A Study on Measurement of Regional Knowledge Competitiveness Index in Korea: Using World Knowledge Competitiveness Index
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This paper proposes the Regional Knowledge Competitiveness Index (RKCI) adopted as the model of regional knowledge‐based production by Huggins and Izushi (2009) to measure the knowledge competitiveness of regions in Korea. Also, the paper assesses the relative economic competitiveness of regions in Korea by constructing a single composite index that reflects, as fully as possible, the measurable criteria constituting regional competitiveness and analyzes the relationship between each dependent variable[Gross Regional Domestic Product (GRDP) per capital and consumption expenditure per capita] and the RKCI in Korea. We find that regional knowledge competitiveness shows a spatial disparity in development capacity and the RKCI allows regions to compare their knowledge competitiveness with other regions. The Seoul metropolitan area (Seoul, Incheon, and Gyeonggi) demonstrates the significant concentration of knowledge competitiveness in Korea. This paper also shows that the correlation coefficient between the RKCI and GRDP per capita is only 0.127 in 2007, a decidedly weak correlation. However, the correlation coefficient between RKCI and consumption expenditure per capita is actually 0.794, showing strong correlation. Hence, it is clear that the majority of the high performing regional consumption has knowledge competitiveness in Korea. Finally the RKCI is compared validation in terms of its relationship to the Regional Economic Power Index (REPI) and the Regional Innovation Index (RII). The correlation coefficient between the RKCI and the REPI is only 0.925 in 2007, a decidedly strong correlation. The RKCI also is strongly correlated with RII.
Abstract
This paper proposes the Regional Knowledge Competitiveness Index (RKCI) adopted as the model of regional knowledge‐based production by Huggins and Izushi (2009) to measure the knowledge competitiveness of regions in Korea. Also, the paper assesses the relative economic competitiveness of regions in Korea by constructing a single composite index that reflects, as fully as possible, the measurable criteria constituting regional competitiveness and analyzes the relationship between each dependent variable[Gross Regional Domestic Product (GRDP) per capital and consumption expenditure per capita] and the RKCI in Korea. We find that regional knowledge competitiveness shows a spatial disparity in development capacity and the RKCI allows regions to compare their knowledge competitiveness with other regions. The Seoul metropolitan area (Seoul, Incheon, and Gyeonggi) demonstrates the significant concentration of knowledge competitiveness in Korea. This paper also shows that the correlation coefficient between the RKCI and GRDP per capita is only 0.127 in 2007, a decidedly weak correlation. However, the correlation coefficient between RKCI and consumption expenditure per capita is actually 0.794, showing strong correlation. Hence, it is clear that the majority of the high performing regional consumption has knowledge competitiveness in Korea. Finally the RKCI is compared validation in terms of its relationship to the Regional Economic Power Index (REPI) and the Regional Innovation Index (RII). The correlation coefficient between the RKCI and the REPI is only 0.925 in 2007, a decidedly strong correlation. The RKCI also is strongly correlated with RII.
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