Smart City Business Ecosystems in South Korea: How Local Government-Business Collaboration Shapes Urban Innovation and Economic Environment

Abstract

Purpose: This study investigates how citizens perceive the role of local governments in shaping smart city business ecosystems and fostering urban innovation in South Korea. It addresses four core issues: (1) how local governments’ management capabilities, promotional strategies, and partnerships with private actors impact smart city sustainability and the local business environment; (2) how institutionalizing living labs creates platforms for entrepreneurial experimentation and opportunity; (3) how improved public services contribute to local innovation and economic vitality; and (4) how communication strategies enhance public engagement in living lab initiatives. Research Design, Data, and Methodology: An online survey was conducted with regionally diverse participants to reflect the varying implementation of smart cities. Factor and regression analyses were used to evaluate the proposed hypotheses. Results: Results show that local governments significantly influence the business dynamics of smart cities through collaborative governance, innovation facilitation, and citizen participation. Notably, living labs act as dynamic tools for public-private co-creation, supporting entrepreneurship and inclusive economic development. Conclusions: These findings provide practical insights for policymakers and stakeholders aiming to align smart city policies with broader innovation and economic goals, moving beyond traditional governance models toward more agile, opportunity-oriented urban strategies.