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Adoption of Foreign Technologies in Korean Manufacturing Firms: Characteristics and Microfoundations

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  • Suh, Joong hae

Abstract

The primary goal of this paper is to explore the microeconomic foundation of Korean firms' adoption of foreign technologies. The paper also reviews the overall trend of international technology transfers to Korea. The period covered in this paper is Korea's high growth era, from the 1960s to the 1990s. The works of this paper center on the two questions of what characterizes foreign technologies which had been imported through licensing contracts, and which driving forces expedite technology adoption by firms. The Korean experience provides the context of success in the catch-up growth. The co-movement of technology imports with capital goods imports manifests Korea's effort to improve the technical efficiency toward the world frontier. Underlying this trend are firms' decisions to adopt new technologies. The paper shows that firms respond proactively to wage increases by adopting newer technologies and thus, in turn, increasing employment, which implies the existence of a virtuous interactive mechanism among these factors.

Suggested Citation

  • Suh, Joong hae, 2015. "Adoption of Foreign Technologies in Korean Manufacturing Firms: Characteristics and Microfoundations," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 37(3), pages 75-106.
    • Handle: RePEc:zbw:kdijep:v:37:y:2015:i:3:p:75-106
    DOI: 10.23895/kdijep.2015.37.3.75
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    References listed on IDEAS

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    6. Sriwannawit, Pranpreya & Sandström, Ulf, 2013. "Review of Diffusion Research," INDEK Working Paper Series 2013/1, Royal Institute of Technology, Department of Industrial Economics and Management.
    7. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
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    More about this item

    Keywords

    Korean manufacturing firms; catchup growth; international technology transfer; technology adoption; microeconomic analysis of economic development;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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