The Rise of Technological Power in the South by Xiaolan Fu, Luc Soete, eds.

By Xiaolan Fu, Luc Soete, eds.

This publication explores the drivers of technological upgrading and catch-up within the rising economies, paying particular consciousness to expertise and innovation rules, nationwide innovation structures, the position of overseas direct funding and small and medium enterprises. It provides practical implications for different constructing nations

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A full assessment requires further econometric, classificatory and survey research, followed by interdisciplinary interpretation. The way forwards must therefore be to develop a proper set of indicators to monitor the changes in innovation capacities, especially those in the developing countries. 2 Policy, strategy and catch-up: Country case studies This part consists of 3 papers analysing the role of innovation policy and strategy in the technological catch-up process of the emerging economies using in-depth country case studies.

China was able to do this because it was an attractive location for FDI. Initially the attractiveness was its low labour costs for export-oriented FDI. Subsequently it was the lure of the very large and rapidly growing domestic market. Both of these gave the government strong negotiating powers with respect to FDI. 13 This greatly helped domestic firms to develop technological and management capability. For example, in the automotive industry the government managed to force both Honda and Toyota to do joint ventures with the same Chinese manufacturer.

Balasubramanayam, V. , M. Salisu, D. Sapsford (1996), ‘Foreign direct investment and economic growth in EP and IS countries’, Economic Journal, 106(434), 92–105. Department of Science and Technology (DST) (2007), ‘Innovation towards a knowledge-based economy. Ten-year plan for South Africa (2008–2018)’, Draft. Pretoria: DST. 10 July. Kaplinsky, R. ed. (2006), ‘Asian Drivers: Opportunities and Threats’, IDS Bulletin, 37 (1). Lall, S. and S. Urata (2003), ‘Introduction and overview’, in S. Lall and S.

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