Toward a knowledge-based theory of economic catch-up

Abstract

Introduction This chapter synthesizes the findings on catching up at the firm, sector, and country levels, with a view to presenting a comprehensive, knowledge-based theory of catching-up growth that takes a neo-Schumpeterian perspective. We have defined a number of key variables that capture different aspects of innovation systems adopted in catching-up efforts, and have measured these at the firm, sector, and country levels. We have also found that catching-up can be analyzed and explained well using these variables across those levels, and that there is a level of consistency in the three levels. One of the main contributions of this study is the examination of the most important details of innovation systems adopted in each country and firm, and the determination of which aspects of technology are significant or insignificant at the firm, sector, and national levels. This chapter is organized as follows. First, we provide a summary of the findings of each chapter at the firm, sector, and country levels in section 6.2. Then, we synthesize these findings to suggest a theory of knowledge-based catching up in sections 6.3 and 6.4. Section 6.5 discusses the policy implications of the theoretical arguments in the preceding sections.