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A need to strengthen a connectivity between industries in the era of the fourth industrial revolution

Author Park, Moonsoo; Lee,Donghee Date 2017.02.06 Issue No 6
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A need to strengthen a connectivity between industries in the era of the fourth industrial revolution

-An analysis of a production connectivity network between the manufacturing and the service industry-

 

 

Korea, ushering in the era of the fourth industrial revolution, has a little connectivity between the manufacturing and the service industry, which makes it difficult for Korea to push for the development of industrial structures and a new industry creation through the convergence of the two industries.

As a result of the analysis of a domestic network between industries, it turned out that a connectivity between the domestic manufacturing and the service industry is weak.

While most industries have a limited role as suppliers of intermediary goods, some industries serve as a hub of a connection network. This leads to imbalanced structures between industries with great impact on supply flows of overall intermediary goods.

 

Disconnectivity between the manufacturing and the service industry in terms of an industrial network of Korea

●In regard to the year of 2014, a connectivity between the manufacturing and the service industry compared to that of the year 2005 weakened, making it uneasy to develop the manufacturing industry through the convergence with the service sector.

●Above all, IT service, professional business service, and the R&D sector, which are in charge of the manufacturing industry’s innovation and production enhancement, become far different from the manufacturing industry.

 

A need to further push for policy to a direction that the manufacturing and the service industry expand convergent value chains

●An increase in the service sector, which serves as intermediary goods in the manufacturing industry, expand productivity in the overall economy through “external effect” according to the connectivity between industries.

●A need to search for ways to expand intra-industry and interindustry connectivity for the coevolution development of major and new industries as a new technology emerges.

●A need to improve regulations that help the enforcement of laws and institutions, eradicating factors that hamper a launch in a new market or an innovation of products via the manufacturing focusing on the service industry.