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‘Sequencing Economics’ on the ICT Industry Agglomeration for Economic Integration

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  • Akifumi Kuchiki

    (Department of Liberal Arts, The Open University of Japan, Chiba 261-8586, Japan)

Abstract

In this paper, we seek to establish ‘sequencing economics’ in an architectural theory on agglomerations that are comprised of various segments, such as infrastructure, institutions and human resources. The sequencing of such segments is based on a causal chain, with the notion of ‘economies of sequence’ regarded as a tool with which to efficiently sequence the segment construction, as defined by Granger causality relationships. The use of ‘new economic geography’ for cases in which such economies of sequence were applied to the information and communication technology (ICT) industry, the paper concludes that as the starting conditions for the sequencing of the segments of the agglomeration, the value of the share of skilled workers exceeds the threshold value at which the symmetric equilibrium shifts to an agglomeration equilibrium. The results of Granger causality testing identified that an increase in research expenses Granger-causes an increase in the number of patents, and an increase in the number of patents Granger-causes an increase in value added. Based on our results, we conclude that when sequencing the segments of an agglomeration in the ICT industry, the development and invitation of researchers is a precondition, and that the procurement of research funds for patent development precedes any increase in patents. Subsequently, the procurement of funds is necessary for the development of products based on the patents.

Suggested Citation

  • Akifumi Kuchiki, 2021. "‘Sequencing Economics’ on the ICT Industry Agglomeration for Economic Integration," Economies, MDPI, vol. 9(1), pages 1-15, January.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:1:p:2-:d:473504
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    References listed on IDEAS

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    1. Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-968, November.
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    5. Akifumi Kuchiki, 2019. "The existence of economies of sequence: A theory of architecture in building an industry agglomeration," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(3), pages 597-612, August.
    6. Masahisa Fujita & Jacques‐François Thisse, 2003. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 121-145, June.
    7. Hershberg, Eric & Nabeshima, Kaoru & Yusuf, Shahid, 2007. "Opening the Ivory Tower to Business: University-Industry Linkages and the Development of Knowledge-Intensive Clusters in Asian Cities," World Development, Elsevier, vol. 35(6), pages 931-940, June.
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    Cited by:

    1. Akifumi Kuchiki, 2022. "Linking spatial economics and sequencing economics for the Osaka tourism agglomeration," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 610-626, June.
    2. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).

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