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Catching-up national innovations systems (NIS) in China and post-catching-up NIS in Korea and Taiwan: verifying the detour hypothesis and policy implications

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  • Jongho Lee
  • Keun Lee

Abstract

This study addresses the relationship between national innovation systems (NIS) and economic catch-up by latecomer economies, such as China, South Korea, and Taiwan. Contemporary China is found to also specialize in short cycle technologies, similar to Korea or Taiwan in the mid-1980s and 1990s, featuring opposite attributes from mature NIS. By contrast, Korea and Taiwan are moving away from short-cycle technologies into long cycle technologies-based sectors, and their NIS are becoming similar to those of advanced or mature NIS. Thus, this study verifies the so-called ‘detour’ hypothesis that a successful catching-up economy can follow a technological detour of first specializing in short cycle sectors and only later turning into more challenging or long cycle technology-based sectors. In addition, the linkage from such detour to economic growth performance is verified, confirming a positive relationship between moving into short cycle technologies and economic growth in China, and between going into long cycle technologies and economic growth in Korea and Taiwan for the post-catch-up stages or since the 2000s.

Suggested Citation

  • Jongho Lee & Keun Lee, 2021. "Catching-up national innovations systems (NIS) in China and post-catching-up NIS in Korea and Taiwan: verifying the detour hypothesis and policy implications," Innovation and Development, Taylor & Francis Journals, vol. 11(2-3), pages 387-411, September.
    • Handle: RePEc:taf:riadxx:v:11:y:2021:i:2-3:p:387-411
    DOI: 10.1080/2157930X.2021.1932062
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    Cited by:

    1. V. A. Yasinskii & M. Yu. Kozhevnikov, 2023. "The Struggle for Technological Sovereignty: China’s Experience and Lessons for Russia," Studies on Russian Economic Development, Springer, vol. 34(5), pages 704-712, October.
    2. Han, Junhee & Lee, Keun, 2022. "Heterogeneous technology and specialization for economic growth beyond the middle-income stage," Economic Modelling, Elsevier, vol. 112(C).

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