How Nations Learn
Technological Learning, Industrial Policy, and Catch-up
1st Edition
Published on 19. June 2019
304 pages
978-0-19-257886-0 (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.
What are the prospects for successful learning and catch-up for nations in the twenty-first century? Why have some nations succeeded while others failed? The World Bank states that out of over one hundred middle-income economies in 1960, only thirteen became high income by 2008. How Nations Learn: Technological Learning, Industrial Policy, and Catch-up examines how nations learn by reviewing key structural and contingent factors that contribute to dynamic learning and catch-up. Rejecting both the 'one-size-fits-all' approach and the agnosticism that all nations are unique and different, it uses historical as well as firm-, industry-, and country-level evidence and experiences to identify the sources and drivers of successful learning and catch-up and the lessons for late-latecomer countries.
Authored by eminent scholars, the volume aims to generate interest and debate among policy makers, practitioners, and researchers on the complexity of learning and catch-up. It explores technological learning at the firm level, policy learning by the state, and the cumulative and multifaceted nature of the learning process, which encompasses learning by doing, by experiment, emulation, innovation, and leapfrogging.
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Arkebe Oqubay | Kenichi Ohno
How Nations Learn
Technological Learning, Industrial Policy, and Catch-up
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06/2019
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Persons
Arkebe Oqubay is a Senior Minister and Special Adviser to the Prime Minister of Ethiopia and has been at the centre of policymaking for over twenty-five years. He is a research associate at the Centre of African Studies in the University of London, and holds a PhD in development studies from SOAS, University of London. He is the former mayor of Addis Ababa and winner of the ABN Best African Mayor of 2006, and finalist for the World Mayor Award 2006. He is a recipient of the Order of the Rising Sun, Gold and Silver Star and serves as board chair of several leading public organizations and international advisory boards. His work includes Made in Africa: Industrial Policy in Ethiopia (OUP, 2015); African Economic Development: Evidence, Theory, and Policy (OUP, 2019); and China-Africa and an Economic Transformation (2019, OUP). He was recognized as one of the 100 Most Influential Africans of 2016, and a 'leading thinker on Africa's strategic development' by the New African.
Kenichi Ohno is a Professor at the National Graduate Institute for Policy Studies, Tokyo. He has previously worked at the International Monetary Fund and taught at the University of Tsukuba and Saitama University. He works closely with the Japanese government in designing international cooperation strategy. He has advised the Vietnamese government since 1995 and has done policy research in over twenty countries in Asia and Africa focusing on industrialization, policy learning for catch-up, the development experiences of Japan latecomers, and international comparison of industrial policy quality. His books include The History of Japanese Economic Development (Routledge, 2018), Learning to Industrialize (Routledge, 2013), and Eastern and Western Ideas for African Growth (Routledge, 2013). He received the Presidential Medal for Friendship from the Vietnamese government and the Japanese Foreign Minister Award for contributing to Japan-Vietnam economic relationship.
Content
- Cover
- How Nations Learn: Technological Learning, Industrial Policy, and Catch-up
- Copyright
- Foreword
- Acknowledgements
- Contents
- List of Figures
- List of Tables
- List of Contributors
- 1 Technological Learning, Industrial Policy, and Catch-up: Introduction
- 1.1 Background to How Nations Learn
- 1.2 Aims, Motivation, and Focus
- 1.3 Themes and Analytical Perspectives
- 1.4 Structure of the Book
- Acknowledgement
- References
- PART I CONTEXT AND PERSPECTIVES
- 2 Catch-up and Constraints in the Twentieth and Twenty-first Centuries
- 2.1 Introduction
- 2.2 The Eclipse of Development Economics and the Rise of Neoliberalism
- 2.3 Catch-Up?
