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Promoting industrial development through technology policy: Lessons from Japan and China

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  • Fan, Peilei
  • Watanabe, Chihiro

Abstract

In this paper, we analyzed and compared how Japan and China's technology policies have contributed to their industrial development. Using numerical methods, we found that technological capability has contributed to both countries’ industrial development and upgrade in their peak-growth period. Further, the governments of both countries have intentionally promoted domestic technological capability by effective technology policies, balancing the import of foreign technology and indigenous development, and engaging business/private sector as a major force for improving technological capabilities.

Suggested Citation

  • Fan, Peilei & Watanabe, Chihiro, 2006. "Promoting industrial development through technology policy: Lessons from Japan and China," Technology in Society, Elsevier, vol. 28(3), pages 303-320.
    • Handle: RePEc:eee:teinso:v:28:y:2006:i:3:p:303-320
    DOI: 10.1016/j.techsoc.2006.06.002
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    References listed on IDEAS

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    1. Sumiya, Mikio, 2000. "A History of Japanese Trade and Industry Policy," OUP Catalogue, Oxford University Press, number 9780198292517.
    2. Liu, Xielin & White, Steven, 2001. "Comparing innovation systems: a framework and application to China's transitional context," Research Policy, Elsevier, vol. 30(7), pages 1091-1114, August.
    3. Alessandra Colecchia & Paul Schreyer, 2002. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 408-442, April.
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    Cited by:

    1. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Publications - Reports 18613, The World Bank Group.
    2. Bin Wang & Guangnan Zhang & James Peoples, 2016. "Decomposing productivity growth in Chinese manufacturing," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(11), pages 279-293, November.
    3. Benner, Maximilian, 2010. "Exportinduziertes Wachstum als Chance für die „nächsten Tiger“? [Export-led growth as a chance for the “next tigers”?]," MPRA Paper 40744, University Library of Munich, Germany.
    4. Annette Schminke & Johannes Van Biesebroeck, 2013. "Using export market performance to evaluate regional preferential policies in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 343-367, June.
    5. Peilei Fan & Guanghua Wan, 2006. "China's Regional Inequality in Innovation Capability, 1995-2004," WIDER Working Paper Series RP2006-153, World Institute for Development Economic Research (UNU-WIDER).
    6. Leonid Gokhberg & Ilya Kuzminov & Pavel Bakhtin & Elena Tochilina & Alexander Chulok & Anton Timofeev & Alina Lavrinenko, 2017. "Big-Data-Augmented Approach to Emerging Technologies Identification: Case of Agriculture and Food Sector," HSE Working papers WP BRP 76/STI/2017, National Research University Higher School of Economics.
    7. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
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    9. Shafaeddin, Mehdi, 2010. "The Role of China in Regional South-South Trade in Asia-Pacific: Prospects for industrialization of the low-income countries," MPRA Paper 26358, University Library of Munich, Germany.
    10. Gallagher, Kevin P. & Shafaeddin, M., 2010. "Policies for industrial learning in China and Mexico," Technology in Society, Elsevier, vol. 32(2), pages 81-99.
    11. Aurora Liu Genin & Justin Tan & Juan Song, 2022. "Relational assets or liabilities? Competition, collaboration, and firm intellectual property breakthrough in the Chinese high-speed train sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1895-1923, December.
    12. Kseniia Boiko, 2022. "R&D activity and firm performance: mapping the field," Management Review Quarterly, Springer, vol. 72(4), pages 1051-1087, December.
    13. Peilei Fan, 2008. "Innovation Capacity and Economic Development: China and India," WIDER Working Paper Series RP2008-31, World Institute for Development Economic Research (UNU-WIDER).
    14. Peilei Fan, 2011. "Innovation capacity and economic development: China and India," Economic Change and Restructuring, Springer, vol. 44(1), pages 49-73, April.
    15. Fan, Peilei, 2018. "Catching Up in Economic Transition: Innovation in the People’s Republic of China and India," ADBI Working Papers 809, Asian Development Bank Institute.
    16. Qiuyun Zhao & Zeyu Li & Zuoxiang Zhao & Jinqiu Ma, 2019. "Industrial Policy and Innovation Capability of Strategic Emerging Industries: Empirical Evidence from Chinese New Energy Vehicle Industry," Sustainability, MDPI, vol. 11(10), pages 1-17, May.
    17. Weimin Zhang & Wangrong Ma & Qiwei Chen, 2022. "Does Regional Development Policy Promote Industrial Structure Upgrading? Evidence from the Yangtze River Delta in China," Sustainability, MDPI, vol. 14(13), pages 1-21, July.
    18. Kevin P. Gallagher & Mehdi Shafaeddin, 2009. "Policies for Industrial Learning in China and Mexico," Trade Working Papers 22782, East Asian Bureau of Economic Research.
    19. Yang Yang & Jin Hong & Ge Song & Song Hong, 2017. "Technology policy, technology strategy and innovation performance: evidence from Chinese aircraft and spacecraft manufacturing," Science and Public Policy, Oxford University Press, vol. 44(5), pages 620-630.
    20. Guan, JianCheng & Yam, Richard C.M., 2015. "Effects of government financial incentives on firms’ innovation performance in China: Evidences from Beijing in the 1990s," Research Policy, Elsevier, vol. 44(1), pages 273-282.
    21. Yusuf , Shahid & Nabeshima, Kaoru, 2009. "Can Malaysia escape the middle-income Trap ? a strategy for Penang," Policy Research Working Paper Series 4971, The World Bank.
    22. Shafaeddin, Mehdi & Gallaher, Kevin, 2008. "Policies for Industrial Learning in China and Mexico: Neo-developmental vs. Neo-liberal approaches," MPRA Paper 11041, University Library of Munich, Germany.
    23. Hu, Wanjie & Dong, Jianjun & Hwang, Bon-Gang & Ren, Rui & Chen, Zhilong, 2022. "Is mass rapid transit applicable for deep integration of freight-passenger transport? A multi-perspective analysis from urban China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 490-510.
    24. Ahmadvand, Emad & Salami, Seyed Reza & Soofi, Jahanyar Bamdad & Tabatabaeian, Seyed Habibollah, 2018. "Catch-up process in nanotechnology start-ups: The case of an Iranian electrospinning firm," Technology in Society, Elsevier, vol. 55(C), pages 1-8.
    25. Urbig, Diemo & Procher, Vivien D. & Steinberg, Philip J. & Volkmann, Christine, 2022. "The role of firm-level and country-level antecedents in explaining emerging versus advanced economy multinationals' R&D internationalization strategies," International Business Review, Elsevier, vol. 31(3).

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