Why have East Asian countries grown so fast and the African countries so slowly for the last quarter century, even though many in the two groups at the beginning of the period had similar income levels? The authors provide an original, thoughtful and extremely insightful approach to this question by considering the experience of the two groups of countries in relation to the development of the information hardware industry. The results of this investigation are fascinating and thoroughly convincing. This volume makes a brilliant path breaking contribution to development economics and thoroughly deserves to be and will be widely read. Ajit Singh, University of Cambridge and University of Birmingham Business School, UK This book represents an important step forward towards understanding why some countries and regions are successful in catching-up with the rich part of the world while others tend to have great difficulties in doing so. It represents a very happy marriage between the literature on economic development and the literature on innovation and learning. At the end of the book a series of thoughtful recommendations for innovation policy are presented. This volume should be recommended to students and practitioners involved in understanding and promoting economic development. Bengt-Åke Lundvall, Aalborg University, Denmark and Tsinghua University, Beijing, China In recent years there has been a revolution in studies of economic development. The heart of successful development is seen as the growing mastery by firms of the technological, organizational, and managerial capabilities needed to be effective in a field of economic activity. In turn learning by firms is seen as strongly dependent upon the institutional structures that mold how they operate. And effective institutions are seen as often sectoral specific. The achievement of successful development thus requires that a nation put in place the appropriate institutions. This fine book is an important addition to this literature. Richard R. Nelson, Columbia University, US The authors demonstrate a good understanding of the theoretical scholarship which they have used competently in building up the intellectual foundations for analyzing the sources of uneven paths of development cross countries in Africa and Asia. Drawing on country data and experiences, the book offers evidence-based policy lessons relevant for learning to innovate and to catch-up in a complex process of industrial, technological and organizational changes at the firm- and sectoral-levels. This book deserves to be read by all those concerned with technology and development. Kande Yumkella, UNIDO This book focuses on what can be learned from the complex processes of industrial, technological and organizational change in the sectoral system of information hardware (IH). The IH innovation system is deliberately chosen to illustrate how sectors act as seeds of economic progress. Detailed firm-level studies were carried out in seven countries, three in Africa (Nigeria, Mauritius and South Africa) and four in Asia (China, Taiwan, Malaysia and Indonesia). Bringing together two important areas of research (the scholarship on technology, innovation and learning, and the development literature) this book creates a useful and novel framework for understanding development, and draws very strong policy lessons for latecomer countries. It will be of great interest to graduate students working on evolutionary economics, science and technology policy studies, as well as policymakers and research institutes.
Ever since Schumpeter's groundbreaking work there has been a plethora of new research seeking to extend the direction and dynamics of innovation. Using a rich account of detailed interviews, this book offers new evidence on how latecomers have successfully caught up and leapfrogged incumbent firms. Catching Up and Leapfrogging: the new latecomers in the integrated circuits industry explores how technological transitions affect latecomer catch-up strategies, and vice versa, in a high technology industry. It looks to the East Asian latecomers who, towards the end of the twentieth century, pioneered a new pathway through organizational change by specializing in the key production stages of integrated circuits and pushing technologies further. This volume assesses how latecomer resource acquisition strategies have varied alongside structural industry changes and evaluates the mechanisms through which firms started life as technology followers and rose to become technology leaders. Xiao-Shan Yap and Rajah Rasiah present a unique story about how firm strategies evolve from the catching up phase to the leapfrogging phase, captured from the accounts of managers on the ground. It is the first time firm-level strategies have been systematically analysed to describe twenty-first century strategic management in the integrated circuits industry in particular, and the high tech industry in general. The evidence and analysis in this book offers insights for chief executive officers, policy-makers and researchers to revisit existing approaches to the theory of catching up and leapfrogging.
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