An Empirical Analysis for the Agglomeration Effects of High-Tech Industry on Local Economy: The Comparison of High-Tech Manufacturing and High-Tech Services

This study aims to analyze the impact of the concentration of high-tech industries on the regional economy and derive policy implications. Using a spatial econometric model, the study find that the specialization of high-tech manufacturing had a significant positive effect on the regional economy. In contrast, the specialization of the high-tech service industry does not significantly impact. Unlike the high-tech manufacturing industry, the high-tech service industry increases productivity through information exchange based on knowledge accumulation, suggesting that it is necessary to consider competition and diversity in addition to specialization. The results of this study intended to contribute to the establishment of regional economic development strategies in setting policy directions in the high-tech industry sector led by the central government and local governments. In addition, it suggests that the industrialization process, including the establishment of an industry-academia-government cooperation system, is necessary to revitalize the domestic high-tech industry, not just research and development.