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The Impact of Smart Manufacturing-Based Emerging Industrieson Regional Manufacturing Efficiency

  • Industry Promotion Research
  • Abbr : IPR
  • 2025, 10(4), pp.13~22
  • DOI : 10.21186/IPR.2025.10.4.013
  • Publisher : Industrial Promotion Institute
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Received : October 1, 2025
  • Accepted : October 15, 2025
  • Published : October 31, 2025

Kim Do-Hee 1 Lee Ju-byung 1

1창원시정연구원

Accredited

ABSTRACT

This study examines the impact of smart manufacturing–based emerging industries on the efficiency of regional manufacturing sectors across Korea’s 17 metropolitan and provincial regions. Using LQs for the AI industry and the Advanced manufacturing and robotics industry, we measure the degree of industrial agglomeration in each region. Manufacturing efficiency is estimated using DEA, followed by Tobit regression analysis. The empirical results show that, over the entire sample period, the LQ for the AI industry exerts a positive and significant effect on manufacturing efficiency, suggesting that the diffusion of AI technologies contributes to the advancement and productivity growth of the manufacturing sector. In contrast, the LQ for the advanced manufacturing and robotics industry exerts a negative effect on efficiency, indicating that transition costs and other short-term adjustment burdens in fact outweighed potential efficiency gains during the study period. This finding implies that even in regions with high industrial specialization, efficiency improvements are contingent upon adequate technological adoption capacity and operational readiness. Policy implications include strengthening empirical foundations for AI technology deployment, building integration platforms between traditional manufacturing and emerging industries, and promoting balanced regional development to narrow efficiency disparities.

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