The digital transformation, which is often called as the Fourth Industrial Revolution, is attracting attention as a new driving force for economic growth. Digitalization is emerging as a measure to mid- and long-term trends, such as demographic change and transition to a low-carbon economy, while leading economic and industrial innovation. It is confirmed empirically that for high-income countries including the United States, digitization contributes to productivity improvement in other industries. However, these effects differ from country to country depending on the capabilities of digital innovation such as ICT infrastructure, R&D investment, ICT industry competitiveness, legal system, human resources, business use of ICT, and entrepreneurial activities. In Korea, ICT infrastructure is world-class, and ICT adoption and utilization are highly competitive. However, the competitiveness of ICT services, the effectiveness of R&D investment, contribution to innovation, legal system, human resources and entrepreneurial activities are far behind. By contrast, the United States has the highest level of competitiveness in ICT export, R&D investment and innovation, human resources and entrepreneurial activity. These factors are key concerns of the countries’ digital innovation policy, and each country is making a policy effort centering on it.
  The digital innovation policies of the United States, EU, Germany, Japan and China are similar due to the general characteristics of digital transformation, but they vary according to the capabilities and circumstances of each country. As in our analysis, the United States most clearly demonstrates the general purpose technology hypothesis that ICT capital contributes to increased productivity in the industry. In the United States, ICT has been a key driver of economic growth since the 1980s, and digital innovations led by Internet platform companies have become a source of mid- and long-term economic growth in the Obama administration. Recently, in the United States, innovation in the digital innovation is dominated by ICT or Internet service companies, and traditional manufacturing companies are also reviving through digitization. The US government is constantly investing in strategic research areas and advanced technologies required for digital innovation based on Strategy for American Innovation or NITRD, a government-level IT research and development program. In addition, the federal government operates a Chief Information Officer (CIO) and a Chief Technology Officer (CTO) to improve digital-based government management and to accelerate industrial innovation. The private sector is leading digital innovation while the government focuses on R&D investment in digital industry platforms and basic technologies such as big data and Internet of Things, solving public problems using ICT, and building consumer information protection systems.
  In contrast to the US, the EU has continually experienced a low ICT investment and a low ICT contribution to economic growth. The EU has identified the segmented digital market in the region as the cause of the problems and thus launched the Digital Single Market Strategy for Europe in 2015. Its main objective is to realize economies of scale by integrating the digital market with the elimination of digital barriers in the region and creating a common base of innovation. Following the digital single market strategy, the Digitizing European Industry, announced in 2016, is highlighting manufacturing as the center of European digital industry innovation. Unlike the United States, the EU's digital industry innovation tends to be government-led. In addition, EU focuses on joint private investment in strategic areas, digitization of SMEs, and promotion of technology commercialization.
  Germany is at the center of EU digital innovation. Germany has world-class competitiveness in advanced manufacturing and ICT services and has a solid medium-sized business base. Based on this, Germany is leading the digitalization of manufacturing. Building on long-term preparation with discussion among academia and industry, German government has led digital innovation policy. Germany is the first country to present its vision of the digitization of the manufacturing sector at the policy level. Based on a specific tradition in the process of policy implementation, the German government is engaged in mid- to long-term plans and tasks, and focuses on stakeholder policy platform construction, thereby inducing voluntary participation of companies. It also emphasizes the collaboration between large companies and SMEs so that SMEs can naturally participate in digitization.
  Japan has turned its attention to digital industry innovation as it has suffered from a long-term recession and a rapidly aging population. Japan has a solid competitiveness in ICT manufacturing and service industries, especially with global manufacturing base and robotic technology. In spite of the economic downturn, the Japanese industry has invested in basic R&D with a long-term perspective, securing global competitiveness in original technology. On the basis of this, Japan promotes digital innovation while focusing on process innovation in traditional manufacturing sector. In Japan, the government is playing a leading role in recognizing the digitalization of companies and societies. In particular, the government plays an important role in utilizing ICT technology to solve social problems such as natural disaster prevention, administrative efficiency and education. In addition, the government has established an integrated support system for research and development and various support policies based on the idea that major fields such as cloud service, Internet of Things, artificial intelligence, and big data are connected with each other in terms of industrial innovation.
  China has gained a worldwide market share in the internet platform sector based on the huge market and is recently emerging as a strong competitor of the United States. Since China has a variety of industries with different levels of technology, there is a complex task of promoting the transformation of traditional industries and fostering high-tech industries simultaneously. Therefore, at present, social innovation using ICT has policy implications and it is a key part to establish an innovative ecosystem and encourage start-ups centered on Internet platform companies. The Chinese government is actively promoting entrepreneurship as a substitute for a declining job in the manufacturing industry. In particular, it is characterized by the fact that big corporations take active partnership with the government in the management of platforms for start-up and innovation. In addition, the Chinese government is taking an open initiative in the fields of shared economy, internet banking, medical care, etc., and does not enact regulations that could hinder new types of businesses. do. In spite of various formal and informal regulations, global companies are actively seeking chances to enter the Chinese market. Chinese companies are actively introducing overseas advanced technologies in order to complement their lack of technology, and it is expected that the market will expand in areas where the demand for cooperation with foreign countries such as Internet of Things is increasing.
