Author : Hong Chan-young, Kim Muk-han, Kim Su-jin

Department name: Strategy Research Center

Analysis of 5 promising new industries in Seoul (artificial intelligence, robots, etc.), technology and policy

Seoul is a city where the service industry is the main force, accounting for 85% of the total industrial output. In particular, among the service industries, the total output of the knowledge-based service industry is increasing significantly. Considering this industrial environment, Seoul's future new industry support policy should be based on new technologies that are recently predicted to be promising, but should be established in areas highly related to the service industry. This study selects five fields (artificial intelligence, bio-health, fintech, smart mobility, and robots) that have relatively high regional specialization and have strong economic ripple power and are expected to grow rapidly in the future, and set the direction for Seoul's support policy establishment. sought.
As a result of examining the current status of the industry in each of the five fields, first, as commercialization of artificial intelligence is progressing rapidly under the leadership of the private sector, securing manpower to be in charge of high-level technical work is the most required situation. In particular, as artificial intelligence technology is applied to various industries, there is a high voice that there is a serious shortage of IT manpower, especially in small and medium-sized enterprises. While the life cycle of technology in the bio-health field is long, continuous investment is required throughout all stages of technology development, while securing product reliability is important, so cooperation with various related entities such as companies, hospitals, and research institutes is the key. In fintech, new financial services are emerging based on digital technology, and in the process, legal and institutional standards are inevitably required. In addition, as it is a field where finance and IT technology are converged, professional consulting such as finance-related laws and security-related technologies is required. Prior to commercialization of smart mobility, it is necessary to conduct demonstration tests to confirm the effectiveness and safety of the product. Collaboration with the public sector in charge of building and managing transportation infrastructure is essential because newly developed products or services must use existing transportation systems such as roads. Robots still have high technical requirements and the industry is composed mainly of small and medium-sized enterprises (SMEs), so commercialization is relatively slow, but demand for service robots is increasing. Since robots that provide services are essential to interact with humans, the importance of demonstrating the developed products is being emphasized.

Establish new industry fostering strategies that utilize the strengths of Seoul in infrastructure, human resources, and investment support

In order to analyze the existing policies in each of the five major areas, the past policy trends of the central government and Seoul City were analyzed by dividing them into technology development, infrastructure construction, human resource development, investment support and business development, and other policies. As a result of the analysis, it was confirmed that the central government is providing policy support at a certain level or higher in all policy areas of the five new industries. The Seoul Metropolitan Government is promoting support policies focusing on infrastructure construction only in the fields of artificial intelligence, bio-health, and fintech. Although technology development is the most essential development requirement for all new industries, the policy areas that local governments will focus on can be said to be policies that directly help local companies in the commercialization stage. In this respect, the city of Seoul needs to focus its policy capabilities on infrastructure construction, manpower training, investment support, and business development. By sector, artificial intelligence, bio/health, and fintech sectors need to partially supplement existing policy support, focusing on corporate demand. Since the smart mobility and robot fields are areas that the Seoul Metropolitan Government needs to newly support, it is necessary to establish a new strategy that takes advantage of the city's strengths.
In the infrastructure construction sector, Seoul's existing support was mainly focused on support centers and space provision projects for start-up companies. However, new industries need to build equipment and data in addition to physical space, so it is necessary to seek a more active role for the public sector. In the field of human resource development, the city of Seoul promoted education programs mainly targeting companies. However, in addition to corporate executives and employees, the city of Seoul has a large potential labor force, such as college students and job seekers, so that they can benefit from education to improve the current shortage of manpower. It can be said that the existing policies of the Seoul Metropolitan Government in the business development and support sector promoted supplier-oriented support mainly for small and medium-sized enterprises (SMEs). However, since the city of Seoul has various industry, academia, and research entities, and there are many demand companies and end consumers, it will be possible to increase the effectiveness of corporate support by inducing them to meet their needs.

Derive 4 promotion strategies, including providing new business demonstration opportunities and inducing convergence-type new services

Based on the analysis results, the opinions of private business associations in each of the five fields were collected, and the contents of interviews with industry, academia, and research expert groups in each field were also considered, and a new industry fostering plan required by Seoul was proposed. The proposed promotion strategy is summarized into four categories: ① customized supply and demand of manpower, ② vitalization of entrepreneurship networks, ③ provision of new business demonstration opportunities, and ④ induction of convergence-type new services.

 

 

The first, 'customized manpower supply and demand', reflects the areas where private companies in the five fields complain the most. In particular, considering the favorable response to industry-linked education programs that induce students to learn through the process of solving practical problems in the field, the Seoul Metropolitan Government can operate or support similar types of education programs. In addition, it is suggested that it would be a good way to promote scholarship and housing support projects aimed at attracting excellent human resources so that high-quality human resources in the IT field can reside in the Seoul area.
The second 'Activation of Entrepreneurship Network' is to create an ecosystem environment that is good for new companies to start up. In the field of bio and health, which requires thorough clinical data, it is necessary to induce cooperation between industry, academia, research institutes, and hospitals in the process of clinical verification and commercialization of research results. In an environment where convergence between new fields such as fintech takes place, a policy to support professional services such as legal services, investment support services, and consulting on specific technologies such as security is also needed.
The third 'provision of new business demonstration opportunities' is to utilize the strengths of Seoul, which has a large number of consumers, while supporting the key to commercialization of new technologies. Industries that need to launch new products, such as smart mobility and robots, need to secure a track record in the actual operating environment. do. On the other hand, it is also important to make available public data. In the past, it was only at the level of simple information disclosure. In the future, it is desirable for the public sector to actively promote open innovation by actively proposing new services and resolving them together with private companies.
The fourth, 'inducing new convergence service' is to expand and diversify commercialization by discovering new demand. Creating new demand that can utilize new businesses in the public sector, such as education, safety, and health, and linking developed products to public procurement is expected to have the effect of mitigating the uncertainty of the demand side and the risk of commercialization failure. It also proposes a plan to support the digital transformation of major existing industries in Seoul, such as manufacturing and content. If new technologies create synergies with existing industries through these policies, it will lead to the creation of new services, maximizing the effect of fostering new industries.

Need to establish detailed implementation tasks and maximize local ripple effects of central government policies and projects

Some of the proposed promotion strategies do not yet have or are insignificant, and new projects will have to be promoted in order to be implemented. In the future, it is necessary to establish action plans in collaboration with related departments such as transportation and systems. Meanwhile, all of the five new industries mentioned are highly related to the central government's R&D promotion strategy. In the end, since technology improvement through R&D is one of the key factors for successful industrialization, it is necessary to closely examine the central government's promotion policies and continuously seek ways to maximize its influence on Seoul, such as attracting demonstration projects to the region.

 

 

☞ Future new business development direction of Seoul in the era of digital transformation

☞ Source: Seoul Institute