Abstract
The existing literature has not studied the role of basic research in industrial catch-up in developing countries in any depth. This article takes high-speed rail as a case study in order to show how basic research has helped the industry to master imported technology and produce secondary innovations. The role of government is important in terms of coordinating the process of technology importation, digesting imported technology and innovation. The role of the home market is also very important in an era of globalisation to promote innovation in this emerging industry.
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