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Rapid Growth with Limited Learning: Industrial Policy and Indonesia's Pulp and Paper Industry

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  • Michiel Van Dijk
  • Martin Bell

Abstract

This paper contributes to the debate on the role of technical change and industrial policy in Indonesian economic growth using the pulp and paper industry as a case study. The analysis indicates that industry and trade policies had a positive influence on growth and capital accumulation, but gave Indonesian pulp and paper companies few incentives to create or deepen their technological capabilities, resulting in fragmented and limited technology assimilation. The findings also raise questions about common interpretations of total factor productivity growth in Indonesia in terms of inspiration versus perspiration.

Suggested Citation

  • Michiel Van Dijk & Martin Bell, 2007. "Rapid Growth with Limited Learning: Industrial Policy and Indonesia's Pulp and Paper Industry," Oxford Development Studies, Taylor & Francis Journals, vol. 35(2), pages 149-169.
    • Handle: RePEc:taf:oxdevs:v:35:y:2007:i:2:p:149-169
    DOI: 10.1080/13600810701322017
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    References listed on IDEAS

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    1. Dijk van, M., 2003. "Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry," Working Papers 03.02, Eindhoven Center for Innovation Studies.
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    Cited by:

    1. Szirmai, Adam & Van Dijk, Michiel, 2007. "The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing: An International Comparison of Plant-Level Performance," MERIT Working Papers 2007-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Keun Lee & Marina Szapiro & Zhuqing Mao, 2018. "From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge Creation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 424-441, July.
    3. Figueiredo, Paulo N., 2016. "Evolution of the short-fiber technological trajectory in Brazil's pulp and paper industry: The role of firm-level innovative capability-building and indigenous institutions," Forest Policy and Economics, Elsevier, vol. 64(C), pages 1-14.
    4. Figueiredo P.N., 2013. "Beyond technological catch‐up : An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil," MERIT Working Papers 2013-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Wang, Yuandi & Zhou, Zhao, 2013. "The dual role of local sites in assisting firms with developing technological capabilities: Evidence from China," International Business Review, Elsevier, vol. 22(1), pages 63-76.
    6. Xiangdong Zhan & Fuji Xie, 2023. "Knowledge Activities of External Knowledge Network and Technological Capability: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1343-1370, June.
    7. Paulo N. Figueriredo, 2010. "Discontinuous Innovation Capability Accumulation in Latecomer Natural Resource-processing Firms: Evidence from Brazil," DRUID Working Papers 10-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

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