There has been a spatial reorganization of producer services within the city of Seoul. Seoul has transformed from mono-center to a multicenter of producer services. In addition to the existing center of CBD, two areas, Kangnam and Youngdeungpo, have e...
There has been a spatial reorganization of producer services within the city of Seoul. Seoul has transformed from mono-center to a multicenter of producer services. In addition to the existing center of CBD, two areas, Kangnam and Youngdeungpo, have emerged as the new centers of producer services in Seoul with relocation from the CBD and location of new start-ups and spin-offs. A majority of firms have cooperation alliances with customers, suppliers, and/or competititors: A relatively high proportion of firms have cooperation alliances with competititors in CBD, service suppliers in Kangnam, and either manufacturing or services customers in Youngdeungpo. The strong global/local networks with competititors in the CBD reflects that firms in the CBD are relatively older and larger and, even more, are struggling to adjust and survive in the severe competitive environments. The difference between the two new centers is related to the fact that Kangnam is specialized in advanced services and networks among service firms, while firms in Youngdeungpo have strong forward linkages to nearby manufacturing firms and/or to larger producer services in Yoido. There are also significant differences both in the degree of local and global linkages by location. Firms located in Kangnam have generally much stronger local inter-firm networks within the Kangnam area than firms located in other areas in Seoul. On the other hand, firms in CBD are relatively older and have much more intensive overseas ties such as licensing, strategic alliances, and foreign investments than firms in any other areas. This difference in the global-local networks suggests the differences in supporting space for innovations or technological changes.