  Taking into account the general characteristics of digital innovation and the policies of the leading countries, the following lessons can be learned. First, there must be a strategic focus to promote industrial innovation through digital transformation. Digitization is practiced across industries and sectors, but it needs a starting point that matches the existing capabilities, conditions, and needs of the country. Second, the key to digital innovation is data. The Internet of Things, cloud computing, artificial intelligence and big data analysis are directly linked to the collection and analysis of vast amounts of data, which creates industrial competitiveness. Third, digital industry innovation requires openness. This means government agencies, government and business, researcher and business, researcher, openness, and even openness. Fourth, national mid - to long - term digital innovation strategy is needed. Since digitization is carried out across all industries and sectors, a policy implementation system that includes government departments and each stakeholder is needed. Also, in the short-term perspective, the pursuit-oriented industrial innovation policy does not seem to be suitable for the absolute digital transition period. Fifth, the government's role in promoting digital industry innovation needs to be focused on building institutional conditions, mediators between sectors and mediators of consensus, and investment in the public sector.
  The Creative Economy Strategy (2013) is Korea's new economic growth strategy in the era of the digital transformation. This strategy pursues economic and social innovation of the entire society including existing industrial innovation and promising industrial development. In addition, major strategies such as enhancement of science and technology and ICT innovation capacity, creation of entrepreneurial ecosystem, venture and SME development, and industrial innovation through digitization in order to ultimately pursue creation of innovation ecosystem across new economic society, As a growth strategy. However, it failed to fully realize the basic principle of departing from the chasing economic growth model. Moreover, although a considerable number of strategic policies and detailed policies were appropriate in light of the situation in the Korean economy, the strategy was not fully implemented yet.
  Taking into account the industrial competitiveness and the policies of the leading countries, Korea needs to recognized manufacturing as a strategic starting point to promote digital industry innovation. Manufacturing is Korea’s major industry and has a large economic impact such as employment. US and Chinese companies are leading the way in making virtual data as platforms while that of the real data such as operation data of factory facilities is in its early stage, there is a relatively high possibility for Korea to secure the sector. The scope and content of digital innovation policy is very comprehensive, as it can be seen from the EU's digital single market strategy. It is not realistic to achieve the results evenly in every sector and it is necessary to have a lead sector with remarkable performances. As the case of Germany, the government takes significant role in the digitization of the manufacturing sector, thus government should concentrate its capabilities on this agenda.
  Digital transformation is difficult to be defined and it is almost impossible to predict the rapidly changing trends. However, it should be emphasized that the key to digitalization is information and data. Many countries have introduced polices and strategies to emphasize big data, artificial intelligence and robotics, Internet of Things and cloud computing. The data is placed in the core of such policies. Also, collecting and utilizing data in strategic areas such as advanced manufacturing, high-end automobile, smart city, medical, energy and education are very important. Therefore, Korea needs to redesign its industrial strategy with particular emphasis on information and data. In other words, it is necessary to expand and sustain investments in general data technologies such as big data analysis, Internet of Things and cloud computing technology, application of enterprise and industry, and check the regulations to promote utilization of data in strategic industries. In order to spread common technologies such as the Internet, it is necessary to continuously improve institutional conditions such as personal information protection, cyber security, and intellectual property rights, and liberalization of cross-border data movement is the principle of foreign economic policy. And to find out how to do it.
  Digital innovation requires openness among all participants (Open Innovation). In order to effectively promote digital innovation, openness and cooperation among government ministries are required, which is a factor for the success or failure of digital industry innovation. Government should also focus on its role of mediators that form the network between technology developers, owners, and end users who apply them to the business, with a focus on end-users. Technological development is also required for digital-based industry innovation, but more importantly, technology end users are looking for and adapting to their business. This is because digital conversion is the result of an innovative business model that radically transforms the rules of existing games. In order to accelerate the digital transformation of the industry, it is necessary to strengthen the participation of the private and technical users from the R&D stage, to promote the international R&D network by increasing the openness of innovation. In addition, the Korean market should facilitate data-based innovation by leveraging free flow of cross-border data.
  Korea’s digital innovation policy implementation system needs improvements in managing and coordinating various policies promoted by different ministries and public agencies. Digital transformation leads to dramatic changes and innovations that are comparable to the revolution, which affects the entire economy and society. Therefore, strong and comprehensive leadership is needed to oversee data collection and utilization, apply ICT to entire economy and society and invest for advanced R&D.