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Sectoral and Regional Interdependency of Japanese Firms Under the Influence of Information Security Risks

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The Economics of Information Security and Privacy

Abstract

Although there are some studies on inter-sectoral information security interdependency, the lack of regional interdependency analysis is one of their limitations. In this empirical study, we used an inter-regional input–output table in order to analyze both sectoral and regional interdependencies under the influence of information technology and the information security of Japanese firms. Our analysis showed that the economic scale of a region has a great influence on the characteristics of the interdependency. Furthermore, we found that the demand-side sectors can be classified into five classes based on the characteristics. Among them, the groups with high self-dependency get more benefits from simultaneous understanding of regional characteristics; for the sectors in these classes, investment advice obtained from sectoral characteristics only is very limited, whereas they can obtain much more from regional characteristics. Since these classes include a majority of the sectors, we can recognize the importance of regional interdependency analysis. In the above basic study, what we see is the situation before the Great East Japan Earthquake on March 11, 2011.As an extended study, we estimated the impact of the earthquake on the interdependency. Our main finding from the regional perspective is that the interdependency characteristics of the most damaged region (Tohoku) and of the economically largest region (Kanto) are impacted most significantly. This feature is not changed by the limitation of damage through prior security investment.Both in the basic study and in the extended study, we can see that considering not only sectoral but also regional characteristics is an effective approach to the task of empirically deriving implications related to the interdependency. There are many possibilities of more extended studies based on our methodology.

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Notes

  1. 1.

    In our raw result, the average mean value of ISBD is 0.00754 %. By considering this mean value and the standard deviation, we set the threshold.

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Acknowledgements

We would like to express our sincere gratitude to the Volkswagen Foundation for their kind support with a travel grant to attend the Workshop on the Economics of Information Security (WEIS 2012) in Berlin. We would like to also thank the anonymous reviewers for their valuable comments.

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Correspondence to Bongkot Jenjarrussakul .

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Jenjarrussakul, B., Tanaka, H., Matsuura, K. (2013). Sectoral and Regional Interdependency of Japanese Firms Under the Influence of Information Security Risks. In: Böhme, R. (eds) The Economics of Information Security and Privacy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39498-0_6

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  • DOI: https://doi.org/10.1007/978-3-642-39498-0_6

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