The dichotomy of development economics between market-driven and state-leddevelopment approaches has recently been complemented by a third strand whichfocus on knowledge and capabilities-based development models. Our paper aims tomake a first step towards a Comprehensive Neo-Schumpeterian theory...

Ownership and institutions are regarded as key determinants of firm performance. Using data of Chinese firms from 1998 to 2009, this study tests the separate and interacting effects of ownership and institutions. The divergent performance of firms can be explained from the heterogeneous...

East Asian economies had shown remarkable performance of high growth and low inequality, thereby forming a separate East Asian capitalism group within the VoC typologies. There are strong signs that these economies have recently been converging to the LME group, featuring low growth and high...

One of the key issues of latecomer economic development is whether they should follow the path of forerunners or whether they should create a new or follow a different path of development. An emerging view (Lee and Lim, 2001; Lee, 2013) is that latecomers do not simply follow advanced countries’...

The current chapter presents a Schumpeterian and capability-based view of industrial policy, reflecting upon its practices in Korea over the last several decades. Given that it is typical for many developing countries to suffer from capability failure, industrial policy should go beyond...

This chapter examines the implications of Korea’s industrial policy and financing for African economies that are trying to build their industrial bases. It considers industrial policy as essentially building the capabilities of private firms to sustain long-term economic growth and looks at...

This paper utilizes the Korea Innovation Survey data to find out the determinants of industry-university and industry-GRI (IUG) cooperation and its impact on firm performance. We find first that among determinants of IUG cooperation, traditional firm characteristics variables of sizes and R&D...

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...