CRI

 [ABSTRACT]

This study examines the role of service-oriented research and development (R&D) in promoting balanced industrial growth and strengthening the service economy in Chungbuk Province, Korea. While Chungbuk is a leading manufacturing region, its service sector remains underdeveloped, resulting in structural weaknesses such as limited economic diversification, low private consumption, and continuous outflow of income. The research underscores that service R&D should not be confined to improving efficiency in existing services, but rather focus on creating and advancing new industries and growth drivers at both national and regional levels.

To provide a systematic foundation for policy, the study employs the Korean Standard Industrial Classification (KSIC) to categorize service industries relevant to R&D. Six major domains are identified: (1) ICT·AI·content services, (2) R&D and support services, (3) business innovation support services, (4) logistics and distribution services, (5) social infrastructure services, and (6) lifestyle, cultural, and tourism services. This classification allows for differentiated sector-specific policies while enabling cross-industry linkages to enhance competitiveness.

A comparative analysis of global cases shows that the United States, European Union, Germany, Japan, and China recognize service R&D as a driver of innovation, prioritizing digital transformation, public–private collaboration, and test-beds for emerging technologies. In Korea, service R&D policy has expanded since 2007, from supporting knowledge services and manufacturing–service convergence toward broader domains such as culture, welfare, and digital-based services. In the 2020s, emphasis has shifted to citizen-centered innovations, digital transformation, non-contact services, and productivity improvements.

Findings indicate that Chungbuk’s service industry remains weak in knowledge-intensive domains such as ICT·AI·content and R&D support services, while logistics and distribution services dominate. Across all six domains, the province shows low specialization and clustering, limiting competitiveness. Regional innovation analysis further highlights disparities: the capital region records the highest innovation performance (19.5%) through active collaboration with universities, research institutes, and government, whereas Chungbuk relies more heavily on external innovation modes such as joint development and outsourcing. Barriers include market uncertainty, financial constraints, and limited firm capacity. Moreover, monetary government support shows weak effectiveness, while inter-organizational collaboration and structured innovation strategies demonstrate stronger positive impacts.

Policy recommendations for Chungbuk include building governance systems for innovation, strengthening regional R&D institutions, securing sustainable budgets, fostering digital transformation and skilled workforce development, and promoting inclusive and diverse innovation ecosystems. Implementing sector-specific strategies across the six domains can enhance service R&D, support regional balance, and contribute to Korea’s broader innovation-driven growth.