The Challenges of Technology and Economic Catch-up in Emerging Economies
1st Edition
Published on 24. June 2021
448 pages
978-0-19-264936-2 (ISBN)
Description
This is an open access title available under the terms of a CC BY-NC-ND 4.0 International licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations.
Innovation is a pivotal driving force behind economic growth. Technological capability deepens and diversifies industrial activity, which fundamentally enhances growth potential. Consequently, failure to build effective technological capability can lead to slow long-term economic growth. This book synthesizes and interprets existing knowledge on technology upgrading failures in order to better understand the challenges of technology upgrading in emerging economies. The objective is to bring together diverse evidence on three major dimensions of technology upgrading: paths of technology upgrading, structural changes in the nature of technology upgrading, and the issues of technology transfer and technology upgrading. Knowledge on these three dimensions is synthesized at the firm, sector, and macro levels across different countries and world macroregions.
Compared to the challenges and uncertainties facing emerging economies, our understanding of technology upgrading is sparse, unsystematic, and scattered. The recent growth slowdown in many emerging economies, often known as the middle-income trap, has reinforced the importance of understanding the technology upgrading challenges they experience. While our understanding of these issues from the 1980s and 1990s is relatively more systematised, the more recent changes that took place during the globalization and proliferation of global value chains, and the effects of the 2008 financial crisis, have not been explored and compared synthetically. The current effects of COVID-19, geopolitical struggles, and the growing concern around environmental sustainability add significant complexity to an already problematic situation. The time is ripe to take stock of our existing knowledge on processes of technology upgrading in emerging economies and make further inroads in research on this crucial issue.
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Jeong-Dong Lee | Keun Lee | Dirk Meissner
The Challenges of Technology and Economic Catch-up in Emerging Economies
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06/2021
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Persons
Jeong-Dong Lee is a Professor of the Interdisciplinary Graduate Program on Technology Management, Economics, and Policy at Seoul National University. He is an editor of the journal Science and Public Policy. Since 2019, he has served as the Special Advisor to the President for Economy and Technology in the Office of the President, The Republic of Korea.
Keun Lee is a Professor of Economics and Head of the Center for Comparative Economic Studie at Seoul National University. He is an editor of Research Policy, and an associate editor of Industrial and Corporate Change. He previously served as the President of the International Schumpeter Society, and a member of the Committee for Development Policy of the UN.
Dirk Meissner is Distinguished Professor and Head of the International Laboratory for Economics of Innovation at the National Research University Higher School of Economics, Moscow. He serves on the editorial boards of Journal of Knowledge Management and International Journal of Innovation and Technology Management.
Slavo Radosevic is Professor of Innovation Studies at the University College London where he has also been acting and deputy director of the School of Slavonic and East European Studies. He acts as an expert for the EC, OECD, UNESCO, UNIDO, World Bank, UNECE, and several governments in CEE.
Nick Vonortas is Professor of Economics and International Affairs and Director of the Institute of International Science and Technology Policy at The George Washington University. He also holds a 'São Paulo Excellence Chair' in Technology and Innovation Policy at the University of Campinas, Brazil, and is an editor of the journal Science and Public Policy.
Content
- Cover
- The Challenges of Technology and Economic Catch-up in Emerging Economies
- Copyright
- Praise for the Challenges of Technology and Economic catch-up in emerging Economies
- Preface
- Acknowledgements
- Contents
- List of Figures and Tables
- Figures
- Tables
- List of Contributors
- 1: Technology Upgrading and Economic Catch-Up: Context, Overview, and Conclusions
- 1.1 Introduction
- 1.2 Setting the Stage
- 1.2.1 Definition of Technology Capability and Upgrading Patterns
- 1.2.2 Economic Growth, Catch-Up, and Technological Capability
- 1.2.3 Contemporary Challenges
- 1.2.3.1 Global Value Chain Complexity
- 1.2.3.2 Emerging Technological Paradigm
- 1.2.3.3 Sustainable Growth
- 1.2.4 This Volume
- 1.3 Main Themes of the Book
- 1.3.1 Technology Capability and Growth Performance at the Country Level
- 1.3.2 Technology Capability Upgrade and Sectoral Catch-Up
- 1.3.3 Emerging Paradigm on Technology Capability Upgrading
- 1.3.4 Innovation Policy for Technology Upgrading
- 1.4 Key Findings
- 1.5 The New Global Context and the Road Ahead
- Acknowledgment
- References
- Part I: Technology Capability and Growth Performance at the Country Level
- 2: Capabilities, Competitiveness, Nations
- 2.1 Introduction
- 2.2 Knowledge, Economic Development, and Capabilities
- 2.3 (How) Can Capabilities be Measured?
