Learning Models and Technology Strategy in Catching-up

Learning is central to knowledge-based development. It is through learning that innovation capabilities of firm and social capabilities to adapt to change get improved. This paper focuses on learning at firm and in cluster in developing countries. Three distinctive paths or models of industrial latecomer learning are analyzed: a) individual firm-based latecomer learning, with Korean firms as prototype; b) network-based latecomer learning, with Taiwanese firms as prototype; c) ‘re-combination’ latecomer learning which takes place during profound transition in economic regimes, with Chinese firms as prototype. Machinery and ICT (information and communications technology) industries are the sectoral background of analysis. Reviewing three learning models rather than one model is intended to, and merely intended to, expand our understanding that models or trajectories of learning by industrial latecomers are plural. The analysis leads to identification that, firstly, learning of industrial latecomers is difficult. It entails discontinuous knowledge and skills acquisition, and is a process away from the state of equilibrium. Secondly, in latecomer learning the role of human capital is very central. It makes up the major input from the learner’s part so that the intrinsic difficulties involved are possible to be surmounted. Thirdly, internationally migratory technological knowledge has developed much more extensive and multi-form. It provides latecomer learners reference points to entry. The paper then summarizes the implications in terms of technology strategy in catchingup, including technological choices for entry and the nature of catching-up, which is now open to redress from the perspective of learning. * This paper is prepared for the DRUID Summer Conference on the Learning Economy--Firms, Regions and National Specific Institutions, Rebild, Denmark, June 15-17, 2000