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Absorptive Capacity and Industrial Growth: A Conceptual Framework and Korea’s Experience

In: Social Capability and Long-Term Economic Growth

Author

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  • Linsu Kim

Abstract

Korea’s rapid industrialization may be attributed to many economic, social and technical factors. The most important of all may be absorptive capability, which is a combined outcome of various economic, social and technical inputs. Absorptive capability enables one to assimilate, use, adapt and change existing technologies. It also enables one to create new technologies and to develop new products and processes in response to a changing economic environment. Absorptive capability also includes capacity to acquire, adapt and internalize managerial know-how. This latter element of absorptive capability, however, is not explicitly covered in this chapter.

Suggested Citation

  • Linsu Kim, 1995. "Absorptive Capacity and Industrial Growth: A Conceptual Framework and Korea’s Experience," Palgrave Macmillan Books, in: Bon Ho Koo & Dwight H. Perkins (ed.), Social Capability and Long-Term Economic Growth, chapter 13, pages 266-287, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-13512-7_13
    DOI: 10.1007/978-1-349-13512-7_13
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    Cited by:

    1. Algarni, Mohammad A. & Ali, Murad & Leal-Rodríguez, Antonio L. & Albort-Morant, Gema, 2023. "The differential effects of potential and realized absorptive capacity on imitation and innovation strategies, and its impact on sustained competitive advantage," Journal of Business Research, Elsevier, vol. 158(C).
    2. Duysters, Geert & Jacob, Jojo & Lemmens, Charmianne & Hu, Jintian, 2008. "Internationalization and Technological Catching Up of Emerging Multinationals: A Case Study of China's Haier Group," MERIT Working Papers 2008-052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Linsu Kim, 1998. "Crisis Construction and Organizational Learning: Capability Building in Catching-up at Hyundai Motor," Organization Science, INFORMS, vol. 9(4), pages 506-521, August.
    4. Narula, Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    5. Kyung-Min Nam, 2010. "Learning through the International Joint Venture: Lessons from the Experience of China’s Automotive Sector," Globelics Working Paper Series 2010-01, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    6. Shanxing Gao & Kai Xu & Jianjun Yang, 2008. "Managerial ties, absorptive capacity, and innovation," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 395-412, September.
    7. Narula, Rajneesh, 2002. "Switching from import substitution to the ‘New Economic Model’ in Latin America: A case of not learning from Asia," Research Memorandum 042, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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