Abstract
This study aims to analyze a spatial concentration and network of Seoul Digital Valley as a representative case of urban industrial complex in Korea and secondly, to identify locational factors of Seoul Digital Valley and finally to suggest a policy implication. Also this study extract variables affecting business' decision to stay or leave to other areas and interpret its meaning. The frequency and the magnitude of the locational advantages is analyzed. The result shows that the advantages responded frequently are as follows: location cost, transportation infrastructure, service facilities, pleasant environment, telecommunication infrastructure, accessibility to urban center or major facilities. This show the result of factor analysis on locational advantages to extract new factors representing the similar group of locational advantages. There are five factors which has eigen value over 1.0. And those five factors can explain 62.8% of all variance. Five factors could be named as locational factor of business support, locational factor of physical facilities, locational factor of environment, locational factor of business clustering, locational factor of support policies. The probability of continuous stay is analyzed to find out which locational advantage affect the decision on 'stay or not' of the firms in Seoul Digital Valley. The result of logistic regression shows that the variables positively affecting the decision of remaining and the variables negatively affecting the decision of remaining are different. In summary, the locational advantages of Seoul Digital Valley are formed focusing on physical and environmental factors and these could induce high technology firms to Seoul Digital Valley. But the support on technology innovation and R&D related innovation is necessary to upgrade the competitiveness of Seoul Digital Valley.