Abstract:
The information technology (IT) industry has come to the forefront for economic
development of several cities in developing countries such as India and China. Looking at the
success of the IT industry in these countries, an argument has emerged that development of such
industry in South African cities can revitalize their economy. Therefore, the study examined the
potential of development of the IT industry in a South African city by using the case study of a largely
service-oriented city—Bloemfontein. A survey research method and system dynamics modeling
approach were used. Findings suggest that the city has the potential to emerge as an IT industrial city,
however, there exist challenges with regards to infrastructure such as housing, built up space, energy,
and attracting the knowledge workers to the city. Appropriate policy interventions to reinforce these
infrastructures, which can assist to attract the knowledge workers, will enable enhancement in the
earning from the IT industry. Also, the development of the IT industry will strengthen the housing
and built up infrastructure for the IT industry as well as enhance the number of knowledge workers
in the city.
