Go to the Mian menu
Go to the Mian menu

Research ReportsKIET Korea Institute for Industrial Economics and Trade

  • home
  • Publications
  • Research Reports

The Study on Major Policy Challenges of Smart Regional Innovation: Case of Kyoto Japan and Shenzhen China

Author Kim, Sunbae et al Date 2018.12.07 Page

 In this study, we emphasize the need to establish a regional innovative ecosystem for the purpose of cultivating efficient new industries in the platform economy of the Fourth Industrial Revolution (4IR)

 The core content of the research are as follows. First, we review the extant literature and core theoretical concepts underpinning the new production paradigm of 4IR, in which production is increasingly localized and personalized.  

 Via this process, we defined the concept of smart regional innovation through a production paradigm in which regions play prominent roles, and identified policy measures that could be taken to enhance smart regional innovation.

 Those measures are summarized as follows: intensifying multilateral connections and enhancing regional industrial structure, establishing an open innovation foundation to foster a startup ecosystem, revamping the existing system for supporting new business in the platform economy, and building a foundation for smartization.

 Using the above smart regional innovation policy initiatives as an analytical framework for a systematic case study, we analyzed the similarities and differences between the policies in terms of their operational capabilities and the regional economic growth they promoted.

 Next, using the analytical framework described above, we conducted an in-depth analysis of regional economic growth in Shenzen, China and Kyoto, Japan, treating them as case studies of smart regional innovation. In doing so we first assess the overall economic health of theseregions and their particular historical, cultural and institutional characteristics. Then by analyzing these case studies through the smart regional innovation framework established earlier, we determine what factors helped these regions develop, what new growth engines were created, current development trends, the reasons for the success of global firms in these regions, and the mechanisms that underpin the workings of regional innovation and the establishment of business platforms.

 Third, we statistically examine the performance of smart regional innovation through quantitative analysis. Through a networked structural regional of regional industry structure and associated variety characteristics, we determine what effects regional smart innovation strategies have in the areas subject to our case study, and examine what types of paths to sustainable development exist in these regions.

 Finally, based on the results of our in-depth case studies and review of the theoretical foundations of smart regional innovation, we outline seven policy proposals that aim to enable the sustained growth of regional industries in the era of the Fourth Industrial Revolution. These proposals comprise an overarching model for Korean-style smart regional innovation.

 Given the policy goals of smart regional innovation and the importance of enhancing and diversifying the industrial structure of regional industry, we propose the follow policy tasks:

1. Overhaul the method by which target industries are selected for specialization and diversification

 2. Designate optimal spatial unit for promoting regional industry and revitalize industrial linkages

 3. Restructure traditional industries to maximize added value In addition, given the core industrial content and efficient operations that define smart regional innovation, an open, innovation-based ecosystem that encourages entrepreneurship must be established. To further these ends, we propose the following policy tasks:

 4. Build market-led and innovative entrepreneurship ecosystem

 5. Establish a technology-based startup ecosystem founded on cooperation between industry and academia

 Finally, in order to respond to the urgent need to build a foundation for smart industries to flourish in regions to which they are best suited, and where visions for regional development are most likely to come to fruition, we propose the following policy tasks:

 6. Establish a business development system based on an EDP foundation

 7. Develop a platform-based foundation for regional innovation governance and oversight?