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Analysis of Firms’ Performances and Suggestions of Industrial Ecosystem Establishment in the Innovation Cities

Author Kim Jeonghong, Ahn Junki, Ha Jeongseok Date 2020.12.03 Page
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Chapter 1


 Since the moving of firms into innovation cities have started in earnest in 2014, there is a significant lack of systematic research and studies targeting such firms. Moreover, in accordance with the launch of the Innovation Cities Season 2 promoted by the current government, there is a dire need to construct an industrial ecosystem for each innovation cities. Furthermore, as the government is currently planning the additional relocation of public institutions in the capital area, preemptive measures are necessary for upcoming relocation.

 This research aims to analyze the quantitative and qualitative performances of relocation into the innovation cities, by studying firms that have moved into the innovation cities. Based on the analysis, the purpose of this research is to enhance synergy between firms and related industry-academia-research institutes in that regions, and furthermore, to suggest specific policy improving measures to establish the innovative city-centered regional industrial ecosystem.

 The main contents of this study are as follows; Chapter 2 outlines the policy for promoting innovation cities, demonstrates the performance on attracting firms and hiring employees, and then looks at cases of relocation of domestic and foreign public institutions. In chapter 3, an survey is conducted to compare the difficulties and performances of firms between the inside and outside innovation cities. Chapter 4 promotes an empirical analysis on the performance of firms and the industrial ecosystems comparing the inside firms and outside firms in the innovation cities by using the Employment Insurance DB and the results of our surveys. Finally, chapter 5 summarizes the results of this study, and then suggests specific policy measures to improve the performance of firms in innovation cities.

 This study makes several contributions to the literature. While previous studies focused on outputs of the entire innovation cities such as increasing employees or number of firms. Meanwhile, this study focuses on the outcomes that are made after firms’ relocation into innovation cities. Also, the existing research was a macro research focusing on relocated public institutions based on the “Innovation Cities Season 1”. On the other hand, this study is a micro-research focusing on firmsㆍindustries to promote the “Innovation Cities Season 2”. In addition, in previous studies, the industrial ecosystem has been studied without a definition. In this study, the industrial ecosystem is defined.

 The analysis is conducted based on the analysis framework and components that are set to meet the definition.