Estimation of the Demand Function of the Information and Communication Construction Business

The smart convergence environment, in which all industries are converged around ICT infrastructure -- with the eventual inclusion of both industry and culture -- looms. With the emergence of new convergence industries such as smart medicine, smart cities, and smart automobiles, the ICT infrastructure is recognized as the foundation of the overall economy. As such, the importance of the next generation of information and communication construction businesses, which constructs the ICT infrastructure, is highlighted under the smart convergence paradigm environment; various multilateral policies to foster the information and communication construction business -- led by the Ministry of Science, ICT, and Future Planning -- are being implemented. Like other infrastructure industries, however, the estimation of the demand function of the information and communication construction business overall is essential for effectively establishing promotional policies for information and communication construction businesses. However, there has been no study which theoretically estimates the market demand function in the information and communication construction business thus far. The pursuit of a creative economy is a national agenda, as the significance of accelerating the ICT infrastructure is emphasized. Therefore, this paper seeks to estimate quantitatively the demand function in the information and communication construction business using empirical data and a statistical model and then to present policy implications which will aid the development of the information and communication construction business.