- 2.4 Capabilities, Growth, and Competitiveness: A Model
- 2.5 The Competitiveness of Nations: An Empirical Analysis
- 2.6 Conclusions
- Acknowledgments
- References
- Appendix (data and sources)
- 3: Technology Upgrading in Emerging Economies: A New Approach to its Measurement, Results, and Relationship to Mainstream Measures
- 3.1 Introduction
- 3.2 Measuring Technology Upgrading: Conceptual Approach and Methodology
- 3.3 Capacity for Technology Upgrading: A Descriptive Analysis of Countries' Relative Positions
- 3.4 The Dynamics and Morphology of Technology Upgrading: An Overview
- 3.5 Testing the Relevance of Technology Upgrading: A Dual Approach
- 3.5.1 Descriptive Analysis
- 3.5.2 Regression Analysis
- 3.5.2.1 Total Factor Productivity: A Decomposition Exercise
- 3.5.2.2 Labour Productivity
- 3.5.2.3 Summary of the Regression Results
- 3.6 Conclusions and Policy Implications
- Acknowledgments
- References
- Appendix
- 4: Middle Innovation Trap: Capability Transition Failure and Stalled Economic Growth
- 4.1 Introduction
- 4.2 Two Types of Technological Capabilities and Their Distinct Characteristics: An Analytic Framework
- 4.2.1 The Need for Two Different Capabilities in Long-Run Economic Growth
- 4.2.2 The Characteristics of Implementation Capability and Design Capability
- 4.3 Development Pattern of the Two Technological Capabilities: An Empirical Evidence
- 4.3.1 Measuring Two Technological Capabilities
- 4.3.2 Dynamics of the Two Technological Capabilities along with a Long-RunEconomic Growth
- 4.4 Middle Innovation Trap and Transition Failure
- 4.4.1 Middle Innovation Trap and Growth Stall
- 4.4.2 The Reasons for Transition Failure
- 4.5 Innovation Commons to Facilitate the Transition from Implementation to Concept Design Capability
- 4.5.1 A Strong Advanced Manufacturing Capability as a Platform for Trial and Error
- 4.5.2 Learning Capability to Nurture Professionals
- 4.5.3 Socio-CulturalInstitutions to Favor the Accumulation of Trial and Error
- 4.5.4 Consistent and Coherent Innovation Policy to Lead Change
- References
- 5: Economics of Technological Leapfrogging
- 5.1 Introduction
- 5.2 What is Leapfrogging: Origins and Variations
- 5.3 Why the Latecomers Need it: Two Reasons
- 5.4 One Pre-Conditionand the Two Risks of Leapfrogging
- 5.4.1 Pre-conditionfor Leapfrogging
- 5.4.2 The Two Risks Involved in Leapfrogging
- 5.4.2.1 The Risk of Choice over Alternative Technologies
- 5.4.2.2 The Risk of Finding the Initial Market
- 5.4.2.3 Implications: Public-Private R&D Consortium and the Incumbent Trap
- 5.5 Three Windows of Opportunity for Leapfrogging
- 5.5.1 Two Industry Cases
- 5.6 Leapfrogging for the Fourth Industrial Revolution and Sustainable Development
- 5.6.1 Leapfrogging for the Fourth Industrial Revolution
- 5.6.2 Leapfrogging for Sustainable Development
- 5.6.3 Cases of Leapfrogging in Latecomer Economies
- 5.6.3.1 Two Cases from China
- 5.6.3.2 Using IoT technologies for Fish Farming in Indonesia
