• Analyses & Alternatives
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• v.7 no.2
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• pp.35-77
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• 2023

This study aims to solve the entangled loop between demographic transition (DT) and economic growth by analyzing cross-country data. We undertake a national-level group analysis to verify the compressed transition of demographic variables over time. Assuming that the LA (latecomer advantage) on DT over time exists, we verify that the DT of the latecomer is compressed by providing a formal proof of LA on DT over income. As a DT has the double-kinked functions of income, we check them in multiple aspects: early maturation, leftward threshold, and steeper descent under a contour map and econometric methods. We find that the developing countries (the latecomer) have speedy DT (CDT, compressed DT) as well as speedy income such that DT of the latecomers starts at lower levels of income, lasts for a shorter period, and finishes at the earlier stage of economic development compared to that of developed countries (the early mover). To check the balance of DT, we classify countries into four groups of DT---balanced, slow, unilateral, and rapid transition countries. We identify that the main causes of rapid transition are due to the strong family planning programs of the government. Finally, we check the effect of latecomer's CDT on economic growth inversely: we undertake the simulation of the CDT effect on economic growth and the aging process for the latecomer. A worrying result is that the CDT of the latecomer shows a sharp upturn of the working-age population, followed by a sharp downturn in a short period. Compared to early-mover countries, the latecomer countries cannot buy more time to accommodate the workable population for the period of demographic bonus and prepare their aging societies for demographic onus. Thus, we conclude that CDT is not necessarily advantageous to developing countries. These outcomes of the latecomer's CDT can be re-interpreted as follows. Developing countries need power sources to pump up economic development, such as the following production factors: labor, physical and financial capital, and economic systems. As for labor, the properties of early maturation and leftward thresholds on DTs of the latecomer mean that demographic movement occurs at an unusually early stage of economic development; this is similar to a plane that leaks fuel before or just before take-off, with the result that it no longer flies higher or farther. What is worse, the property of steeper descent represents the falling speed of a plane so that it cannot be sustained at higher levels, and then plummets to all-time lows.

• Journal of Technology Innovation
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• v.12 no.2
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• pp.1-19
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• 2004

This paper focuses on the significant issues of technological capability development of latecomer firms, and government policies enabling such firms to attain certain level of technological capability. The survey and case studies of manufacturing firms in Thailand were conducted to substantiate and investigate the process of technological capability development of latecomer firms. The analysis portrays a dynamic view of technological capability development that comprises three key elements namely strategic capability, internal capability, and external linkage capability. The paper, subsequently, discusses and suggests a tentative taxonomy of government policies and measures to support firms' technological capability development.

• Journal of East Asia Management
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• v.3 no.2
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• pp.43-64
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• 2022

Exploring innovations for latecomers to catch up has been a popular concern in industry and academia. Over the last decade, more and more East Asian latecomer firms have moved beyond imitation and are delivering innovative products and services to the market. However, the semiconductor latecomers from China have limited success in catching up with more mature semiconductor firms. Our study examines how semiconductor latecomers to break through the latecomer's dilemma by innovation and achieve catch-up. We use a single-case approach for the Semiconductor Manufacturing International Corporation (SMIC) vertical development process to analysis its innovation path of catching up. The study's results showed that SMIC relied on the government's policy and funding support, and based on the strategic endurance of entrepreneurs, it persisted in technology R&D investment and independent innovation for 20 years. SMIC finally smashed the dilemma of latecomers and successfully achieved catch-up. With these findings, we believe that the path of catching up innovation for semiconductor latecomers should be equipped with independent innovation of technology, strategic leadership of entrepreneurs and support of government policies. As these factors are combined, latecomer firms' position is expected to rise and catch-up will become visible. Our study contributes to some enlightenment on the innovation path for latecomers in China and global semiconductors to achieve their catch-up.

• Journal of Technology Innovation
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• v.13 no.2
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• pp.23-43
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• 2005

Industrial clusters are geographical concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions (for example, universities, standard agencies, and trade associations) that combine to create new products and/or services in specific lines of business. At present, the concept of industrial cluster becomes very popular worldwide, policy makers at national, regional and local levels and business people in both forerunner and latecomer countries are keen to implement the cluster concept as an economic development model. Though understanding of clusters and related promoting policies varies from one place to another, the underlying benefits of clusters from collective learning and knowledge spillovers between participating actors strongly attract the attention of these people. In Thailand, a latecomer country in terms of technological catching up, the cluster concept has been used as a means to rectify weakness and fragmentation of its innovation systems. The present Thai government aspires to apply the concept to promote both high-tech manufacturing clusters, services clusters and community-based clusters at the grass-root level. This paper analyses three very different clusters in terms of technological sophistication and business objectives, i.e., hard disk drive, software and chili paste. It portrays their significant actors, the extent of interaction among them and the evolution of the clusters. Though are very dissimilar, common characteristics attributed to qualified success are found. Main driving forces of the three clusters are cluster intermediaries. Forms of these organizations are different from a government research and technology organization (RTO), an industrial association, to a self-organised community-based organization. However, they perform similar functions of stimulating information and knowledge sharing, and building trust among participating firms/individuals in the clusters. Literature in the cluster studies argues that government policies need to be cluster specific. In this case, the best way to design and implement cluster-specific policies is through working closely with intermediaries and strengthening their institutional especially in linking member firms/individuals to other actors in clusters such as universities, government R&D institutes, and financial institutions.

