Basic Report

A range of indicators and indices have been developed to gauge digital innovation and transformation. However, these metrics are primarily tailored to the needs of national entities, central governmental bodies, and private sector organizations, thus inadequately capturing the unique characteristics inherent to local government operations. To address this gap, this study proposes a 'Local Government Digital Innovation Readiness (LGDIR) Model' that aims to offer a nuanced measurement framework and facilitate targeted assistance for local administrations.
   Firstly, the concept of 'Digital Innovation of Local Governments' and LGDIR was developed through theoretical discussions. In this report, digital innovation of local governments is defined as "the process by which local governments use digital technologies to effectuate comprehensive changes within both the internal components of local government (such as organizational culture, structure, and procedural tasks) and the broader local community." Meanwhile, the LGDIR is conceptualized as " extent of a local government's capacity to actively and sustainably pursue comprehensive changes that leverage digital technology to innovate local administration and enhance the quality of life for residents." This concept highlights the initiative and capability of the agents in the digital transformation process itself. Next, as a preliminary step towards developing the LGDIR Model, this study reviewed existing research on critical success factors for digital innovation and local administrative reform. Moreover, case analyses were conducted on several pioneering initiatives, including SmartATL in Atlanta, USA; the SW Cluster in Cambridge, UK; FutureBuilt in Oslo, Norway; the Digital Healthcare Special Zone in Gangwon-do, South Korea; the Blockchain Specialized Cluster in Busan, South Korea; and the Metaverse Capital Gyeongbuk Basic Plan in Gyeongsangbuk-do, South Korea. Additionally, an overview of digital policies implemented by previous governments was provided to further contextualize the study. This research attempted to develop a Local Government Digital Innovation Readiness (LGDIR) model, based on a clear definition of LGDIR, discussions on success factors pertinent to digital and local administrative innovation, and the examination of digital innovation cases at the regional level. The Malcolm Baldrige (MB) model's framework was applied; however, given that the MB model is conventionally utilized for broad organizational innovation and performance management, it necessitated adaptations to align with the specific aim of this study (measuring local governments' readiness for digital innovation). Accordingly, the seven principal components of the LGDIR model were reconstructed to include ‘Digital Leadership’, ‘Digital Strategy’, ‘Citizens-centricity’, ‘Workforce & Culture’, ‘Operation’, ‘Data & Technology’, and ‘Digital Innovation Performance’. Then, existing digital innovation indicators and indices were categorized to formulate matrices for each key element of the LGDIR model. These matrices were aligned with the core elements of the LGDIR model, based on the MB model, and the measurement system was designed considering the specific characteristics of local governments.
   The initially proposed LGDIR model underwent a validity verification process, employing expert appraisal to ascertain its robustness and applicability. To enhance the validity of the review and evaluation outcomes, a panel of experts comprising professors and doctoral-level researchers in public administration, policy, and law, with research interests in related fields, was assembled. Their feedback was gathered through surveys. According to the experts' validation, the review and evaluation of the LGDIR model were generally positive. However, several significant suggestions for modification were provided, highlighting matrices overlooked by the researchers. Incorporating these insights, adjustments were made, resulting in the refined and finalized LGDIR model and measurement system (refer to Chapter 5).
  
   To overcome the limitations and maximize the value of this research, a series of policy and academic efforts are recommended . Firstly, engaging a wide range of stakeholders, including experts, central, and local government officials in the realm of 'Digital Innovation of Local Governments', is crucial. Their opinions should be systematically collected and incorporated into the model and indicator system, enabling a process of continuous enhancement. Second, the sustainability of measuring and managing the Local Government Digital Innovation Readiness (LGDIR) necessitates the designation of a central ministry responsible for its oversight. Furthermore, a specialized organization should be established to manage the model and indicator system and to undertake pertinent research activities. Third, refining the LGDIR into a unified index or delineating short-term versus mid- to long-term measurement areas requires prioritization and the execution of detailed weighting steps. Fourth, follow-up research is essential not only for developing a measurement model that gauges the digital innovation performance of local governments but also for investigating the relationship between the LGDIR model and local governments' digital innovation performance. Fifth, investigating metrics associated with 'Digital Innovation of Local Governments' from various organizations and proposing a standardized format for any overlapping content is advisable. Sixth, while the measurement of LGDIR should involve a general department to oversee and compile overall responses, it is imperative to thoroughly elucidate the characteristics of each matrix beforehand. This ensures the general department can accurately collect matrix-specific information from the relevant department and correctly attribute the source of the response. Finally, it is necessary to consider in advance the policy responses for each outcome derived from the LGDIR assessment. This entails delineating the policy implications for each indicator within the LGDIR framework and establishing benchmark targets, thereby ensuring a strategic approach to addressing the diagnostic results of the LGDIR evaluation.