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The 4IR and Regional Capacity

Author

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  • Lee, Won Bok

    (Korea Institute for Industrial Economics and Trade)

Abstract

We are now in the midst of a major transformation called the Fourth Industrial Revolution and related technologies and industries are rapidly developing and converging, bringing about great changes throughout the industrial ecosystem. However, as response measures to the 4IR are mainly designed at the central government level, regional responses are insufficient considering demand for changes in local industries and regional innovation systems. Therefore, in order to receive budgetary support from the central government, local governments have not properly evaluated the capacity of the regions in which they reside, and only major 4IR issues are discovered and presented. The role of the region is very important in enhancing national competitiveness and growing into a leading country through the 4IR. In an era of decentralization, regions have been forced to better plan and implement policies that address issues previously considered to be under the purview of the central government, such as population cliffs, job creation, and securing future growth engines. In order to reduce policy trial and error and maximize the effects of 4IR response policies, it is necessary to accurately grasp the current status of related technologies and industries, improve regional competitiveness and reduce the possibility of worsening regional imbalances. This paper seeks to grasp the current status of technologies and industries related to the 4IR, analyze current conditions in consideration of regional characteristics and capabilities, and propose appropriate response measures.

Suggested Citation

  • Lee, Won Bok, 2021. "The 4IR and Regional Capacity," Industrial Economic Review 21-21, Korea Institute for Industrial Economics and Trade.
  • Handle: RePEc:ris:kieter:2021_021
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    Keywords

    Industry 4.0; Fourth Industrial Revolution; 4IR; innovation; regional innovation; Korea;
    All these keywords.

    JEL classification:

    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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