This paper compares market, system, and capability failures as a justification for industrial policy, to argue that capability failure is most serious and unique in developing countries. It identifies failure of technological capability as the source of the middle-income trap. For a developing...

This paper proposes a “capability-based view” on the Korean or Asian experience in catching-up development. This approach may be considered as an extension of technology-based view but want to keep distance from the government-market dichotomy as it has more sound micro-economic foundation....

This paper discusses several issues regarding the barriers and opportunities for technological catch-up by the late-comer countries and firms. As one of the barriers to technological catch-up, the paper emphasizes the uncertainty involved with the third stage of learning how to design. The...

This paper has examined the leapfrogging thesis with the case of catch-up in digital TV by the Korean firms. Despite the disadvantages implied by the technological regime of digital TV and the risks facing early entrants in trajectory choice and initial market formation, the Korean firms had...

Recent development of an institution-based theory of corporate diversification has uncovered a diversification premium in emerging economies, suggesting that some business group-affiliated companies may outperform competing firms not affiliated with business groups. Is the diversification...

There is a great unmet need for health technologies to address diseases of the poor in developing countries. At the same time, there is a rapidly growing capability to undertake health innovation in many developing countries (Innovative Developing Countries - IDCs). The more advanced IDCs have...

This paper argues that the course and outcome of the post-1993 financial reform in Korea were largely influenced by the interest politics of the most powerful interest group in Korea, chaebols, and thus an examination of their influence is essential to understanding the cause of Korea’s...

This study considers the shipbuilding industry to explain the successive changes in leadership from the Schumpeterian perspective. The window of opportunity for Japan to forge ahead of the UK was the arrival and employment of new technologies, a method referred to as welding block. The Japanese...

The telecommunication system industry has long been dominated by the Swedish giant, Ericsson. Huawei, a newly emerged firm from China, entered the industry, grew rapidly, and finally overtook Ericsson in terms of sales in 2012. Given the rarity of this phenomenon, this study seeks to explain how...

Using bilateral trade data of countries from 2000 to 2007, this paper contributes to the empirical literature on the role of intellectual property rights (IPRs) in global trade. The existing literature has focused on how IPRs in the destination country affect exports from a source country. In...