The characteristics of the smart city industry and its effects on the national economy of Korea are investigated using input-output analysis. The definition and industrial classification of a smart city are established using the Delphi technique for experts in various fields, from information and communication technologies (ICT) to governmental policies for urban matters. The results of the analysis, including the production, value added and employment induction effects, show that the smart city industry has intermediate characteristics between ICT and urban construction industries, indicating that acquisition of the competitive edge of both the ICT and construction industries is the key to the success of the smart city industry. The crucial industries related to the smart city industry are identified based on an analysis of the forward and backward linkage effects, the results of which suggest the importance of the relevant service industries. The economic effects on the national economy induced by the governmental program for smart city demonstration are estimated using input-output analysis results. Overall, the results of this study indicate that facilitation of the smart city industry plays a key role not only in the sustainable city, but also in the growth of the national economy.

Various strategies and policies have been established to facilitate technological convergence as it becomes increasingly important. However, the current status and progress direction of technological convergence is still not clear, as it is difficult to define and measure convergence phenomena. In this situation, this study examines how technological convergence has continued in Korea’s information and communication technology (ICT) industry, and, further, which cooperative innovation strategies are more effective in technological convergence. In this study, the convergence level of Korean ICT is measured using patent data from 2011 to 2015. Further, this study analyzes the impact of cooperative innovation strategies on Korean ICT convergence. It is believed that, by classifying technological convergence patent applications by the scope of convergence, the declining inter-field and inter-sector technological convergence has caused a decrease in the number of technological convergence patent applications since 2011. An analysis of the correlations between the strategies and performance of technological convergence indicates that ICT firms’ licensing activities play a positive role in creating technologically convergent performance. Specifically, cooperative innovation strategies for not only licensing but also external research contracts and joint research are determined to positively affect performance in inter-sector technological convergence. Meanwhile, only the licensing strategy in inter-field convergence correlates with technological convergence performance. These results will help interpret the driving forces of technological convergence.

The Fourth Industrial Revolution (4IR) represents the ongoing fundamental transformation of the economy, based on disruptive technological change, and is not limited to the manufacturing sector but is expanding to the service sector. This study aims to establish transformation strategies for the service sector to embrace 4IR technology by investigating the firm-level determinants of its adoption and development. Our empirical analysis was performed by the integrated perspective of dissemination and acceptance of new knowledge, and we checked robustness of analysis result by verifying through various estimation methods. This study finds that, for service firms, the business family network and the external collaboration as well as the internal resources (patent rights and internal R&D) play a significant role in decision of adopting or developing 4IR technology. In the perspective of new knowledge acceptance, we found that increasing labour flexibility and labour productivity by performance incentives enhances an organisation’s capability to swiftly adjust to technological change. This study contributes to a better understanding of 4IR in the service sector with the knowledge-based and innovation resistance view, and suggests novel strategic implications for technology diffusion.