Assessments of ICT Policy Options: The Framework of Input–Output Table Linked with Intangible Knowledge Stock

Abstract

The 21st century marks the prosperity of cyber systems that drastically reshaped the social economy structure. Confronting the hyper-aging society with shrinking population in Japan, rapid development of ICT/IoT has contributed to social economic change nowadays while evaluating the effectiveness of policy options thus becomes an urgent task for stakeholders. A new type of social economic development with technology substitute of labor deserves more attention to accommodate technology improvement in the society. In order to capture the structural change, we develop a CGE model applying Japan’s input–output table from 1995 to 2011 with the disaggregation of 95 sectors. In this model, the capital stock has been distinguished into tangible and intangible capital to better interpret the R&D capital formation and its spillover effect for technology realizations. Based on the mechanism, a user-friendly application called SPIAS-e was developed for policy option evaluation. Finally, the chapter demonstrated simulation results of STI policy options scenarios on how new service platform with ICT would be affected by R&D investments and technological improvement.