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Communication Externalities on the Knowledge-based Firms in Metropolitan Areas: Case Study of China and Korea

Author

Listed:
  • Nobuaki Hamaguchi

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Yoshihiro Kameyama

    (The International Centre for the Study of East Asian Development (ICSEAD), Japan)

Abstract

This paper provides some evidence on communication style that serves as the contact tool and its related external economies to knowledge-intensive production and innovation within the emerging high-technology based industrial clusters in metropolitan areas of China and Korea. Our unique data-set from questionnaire survey enables us to examine the firms' behavior of communication regarding the choice of communication mode, how often, with whom, and for what purpose. Such analysis provides insights about actual relationships among business partners of industry-university-government in each cluster of Zhongguancun Area (Beijing), Seoul Digital Complex and Daedeok Valley (Daejeon). Our studies demonstrate that 1) with suppliers firms contact with high frequency but with less face-to-face meeting opportunities, 2) with customers and banks/investors but more with face-to-face contact, as common characteristic, 3) and that firms' long-term experience in the market is helpful to construct such meaningful communication network in Seoul Digital Complex. However, we could not show fully that communication externalities generated by the face-to-face contact influence the innovative output of firms.

Suggested Citation

  • Nobuaki Hamaguchi & Yoshihiro Kameyama, 2006. "Communication Externalities on the Knowledge-based Firms in Metropolitan Areas: Case Study of China and Korea," Discussion Paper Series 182, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:182
    as

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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp182.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Communication externalities; Geographical proximity; Zhongguancun; Seoul Digital Complex; Daedeok Valley;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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