Korea and the BICs (Brazil, India and China) : Catching Up Experiences

This paper tests a neo-Schumpeterian model with industry-level data to analyze how Brazil, India, and China are catching up with South Korea s technological frontier in a globalized world. The paper validates Aghion et al. s inverted-U hypothesis t...

Full description

Bibliographic Details
Main Authors:	Chandra, V., Osorio-Rodarte , I., Primo Braga, C. A.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ANTITRUST AUTOMOBILES BANKING BENCHMARK BENCHMARKING BUSINESS CAPABILITIES CAPABILITY CHEMICAL CLOSED ECONOMY COLLABORATION COMPARATIVE ADVANTAGE COMPETITION COMPETITION POLICY COMPETITIVE EDGE COMPETITIVENESS CONSULTANT CONTENT COVARIANCE MATRIX CREDIT DATA DATA LIMITATIONS DATABASE DEBT DEVELOPMENT DEVELOPMENT POLICY DISCUSSION DRIVERS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC RENTS ECONOMIC THEORY ECONOMY EFFECTS EFFICIENCY ELECTRICAL SOURCE ELECTRONICS INDUSTRY EMPLOYMENT EQUIPMENT EXOGENOUS VARIABLES EXPORTS FINANCE FINANCIAL CRISIS FOREIGN COMPETITION FOREIGN TRADE GDP GDP PER CAPITA GLOBAL COMPETITIVENESS GLOBAL MARKET GLOBAL MARKETS GOODS GOVERNMENT POLICIES GOVERNMENT REGULATIONS GROWTH RATE GROWTH STRATEGY GROWTH THEORY HUMAN CAPITAL HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT HUMAN RESOURCES IDEAS INCENTIVES INCOME INCOME LEVELS INDUSTRIAL DEVELOPMENT INDUSTRIAL RESEARCH INDUSTRIAL STRUCTURE INDUSTRIALIZATION INDUSTRY INDUSTRY SCOREBOARD INFORMATION INNOVATION INNOVATION POLICIES INNOVATION POLICY INNOVATION STRATEGIES INNOVATION STRATEGY INNOVATIONS INPUTS INSTITUTIONS INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY PROTECTION INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL STANDARDS INTUITION INVESTMENT IRON LABOR LABOR FORCE LABOR PRODUCTIVITY LAGS LAW LEADING LEARNING LICENSE MACROECONOMIC STABILITY MANAGEMENT MANUFACTURING MANUFACTURING INDUSTRIES MARKET COMPETITION MARKET ECONOMIES MARKET PLACE MARKET SHARE MARKETS MEMORY MEMORY CHIPS MIDDLE INCOME COUNTRIES MONITORING MONOPOLY MONOPOLY RENTS NATURAL RESOURCE NETWORK OPEN ACCESS ORGANIZATIONS OUTCOMES PATENTS PAYMENTS PER CAPITA INCOME PER CAPITA INCOMES PETROLEUM REFINERIES POLICIES PRICE PRICES PRIVATE INVESTMENTS PRIVATE SECTOR PROCESS PROCUREMENT PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTS PROFITS PROPERTY RIGHTS R&D RENTS RESEARCH RESULT RESULTS RISK SEEDING SEMICONDUCTORS SOFTWARE STANDARDS TARGET TARIFF BARRIERS TAX INCENTIVES TAX SUBSIDIES TAX SUBSIDY TAXES TECHNICAL SKILLS TECHNOLOGICAL INNOVATION TECHNOLOGIES TECHNOLOGY TECHNOLOGY DEVELOPMENT TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE REFORMS TRAINING TRANSITION ECONOMIES TRENDS UNDERSTANDING USES VALUE VALUE ADDED VARIABLES VARIETY WEB WORLD ECONOMY WORLD TRADE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091027140420 http://hdl.handle.net/10986/4292

Description
Summary:	This paper tests a neo-Schumpeterian model with industry-level data to analyze how Brazil, India, and China are catching up with South Korea s technological frontier in a globalized world. The paper validates Aghion et al. s inverted-U hypothesis that industries that are closer to the technological frontier innovate to escape competition while longer distances discourage innovating. It suggests that for effective catching up, distance-shortening (or innovation-enhancing) policies may be a necessary complement to liberalization. South Korea and China combined a variety of distance-shortening policies with financial subsidies to promote high tech industries and an export-led growth strategy. Post-liberalization, they leveraged swift competition to spur catch-up. In comparison, Brazil, which was as rich as South Korea, and India, which was as rich as China in 1980, are catching up more slowly. Import-substitution industrialization strategies saddled Brazil and India with a large anti-export bias, and unfocused attention to innovation-enhancing policies dampened global competitiveness. Post liberalization, many of their industries were too far behind the technological frontier to effectively benefit from competition. The catch-up experiences of Brazil, India, and China with South Korea illustrate that distance from the technological frontier matters and that the design of country-specific distance- shortening policies can be an important complement to trade liberalization in promoting catching up with richer countries.

Korea and the BICs (Brazil, India and China) : Catching Up Experiences

Similar Items