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2018 | OriginalPaper | Buchkapitel

4. Catching up and Innovation in the Asia-Pacific: An Evolutionary Approach

verfasst von : Keiichiro Suenaga

Erschienen in: Innovation in the Asia Pacific

Verlag: Springer Singapore

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Abstract

In an analysis of an evolutionary approach to innovation Suenaga examines how several countries and firms in the Asia Pacific move from imitating developed countries to generating innovation? Neo-classical economics often assumes that only one production curve exists for the whole economy of a country, when actually there are various production curves depending on the industry, product, and process, and the introduction of a new production curve involves high risk. Innovative, risk-taking entrepreneurs are required for the introduction of a new production curve, even in developing countries. With reference to the production capability required to improve productivity, i.e., to shift the production curve upwards, when workers and technicians accumulate production experience, they develop increased expertise, resulting in improved productivity. Economies and firms in the Asia Pacific have realized technological changes by engaging not only in simple imitation but also in ‘creative imitation’ (Kim and Nelson 2000). An example involves adapting technologies to their environments and applying them to other industries. What is the relationship between innovation and the division of labour? Smith (1776: 9) points out the following three effects of the division of labour: (1) an increase in productivity, (2) saving time, and (3) the invention of machines. Smith’s discussion specifically concerns the division of labour in a workshop, however the division of labour between factories or industries also stimulates an increase in productivity and the invention of machines. The ideas of Smith and Schumpeter appear to contradict one another at first glance: Smith’s ‘division of labour’ and the ‘new combinations’ which Schumpeter regards as a key factor in economic development. Suenaga inquires whether the main factor involved in economic development is a ‘dividing’ or a ‘combining’ one? The views of Smith and Schumpeter are not contradictory he argues but complementary. Specialization in particular processes is made possible by the division of labour, yet the possibility of a new combination is also born during these processes, and this encourages a further division of labour by extending the market. Suenaga (2015a) refers to this pattern of economic development as ‘Smithian = Schumpeterian development.’

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Vorheriges Kapitel Comparing the National Innovation Systems in East Asia and Latin America: Fast Versus Slow

Nächstes Kapitel A Tale of Two Cities: Innovation in Singapore and Hong Kong

See Lee (2013) on the middle-income trap.

Therefore, catching up economically (where income levels catch up) is not the same as catching up technologically (where firms catch up in terms of technological capabilities).

The advantages of backwardness are closely related to issues of independence. How much a country attaches weight to independence depends on the country’s history, culture, and circumstances, and differs greatly according to the era. For developing countries, how to foster their own industries is important. When a country’s goal involves rapid industrial development, it may not consider independence important. Following the progress of globalization, the importance of the country as a framework is reduced. For the relationship between ‘economic independence’ and ‘priority on economic growth,’ refer to Nakamura (1999).

For social capabilities, see also Abramovitz (1995), Suenaga (1997).

See also Romer (1993), Krugman (1994), Suenaga (2002).

See also Baumol (1986), Fagerberg (1987), Fagerberg and Godinho (2006).

See Suenaga (2012a) for clarification of this and the next subsection.

See Akamatsu (1965: 129-130) for his concepts of the division of labour.

The order of the intra-industry vertical type and the intra-industry horizontal type is sometimes reversed, and both types are sometimes in progress simultaneously.

See also Baldwin and Clark (2000) on this point.

The importance of the division of labour varies according to the industry and the era.

Although a number of people have recently emphasized aspects of the division of labour such as fragmentation, outsourcing, off-shoring, unbundling, spin-offs, module clusters, open innovation, open source, intra-industry trade, vertical disintegration, selection and concentration, commodity chains, and OEM (Original Equipment Manufacturing), these concepts have a close relationship with the division of labour.

See the ‘market-friendly’ approach of the World Bank (1991).

See also Chang (2011) for a discussion of industrial policy.

The new production curve may coexist with the old one (‘co-evolution’), or may take the place of the old one (‘creative destruction’).

Westphal et al. (1985), Dahlman et al. (1987) classify technological capabilities into three categories: production, investment, and innovation capability. See also their books and Suenaga (2002) for the arguments in this subsection.

Many skills and activities required in reverse engineering have easily been transformed into activities called R&D as some countries have approached the technological frontier (Kim and Nelson 2000: 5).

However, when the division of labour takes place in distinct places, the effects of saving time vanish. On the other hand, time is saved by the invention of new transportation machines and the development of communications technology.

See, for instance, Suenaga (2010) on the relationship between the division of labour in the global semiconductor industry, and catching up and innovation in the East-Asian semiconductor industry.

See Suenaga (2015b) for clarification of this subsection.

For example, see Dasgupta and David (1994).

Whether these advances are improvements along a technological trajectory, or a shift in paradigm, with new technological trajectories emerging, depends on whether the ‘selected scientific knowledge’, which is the basis of the technological trajectory, is new (even if scientific knowledge precedes technological knowledge, or technological knowledge precedes scientific knowledge).

For clarification of ‘paradigm-sustaining innovation’ and ‘paradigm-disruptive innovation’, see Yamaguchi (2006).

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Titel: Catching up and Innovation in the Asia-Pacific: An Evolutionary Approach
verfasst von: Keiichiro Suenaga
Verlag: Springer Singapore
Buch: Innovation in the Asia Pacific
Print ISBN: 978-981-10-5893-6

Electronic ISBN: 978-981-10-5895-0

Copyright-Jahr: 2018
DOI: https://doi.org/10.1007/978-981-10-5895-0_4

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