- 5.6.3.3 Biofuels in Brazil
- 5.6.3.4 Cases from Africa
- India: A Case of Country-LevelStage-SkippingLeapfrogging
- 5.7 Enabling Policies and Prospect for Leapfrogging
- 5.7.1 Enabling Conditions and Policies
- 5.7.2 Prospect of Leapfrogging-BasedDevelopment
- References
- 6: Innovation Surveys as Evidence for Technological Upgrading and Catch-Up Studies
- 6.1 Introduction
- 6.2 Search for Internationally Comparable and Comprehensive Measures of Innovation Capabilities
- 6.2.1 Indicators of Innovation Capabilities Used in Catch-Up Development and Technological Upgrading Studies
- 6.2.2 Innovation Surveys: An Internationally Harmonized and Systemic Data Source on Business Innovation
- 6.3 Measuring Innovation Capabilities with Innovation Surveys
- 6.3.1 Identifying Firms' Capabilities: Taxonomies Based on Innovation Survey Microdata
- 6.3.2 Identifying Innovation Capabilities at the Sectoral Level
- 6.4 Observing the Dynamics of Innovation Capabilities at National and Sectoral Levels: The Evidence from the Russian Innovation Survey
- 6.4.1 Methodology to Measure Innovation Capabilities Using Composite Indicators of Output-Based Innovation Modes
- 6.4.2 Innovation Capabilities at the National Level
- 6.4.3 Sectoral Dynamics of Innovation Capabilities
- 6.4.4 Discussion in the Context of Russia's Technological Upgrading and Economic Catch-Up Agenda
- 6.5 Concluding Remarks
- Acknowledgments
- References
- Part II: Technology Capability Upgrade and Sectoral Catch-Up
- 7: Macro and Micro Foundations for Technology Upgrading and Innovation: The Case of Shipbuilding and Offshore Industry in Brazil
- 7.1 Introduction
- 7.2 Macro and Micro Foundations for Technology Upgrading and Innovation
- 7.2.1 Institutional-Market-Governance
- 7.2.2 Industry Techno-Economic Coordination Structure
- 7.2.3 Techno-Organizational Capabilities and Learning Mechanisms
- 7.2.4 Capability Building Failures and Costs
- 7.3 Research Methods
- 7.4 Technological Upgrading and Innovation in the Brazilian Shipbuilding and Offshore Industry
- 7.4.1 Setting the New Institutional-Market-Governance Framework (MACRO
- 7.4.2 Defining the Industry Techno-Economic Coordination Structure (MESO)
- 7.4.3 Techno-Organizational Capabilities and Learning Mechanisms: Shipyard A (MICRO)
- 7.5 Frictions and Capability Building Costs
- 7.5.1 Techno-Organizational Frictions
- 7.5.1.1 Engineering Capabilities
- 7.5.1.2 Procurement Challenges or Capabilities
- 7.5.1.3 Construction Capabilities
- 7.5.1.4 Labor Productivity and Qualification
- 7.5.2 Industry Techno-Economic Coordination Structure Frictions
- 7.5.3 Institutional-Market-Governance Frictions
- 7.6 Policy Outcomes and Discussion
- 7.7 Concluding Remarks
- Acknowledgments
- References
- 8: Technological Learning Strategies and Technology Upgrading Intensity in the Mining Industry
- 8.1 Introduction
- 8.2 Natural Resource-Intensive Industries and Mining: A Brief Overview
