This book explores how small nations can mobilise and use productive activities to generate inclusive growth and rapidly move up the economic ladder. In this study, Dr. Wong explores how Korea and Taiwan came to balance between commanding critical technological competencies and driving inclusive-economic agendas and ultimately culminates decades of moving up the value chain for the two Asian dynamos. In a world dominated by superpowers, Dr. Wong demonstrates how agile, nimble mid-sized economies can move fast, innovate and achieve post industrial catch-up development. This book will interest scholars of the Asian manufacturing sector, those with an interest in the role semiconductors play in the global economy, and scholars of Asian development.
Author(s): Chan-Yuan Wong
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 223
City: Singapore
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Acknowledgements
Contents
Acronyms
List of Figures
List of Tables
1 Introduction
Background
Theoretical Foundation
References
Part I Macro-Meso Level of Analysis
2 An Overview of Industrial Catch-Up Strategies
Background
Catch-Up Industrialization
The Flying Geese Model and Its Unravelling
The Leapfrogging and Path-Creating Model for Latecomers
South Korea: Picking-Winners-Cum-Leapfrogging Approach
Taiwan: Evolutionary Targeting with the Path-Creating Approach
What’s After Korea-Taiwan Approaches: Mixed-Mode Model and Policy Learning of Latecomers
Malaysia: FDI-Leveraging with Policy Learning Approach
How South Korea and Taiwan Did It
What Can We Learn from the Case of Malaysia?
Remarks
References
3 Driving Inclusive Growth in (Post) Industrial Catch-Up Era of Korean Economy
Background
Inclusion, Institution and Development
Why the Case of Korea?
Narrative Framework
Process of Transition Towards Inclusive Growth
Pre-condition Phase (1960s–1970s)
Poor Rural Policies and Saemaul Movement
HCI and Mitigating Industrial and Economic Concentration of Power
Catching-Up Phase (1980s–1990s)
Budget for Education and People’s Share
Social Insurance and Security Schemes
Supports for Productive SMEs
Post Catching-Up Phase (2000–Now)
Support for Technology-Based SMEs
Remark
References
4 Achieving Virtuous Cycle Development in Post Industrial Catch-Up Era of Taiwan Economy
Background
Narrative Framework
Transformational Trajectories of Taiwan
Interventions to Achieve Pre-emergence Settings: Establishing Macro-Institutional Fundamentals (1960s to Mid-1970s)
Preventing Directionality Failure Through Professional Appointments
Reducing Coordination Failure by Promoting Investment
Avoiding “Demand Articulation Failure” by Targeting Productive Sectors
Interventions to Attain Industrial Emergence Settings: Building a Multi-agent Structure and Institutional Entrepreneurship (Mid-1970s to 1990s)
Addressing Directionality Failure: Overseas Returnees Initiating the Industrial Transition
Addressing Coordination Failure by Empowering Institutional Entrepreneurs for Industrial Upgrading
Addressing Reflexivity Failure by Building Domestic Technological Capabilities and Spawning New Areas of Specialization
Addressing Demand Articulation Failure by Networking and Clustering
Virtuous Cycle Development: Initiating Platforms to Develop Industrial-Level Niches (Since the 2000s)
Addressing Directionality Failure by Diversifying and Extending Industrial Technologies: Configuration of a New Industrial Structure
Initiating Collaboration Platforms: Measures for Coordination, Reflexivity and Demand Articulation Failures
The Three-Phase Policy Targeting Model
Phase 1: Achieving Pro-poor Growth
Phase 2: Achieving Pro-domestic Growth in High-Tech Industries
Achieving Pro-Niche Growth: Multi-stakeholder Deliberation
Remarks
References
5 Post Industrial Catch-Up Public Research Institutions: The Cases of ITRI of Taiwan and KIST of Korea
Background
Narrative Framework
Comparative Case Study Framework
Organizational Dynamics Analysis
Comparative Analysis Between ITRI and KIST
The Case of ITRI
The Case of KIST
ITRI and KIST Compared
Remark
References
Part II Meso-Micro Level of Analysis
6 Evolution of Two Industrial Districts: The Cases of Hsinchu of Taiwan and Suwon of Korea
Background
Narrative Framework
Basic Profile and Origins of the Two Regions
Overview
Hsinchu
Suwon
Summary
Methodology: Investigating the RIS Using Patent Data
Empirical Analysis
Persistent Difference: Concentration
Similar Trend but Different Degree 1: Localization and Intra-Regional Collaboration
Similar Trend but Different Degree 2: Science-Based Innovation and U–I Linkages
Similarity of Suwon and Hsinchu: Technological Diversification
Persistence, Transformation and Upgrading: Core Firm vs. Region
Remark
Appendix
References
7 Detouring Route of SMEs in Post Catching-Up Conditions: Context and Dilemmas Behind the Quest for Science-Based Business Model Innovation
Background
Narrative Framework
The Two Cases
The Case of Chiao Fu Enterprise
The Case of Argox Information Co., Ltd.
Remark
References
Index