- 2.4 Global Value Chains (GVCs) Now Structure Production and Trade
- 2.5 Rising Dependence on Capital-Goods Imports and on Highly Monopolized Patentable Knowledge
- 2.6 Finance is in the Driving Seat of the World Economy and Exposes EDEs to Volatile Growth
- 2.7 Conclusion
- References
- 3 Learning from East: Asia Catch-up and the Making of China's Developmental State
- 3.1 Introduction
- 3.2 Elements of the East Asian Developmental State
- 3.3 China: Transition to Plan-Rational State
- 3.3.1 Industrial and Financial Sector Reforms
- 3.3.2 Open-economy Industrial Policy Features
- 3.4 Conclusion
- References
- 4 Catch-up and Mission-oriented Innovation
- 4.1 Introduction
- 4.2 From Technological Feats to Wicked Problems
- 4.3 Key Lessons from Mission-Oriented Policies
- 4.3.1 From Picking Winners to Picking the Willing
- 4.3.2 From Fixing Markets to Actively Co-shaping
- 4.3.3 From Fearing Failure to Welcoming Experimentation
- 4.3.4 From a Focus on Quantity of Finance to a Focus on the Quality
- 4.3.5 Engagement
- 4.3.6 From De-risking to Sharing Both Risks and Rewards
- 4.3.7 In Sum, a New Approach to Policymaking
- 4.4 Choosing and Implementing Mission-Oriented Policies
- 4.5 Conclusion: A Practical Approach to Implementing Mission-Oriented Innovation Policies
- References
- PART II EMPIRICAL PERSPECTIVES
- 5 Meiji Japan: Progressive Learning of Western Technology
- 5.1 Introduction
- 5.2 Rapid Industrialization and Westernization
- 5.3 Historical Background
- 5.4 Early Attempts at Technology Learning
- 5.5 Foreign Experts and Turnkey Projects
- 5.6 Engineering Education
- 5.7 Machinery Import and Foreign Partnership
- References
- 6 Catch-up and Learning in Taiwan: The Role of Industrial Policy
- 6.1 Introduction
- 6.2 Factors Favourable to Development
- 6.3 Economic Recovery and Import Substitution in the 1950s
- 6.4 Policy Reform and the Start of Export-Led Growth in 1958
- 6.5 Industrial Upgrading
- 6.6 Entry into High Tech
- 6.7 Liberalization and Globalization
- 6.8 Recent Slowdown and Prospects
- 6.9 Industrial Development Trends
- 6.10 The Role of Small Firms in Taiwan's Development
- 6.11 Comparison with South Korea
- 6.12 Policy Lessons
- References
- 7 The Origin of Absorptive Capacity in Korea: How Korean Industry Learnt
- 7.1 Introduction
- 7.2 Foreign Technology Acquisition Trends in Korea
- 7.3 Building Absorptive Capacity through Assimilation of Foreign Technology
- 7.3.1 Know-how Only
- 7.3.2 Know-how and Patent Rights
- 7.3.3 Patent Rights Only
- 7.4 Data and Econometric Analysis in Chung and Lee (2015)
- 7.4.1 Data and their Sources
- 7.4.2 Estimation Method and the Main Results
- 7.5 Concluding Remarks
- References
- 8 China: Learning to Catch up in a Globalized World
- 8.1 Introduction
- 8.2 Kicking off the Change
- 8.2.1 A Starting Point
- 8.2.2 Initial Experimentation
- 8.2.3 Starting Export Processing in Shenzhen
- 8.3 Accelerated Integration with the World Through FDI
- 8.3.1 Opening Shanghai
- 8.3.2 FDI Inflow and Export Growth after the 1990s
- 8.4 Paradigm Shift and Institutional Reform
- 8.5 What can be Learned from China's Catch-up Learning Experience?
- 8.6 Conclusion
- References
- 9 Learning and Catch-up in Singapore: Lessons for Developing Countries
- 9.1 Introduction to Learning and Catch-up in Singapore
- 9.2 The Neighbourhood Demonstration Effect
- 9.3 Singapore's Track Record: Strong Budgetary Discipline and an Enabling Efficient Civil Service
- 9.4 Prudent and Sustainable Budgeting
- 9.5 The Enabling, Efficient Public Sector and the Art of Public Policy Management
- 9.6 Public Policy Formulations Pioneered by the Old Guard
- 9.6.1 Pragmatism in Public Policy Formulation-No Relianceon Textbook Cases
- 9.6.1.1 Case Study: Public Housing, Asset Ownership, and Social-political Stability
- 9.6.2 Industrial Upgrading to Connect Singapore to the Global Trading System
- 9.6.2.1 Case Study: Strategic Industrial Upgrading towards a Knowledge-based Economy
- 9.6.3 Long-term Planning for an Inclusive, Productive, Environmentally Friendly, and Socially Harmonious Cosmopolitan Singapore
- 9.6.4 Planning for a Comprehensive Long-term Vision
- 9.6.5 Zero Tolerance of Corruption
- 9.7 Preserving a Democratic Electoral System Allowing for Checks and Balances
- 9.8 Singapore's Strategic Transformation to a Knowledge-Based, Innovation-Driven, and High Value-Added Economy
- 9.9 Industry Cluster Development Policies: Singapore's MNC Leveraging Strategy
- 9.10 The Nation's Pillars of Industrialization: Successful and Not-so-successful Case Studies
- 9.10.1 Case Study of a Successful Industry Cluster: Jurong Island Chemical Hub
- 9.10.2 Case Study of a Not-so-successful Industry Cluster: Biomedical Sciences in Singapore
- 9.11 Singapore Government Updates to Strategic Economic Roadmaps
- 9.12 Lessons for Developing Countries
- References