- 8.3 Theoretical Background
- 8.3.1 Windows of Opportunity
- 8.3.2 Firms' Technological Learning Strategies
- 8.3.3 Technology Upgrading Intensity
- 8.4 Methods
- 8.4.1 Selected Firms and Related Organizations
- 8.4.2 Data Collection Process
- 8.4.3 Analysis Process
- 8.5 Findings
- 8.5.1 Emergence Phase (Early-1940s-Mid-1960s)
- 8.5.1.1 Windows of Opportunity
- 8.5.1.2 Firms' Technological Learning Strategies andTechnology Upgrading
- 8.5.1.3 DUI Learning Mechanisms
- 8.5.1.4 STI Learning Mechanisms
- 8.5.2 Gradual Catch-Up Phase (Late-1960s-Late-1990s)
- 8.5.2.1 Windows of Opportunity
- 8.5.2.2 Firms' Technological Learning Strategies and Technology Upgrading
- 8.5.2.3 DUI Learning Mechanisms
- 8.5.2.4 STI Learning Mechanisms
- 8.5.3 Forging Ahead Phase (Early-2000s-Mid-2010s)
- 8.5.3.1 Windows of Opportunity
- 8.5.3.2 Firms' Technological Learning Strategies and Technology Upgrading
- 8.5.3.2.1 DUI Learning Mechanisms
- 8.5.3.2.2 STI Learning Mechanisms
- 8.6 Discussion
- 8.6.1 Discussion of Findings and Contributions to Research
- 8.6.2 Policy Implications
- 8.6.3 Limitations and Further Research
- Acknowledgments
- References
- 9: Upgrading Non-Technological Capabilities: Evidence from Korean Firms
- 9.1 Introduction
- 9.2 Capabilities: Technological and Non-Technological
- 9.2.1 Technological Capabilities
- 9.2.2 Non-TechnologicalCapabilities
- 9.2.3 Exploratory Framework
- 9.3 Case Overview and Methodology
- 9.3.1 Nuclear Reactor (SMART, System Integrated Modular Advanced Reactor)
- 9.3.2 Nuclear Power Plant (NPP) Construction (APR1400)
- 9.3.3 High-SpeedTrain (KTX: Korea Train eXpress)
- 9.3.4 Research Methods
- 9.4 Case Studies
- 9.4.1 Fluid Phase: SMART-P
- 9.4.1.1 KAERI's Regulatory Response for SMART-P
- 9.4.1.2 Inter-FirmRelationships: Regulatory Agency
- 9.4.2 Transition Phase: APR 1400
- 9.4.2.1 Process for Project Financing by KEPCO
- 9.4.2.2 Inter-FirmRelationships: Horizontal Interaction
- 9.4.3 Specific Phase: KTX
- 9.4.3.1 KHSRCA's KTX Construction Process
- 9.4.3.2 Inter-FirmRelationships: Vertical Disintegration
- 9.5 Discussion: Non-Technological Innovation in Latecomers
- 9.6 Conclusion and Implications
- References
- Part III: Emerging Paradigm on Technology Capability Upgrading
- 10: Catching Up or Developing Differently?: Techno-InstitutionalLearning with a Sustainable Planet in Mind
- 10.1 Introduction
- 10.2 Planet under Threat-and the Need for Absolute Decoupling
- 10.3 Is Absolute Decoupling Compatible with Capitalism?
- 10.4 The Catching-UpDebate Revisited
- 10.5 Does the Notion of "Catching-Up"Become Meaningless in a Green Transformation?
- 10.6 Policy Lessons: Combining Insights from Catching-Upand Green Transformation Research
- References
- 11: Leapfrogging on Steroids: China's Green Growth Strategies
- 11.1 Introduction
- 11.2 Development as Leapfrogging: Beyond Catch-Up
- 11.3 Is China Greening its Energy System Faster than Expanding its Black (Coal-Fired)System?