• Journal of Energy Engineering
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• v.20 no.4
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• pp.267-277
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• 2011

The study looks at the development of new & renewable technology in a latecomer country, Korea. The main question is whether the development is driven by 'green demand' from the people or by the 'growth demand' from the industry. It also asks what are the characteristics of socio-technical constituency behind the development of new & renewable energy technology; growth-centered or environment-centered. It is found out that a 'New & renewable energy technology socio-techical constituency', consisted of NGOs, industry and government in the form of membership to New & Renwable Energy Policy Council of the government program, was established driving the development of new & renewable energy technology development in Korea. Yet, the coalition among them was based on 'the desire for growth' rather than 'the concern for environment'. The changes in authoritarian development state such as the adoption of governance approach to public decision-making process also contributed to the formation of the constituency.

• The Journal of the Korea Contents Association
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• v.15 no.5
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• pp.119-131
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• 2015

The rise of K-Pop in the latecomer environment is unusual. There is little research on K-Pop from the catch-up perspective though it would yield some insight into a strategic direction of creative industries in the latecomer environment. Thus, this study aims to compare the firm capability, market development, and product strategy of K-Pop firms with ones of manufacturing firms during the catch-up period. It reveals first that K-Pop firms developed project execution capability to carry out discrete projects effectively by adopting in-house (vertical) system in music production and increasing the size of firms. Second, they pursued global market and utilized the window of opportunities based on a proven music genre. Third, K-Pop firms pursued the incremental innovation in the product development. Since these characteristics have many similarities with the catch-up strategy in the manufacturing sector, Korean catch-up experience could provide valuable insight into the development of creative industries in Korea.

• Journal of Korea Technology Innovation Society
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• v.9 no.3
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• pp.435-450
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• 2006

As technological capabilities have enhanced, the patterns of innovation activities of latecomer firms changed to post catch-up mode. The purpose of this research is to provide conceptual frameworks for post catch-up mode of innovation activities, based on the case study on Korean mobile phone industry. It presents the possibilities of architectural innovation of latecomer firms, which is stimulated by the co-operative innovation activities between component suppliers and users from the initial stage of final product development.

• STI Policy Review
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• v.6 no.1
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• pp.36-53
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• 2015

The rise of latecomer countries across the world directs academic attention to their catching-up and innovation processof seizing technological opportunities and combining internal and external knowledge. Different from the developed economies as well as the newly industrialized economies, China presents a special innovation environment, wherein its technology regime, market opportunities, and institutions are complex and the globalization trend affects competition in a broader way. In thiscontext, we clarify and extend the framework of "secondary innovation". This framework describes the dynamics of those with relatively poor resources and capabilities in their efforts to capture the values of mature/emerging technology or business models by acquiringthem from across borders and then adapting to catching-up contexts. Such processes, differentiated from original innovation that involves the whole process from R&D to commercialization, has become a prevailing regime during paradigm shifts. In particular, unlike the traditional catch-up literature that focuses more on technology, the secondary innovation framework inclusively contains both technology and business model innovation, and puts forward the co-evolution between the two elements, which is more applicable to China's context. In accordance, we also provide implications towards fulfilling the goal of building an innovation-driven nation.

• Journal of Technology Innovation
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• v.14 no.1
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• pp.147-175
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• 2006

One of the biggest problems of Korean economy is polarization of firms for export and domestic demand and that of conglomerates and SME's achievement. One of the culprits lies weakness of intermediate industry such as machine tool. Since intermediate industry is important path where export performance affects domestic demand and whose actor usually is SMEs with high spill over effect in labor market. Especially, intermediate industry Is vulnerable because of industrial policy biased In backward linkage effect. However if a country fails to develop intermediate industry above some critical point, that country would fall in low-tech equilibrium without growth. In case of benign circle where final goods industry growth leads growth of intermediate industry and again it leads that of final goods industry, it can reach high-tech equilibrium. By contrast, in opposite case where in industrialization latecomer fails to link industries likewise above some critical point that country would fall in low-tech equilibrium without growth. Moreover, for several reasons, machine tool firms of Korea have difficulty in catching up technology above critical point. Firstly. Conglomerate demander neglects their product. Secondly, even after success of development overcoming difficulties they fail to get market share for response of dumping of foreign competitors. And the last one is patent litigation of foreign competitors that incapacitate the technology development. For these, Korean machine tool firms fell in 'middle-income country trap' itself, since they stuck in some extent when they technologically catch up. Consequently, for latecomer country in machine tool industry to leapfrog meaningfully policy support is necessary, Weak intermediate industry does not Induce domestic firms and remained fragile. Therefore, localization, policy should reflect condition of technological catch up more than before, in order to be effective and fruitful. There should be turning point over relationship between conglomerates, major demander of machine tool and SME's, for only with active purchasing of conglomerate Korean machine industry can grow.

• Bulletin of the Korea Photovoltaic Society
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• v.3 no.3
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• pp.56-61
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• 2017

With the appearance of the climate change concerns, energy transition to renewable energy is accelerating over the world. Korea, a latecomer to the renewable energy sector, has also been unable to avoid energy transition. The government is promoting strong goals for expansion of renewable energy. However, switching from stable and controllable conventional generation to intermittent and uncontrollable renewable generation will be a big challenge for the electric power industry. Korea Power Exchange(KPX), which is responsible for the planning and operation of the electric power industry in Korea, is trying to improve measures in various fields such as the implementation of real-time unit commitment and additional real-time markets in order to cope with the volatility and intermittency of renewable energy.