- PART III PATHWAYS TO LATE-LATE DEVELOPMENT
- 10 Industrial Policy and Learning Lessons from Latin America
- 10.1 Introduction
- 10.2 A Region in Slow Motion in a Fast-Changing World Economy
- 10.3 Industrial Policies Struggle to be Pivotal in National Development Strategies
- 10.4 When the Region Takes a Head Start and Learns, Smart Policies are Behind it
- 10.4.1 CORFO: The Importance of Renewing Routines
- 10.4.2 AGESIC: Creating an Agency That Fosters Change
- 10.4.3 The Automotive Industry in Mexico: Learning from FDI Is Possible, But Home-grown Brands Are Needed to Be Prepared for the Future
- 10.5 Conclusions
- Acknowledgements
- References
- 11 The Journey of Ethiopian Airlines: Technological Learning and Catch-up in Aviation
- 11.1 Gate Open: An Introduction to Ethiopian Airlines
- 11.1.1 Learning and Catch-up for Late-latecomers
- 11.1.2 Ethiopian Airlines against the Odds
- 11.2 Take Off: The Rise of the Ethiopian Aviation Industry (1946-75)
- 11.2.1 Partnership with TWA: The Genesis
- 11.2.2 Ethiopianization Strategy
- 11.2.3 Capabilities and Operational Performance
- 11.2.3.1 Technology Selection
- 11.2.3.2 Capability-building Facilities
- 11.2.3.3 Operational and Marketing Capability
- 11.3 Cruising Altitude: Sustaining Corporate Independence in Turbulent Times, 1975-2000
- 11.3.1 Crisis Management and Survival, 1975-91
- 11.3.2 Transition, Lingering Crisis, and Modest Growth (1991-2000)
- 11.4 Upgrading: High Growth and Catching up in the Twenty-First Century, 2001-18
- 11.4.1 A New Chapter in Twenty-first-century African Aviation
- 11.4.2 Modernizing the Fleet and Developing Technological Capability
- 11.4.3 Improving Organizational Capability and Process
- 11.4.3.1 New Structure and Capability
- 11.4.3.2 Continuous Process Improvement and Performance
- 11.4.4 Building Technical Capability and Skill Formation
- 11.5 Air Miles: Implications for Policy and Technological Capability and Lessons for Late-Latecomers
- 11.5.1 The Government and EAL's Catch-up
- 11.5.2 The Dynamics of Technological Learning
- 11.6 A Safe Flight: Conclusions from the Journey of Ethiopian Airlines
- Acknowledgements
- References
- 12 Learning to Catch up in South East Asia
- 12.1 Introduction
- 12.2 Asian Countries and the Global Dynamics of Economic Catch-up
- 12.2.1 Catch-up Performance Index
- 12.2.2 Data and Results
- 12.2.3 Sources of Economic Catch-up
- 12.3 Vietnam's Nation Learning for Economic Catch-up
- 12.4 Nation Learning to Catch up: A framework for Action
- 12.4.1 Strategic Focus
- 12.4.2 Three Main Actors
- 12.4.3 The Role of Government in Driving Nation Learning
- 12.4.3.1 Making Strategic Choices
- 12.4.3.2 Building High-performing Institutions and Coordination Capabilities
- 12.4.4 Nation-learning Capability
- 12.5 Conclusion
- Appendix 12.1: Catch-up performance of 167 countries (sorted by CUPI score in decreasing order)
- Appendix 12.2: Sources of catch-up performance index (CUPI)
- References
- 13 Learning to Catch up in Africa
- 13.1 Introduction to Learning and Catch-up
- 13.2 Learning and Catch-Up In A New Export Industry
- 13.2.1 The Rise of a New Export Industry
- 13.2.2 Drivers of Learning and Catch-up
- 13.3 Learning in an Import-Substitution Industry
- 13.3.1 Slow Start but Rapid Growth and Learning
- 13.3.2 Learning Framework in the Cement Industry
- 13.3.3 The Role of Industrial Policy and Policy Learning
- 13.4 Building Ethiopia's Absorptive Capacity
- 13.4.1 National Learning System
- 13.4.1.1 The Expansion of Universities
- 13.4.1.2 Reform of Engineering Education
- 13.4.1.3 New Structures and Institutions
- 13.4.1.4 University-Industry Linkage and Research Capability
- 13.4.1.5 The Remaining Challenges
- 13.4.2 Industrial Hubs as Instruments of Learning
- 13.4.2.1 Ethiopia's Learning Approach to Industrial Hubs
- 13.4.2.1.1 Emulation and New Learnings
- 13.4.2.1.2 Learning by Doing and Experiment
- 13.4.2.2 Challenges of Absorptive Capacity and Emerging Issues
- 13.5 A Synthesis and Conclusions
- References
- 14 How Nations Learn: Implications for Latecomers and Pathways to the Future
- 14.1 The Dynamics of Technological Learning
- 14.1.1 Dimensions of Dynamic Learning
- 14.1.1.1 Technological and Policy Learning: The Two Dimensions
- 14.1.2.2 Intensity of Learning and its Multiple Sources
- 14.2 Dimensions and Trajectories of Catch-up
- 14.2.1 The Balance between Common Factors and Local Uniqueness
- 14.2.2 Strategic Divergences and Diversity of Projects Diversity
- 14.2.2.1 Diversity of Strategies
- 14.2.2.2 The Diversity of Project Design and Execution
- 14.2.3 The Time Element and Changing Context
- 14.2.4 The Passion for Catch-up
- 14.3 Industrial Policy and Manufacturing as Prime Drivers of Learning and Catch-up
- 14.4 Catch-up and Policy Space in the Twenty-First Century
- Acknowledgements
- References
- Name Index
- Subject Index
