Interpreting East Asian Growth and Innovation - download pdf or read online

By Haider A. Khan

Haider Khan's booklet is going past the learn of catch-up know-how and increases the query of innovation tactics which are the major to the longer term progress and prosperity of the East Asian economies. this is often relatively very important within the aftermath of the Asian monetary crises that experience rate those economies a lot. How can newly industrialized economies in attaining cohesive structures of innovation for sustainable progress? the writer bargains a unique conception of innovation structures with concrete case reviews to demonstrate its usefulness.

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Essentially, the more rapid the rates of growth of the factor inputs, especially that of capital, the further away is the economy from the steady state, and the productive potential of the new investments may not be fully realized. The rate of growth of the capital input may be taken to be a measure of the amount of disruption of necessary adjustment. If this is the case, the positive effect of any technical progress may be offset in the short term by the negative effect of overly rapid growth of factor inputs until their rates of growth decline to more absorbable, or ‘steady-state,’ levels.

On the contrary, if they can be done at any location and the temporal sequence is not important then they are loosely coupled. An example of the latter is the computer technology (sub-) system. The complexity dimension of a technology system or subsystem is the feedback process referred to earlier. In a complex environment, the non-linear processes with feedbacks at work may lead to multiple equilibria. In this chapter I present a relatively simple non-linear model and show how easily multiple equilibria may exist in complex technology systems.

Rivera-Batiz and Romer (1991) show that integration may lead to greater access to a larger technical knowledge base (one could draw a mental picture showing the difference between North and South Korea in this respect) than would be available under autarky. It is also possible that exposure to international competition may reduce unnecessary industrial research. However, without ready access to the global research base this may not necessarily be the situation. It should also be recognized that free trade may not always be the best state of affairs.

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