- 11.4 Leapfrogging Cases in China
- 11.4.1 Ultra High Voltage (UHV) Power Grid
- 11.4.2 High-SpeedRail (HSR) Inter-CityTransport System
- 11.5 Greening as Leapfrogging on Steroids: Concluding Remarks
- References
- 12: Innovation for Inclusive Structural Change
- 12.1 Introduction
- 12. 2 Innovation, Structural Changes and Inclusion: A First Glance
- 12.3 Inclusive Structural Change: The Analytical Framework
- 12.3.1 Building Blocks: Definitions and System Dynamics
- 12.3.2 From Innovations to Structural Change and Inclusion: Illustrative Steps
- 12.4 Inclusive Structural Change: Bridging the Gaps in the Literature
- 12.4.1 Technological Upgrading, Structural Change, and Inclusion: A Brief Synopsis of the Existing Literature
- 12.4.2 Innovation for Inclusive Structural Change: Narrowing the Gaps
- 12.5 Inclusive Structural Change: Three Cases of Trade-offs in LMICs and the Role of Policy
- 12.5.1 South-SouthTrade and Investment
- 12.5.2 Agglomeration Economies and Diffusion
- 12.5.3 Indigenous and Informal Sector Innovation
- 12.6 Conclusions: A Research Agenda on InclusiveStructural Change
- 12.6.1 Summary of Key Themes
- 12.6.2 A Research Agenda toward a New Political Economy of Inclusive Structural Change
- 12.6.2.1 Innovation and Technology Transfer for Inclusive Structural Change
- 12.6.2.2 Challenges for Innovation and Industrial Policies
- 12.6.2.3 Measurement and Indicators
- Acknowledgments
- References
- 13: Evolutionary and Interacting Spheres that Condition the Technological Capabilities Accumulation in Latin America
- 13.1 Introduction
- 13.2 The Latin American Context: Volatility, Inequalities, Innovation Systems, and Policies
- 13.3 Techno-Economic,Enviromental, and Socio-PoliticalDimensions and TCA
- 13.3.1 Different Approaches to TCA
- 13.3.2 Recognizing the Role of the Context and the Existence of Different Interacting Spheres
- 13.3.3 Different Dimensions in the Analysis of the National Innovation Systems
- 13.3.4 A Conceptual Model to Characterize the Co-Evolution of TEES and SPS with the TCA: Micro, Meso, and Macro Interactions
- 13.4 Research Design
- 13.4.1 Data that is Needed
- 13.4.2 The Challenges of the Data
- 13.4.3 A Proposal of Research Designs
- 13.4.3.1 TEES Indicators:
- 13.4.3.2 SPS Indicators
- 13.5 Countries' Development Profiles
- 13.6 What We Can Learn from This Model?
- 13.6.1 Limitations of this Type of Model Based on Co-Integration Methods
- 13.6.2 Some Lessons Learned on the Countries' Profiles for STI Policy
- 13.7 Final Reflections
- References
- Part IV: Innovation Policy for Technology Upgrading
- 14: Using Large-Scale Programs to Help Develop Technological Capabilities: Cases in China
- 14.1 Introduction
- 14.2 Theoretical Background
- 14.3 Research Methodology
- 14.3.1 Research Background
- 14.3.2 Data Collection
- 14.3.3 Data Analysis
- 14.4 Key Findings
- 14.4.1 Initiation of Large Scale Programs Based on Strategic Intent
- 14.4.2 Key Strategies to Build New User-Producer Relationships
- 14.4.3 Impact of Government Policies and the Social Environment
- 14.4.4 The Crucial Role of Outstanding Leaders
- 14.5 Discussion and Conclusion
- 14.5.1 Evolution of Large Technical Systems in Large Developing Countries
- 14.5.2 Key Challenges Facing Large-Scale Programs
- 14.5.3 Special Role of Large Firms
- References
- 15: New Industrial Innovation Policies in a World of Global Value Chains
- 15.1 Key Traits of a New Industrial Innovation Policy Approach
- 15.2 Classification of Industrial Policy and Why it Matters
- 15.3 GVC-orientedPolicies: A Change in the Policy Vision
- 15.4 GVCs and Trade Policies
- 15.5 GVCs and Investment Attraction Policies
- 15.6 GVCs and Innovation Systems
- 15.7 Conclusions
- Acknowledgments
- References
- 16: Experimentalist Governance for Technology Upgrading: New Industrial Policy Process
- 16.1 Introduction: Why is This Chapter Included in This Book?
- 16.2 Making Choices without Picking Winners: NIP Process
- 16.3 New Innovation Policy Program as a Novel Positive Variation of Public-Sector Performance
- 16.4 Key Procedure: Diagnostic(Problem-Solving) Monitoring
- 16.5 NIP Process "in the Small" (Managerial Sense) and "in the Large" (Evolutionary Sense)
- 16.6 Conclusion: New Industrial Policy Process is Necessarily Full of Paradoxes
- References
- Index
