Schumpeterian Analysis of Economic Catch-up
Knowledge, Path-Creation, and the Middle-Income Trap

A fresh analysis of the secrets of Asian economic success and how other countries can escape the 'middle-income' trap.

Keun Lee (Author)

9781107042681, Cambridge University Press

Hardback, published 31 October 2013

298 pages, 21 b/w illus. 43 tables
22.9 x 15 x 2 cm, 0.56 kg

'The book presents an original analysis of the catch-up processes pursued by Korea and Taiwan (with a discussion extended to China and India) demonstrating (using patent data analysis) that successful catch-up involves strong attention to targeted knowledge capture and build-up of capabilities. The argument is that catch-up is always strategic, in that there must be smart choices made over which technologies to target, and the role of what are called high, middle and low roads. It is sure to become a classic in the field.' John Mathews, Macquarie University, and author of Tiger Technology

One of the puzzles about why some countries have stronger economic growth than others revolves around the so-called 'middle-income trap', the situation in which a country that has grown strongly gets stuck at a certain level. In this book, Keun Lee explores the reasons why examples of successful catching-up are limited and in particular, why the Asian economies, including China, have managed to move, or are moving, beyond middle-income status but economic growth has stalled in some Latin American countries. This is one of the first studies to demonstrate using patent analysis that the secret lies in innovative systems at the firm, sector and country levels which promote investment in what the author calls 'short-cycle' technologies and thereby create a new path different from that of forerunning countries. With its comprehensive policy framework for development as well as useful quantitative methods, this is essential reading for academic researchers and practitioners.

Foreword John A. Mathews
Preface
Part I. Introduction and Perspectives: 1. Introduction
2. Knowledge as a key factor for economic catch-up
Part II. Empirical Analysis at Three Levels: 3. Knowledge and country-level catch-up
4. Knowledge and sector-level catch-up: Asia versus Latin America
5. Knowledge and firm-level catch-up: Korean versus US firms
Part III. Toward a Theory and How to Escape the Trap: 6. Toward a knowledge-based theory of economic catch-up
7. How to build up technological capabilities to enter short-cycle technology sectors
8. Catching-up and leapfrogging in China and India
Part IV. Technological Turning Points and Conclusion: 9. Hypothesizing a theory of technological turning points
10. Summary and concluding remarks
Appendix tables
Notes
Bibliography
Index.

Subject Areas: International business [KJK], Development economics & emerging economies [KCM], Economic growth [KCG]