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Sectoral System of Innovation and Exploring Technological Upgrading Strategies in Late-Industrializing Countries

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  • TUNCEL, Cem Okan
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    Abstract

    Latecomer sectors in late-industrializing economies follow different patterns in their development and growth processes, which largely determine the share acquired from the global value chain. The development and growth process of the sectors is generally argued to be the result of the interaction of macro level specific institutional context and micro level firm strategic choices. In this study I argue that meso-level sectoral systems also play a critical role in the development and growth process of latecomer sectors. Accordingly, I aim to integrate these three theoretical perspectives -resource-based view (RBV) of the firm, sectoral system of innovation (SSI) perspective, and technological capability perspective for late industrializing economies- to explain the relative developmental failure of Turkish automotive industry compared to other successful latecomer industries such as South Korean automotive industry In the light of theoretical framework, I will try to investigate sectoral technological upgrading trajectory and compare between Korean and Turkish automotive industry development path by using case study method. I will end by discussing how a multilevel framework that takes into account the systemic factors can guide research on sectoral development in late-industrializing countries. In the light of a comparative historical analysis of development of Turkish and Korean automotive industries it is argued that a pace of industrial transformation can be accelerated by multilevel proactive state intervention.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40843.

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    Date of creation: 2012
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    Handle: RePEc:pra:mprapa:40843

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    Keywords: Sectoral System of Innovation; Upgrading Strategies; Late-Industrializing Countries; Korean and Turkish Automotive Industry;

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    1. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-68, June.
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    3. Mike Hobday, 2003. "Innovation in Asian Industrialization: A Gerschenkronian Perspective," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 293-314.
    4. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth
      [One Economics, Many Recipes: Globalization, Institutions, and Economic Growth]
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    9. Morris Teubal, 2002. "special issue: What is the systems perspective to Innovation and Technology Policy(ITP) and how can we apply it to developing and newly industrialized economies?," Journal of Evolutionary Economics, Springer, vol. 12(1), pages 233-257.
    10. Lall, Sanjaya & Teubal, Morris, 1998. ""Market-stimulating" technology policies in developing countries: A framework with examples from East Asia," World Development, Elsevier, vol. 26(8), pages 1369-1385, August.
    11. Fabrizio Cesaroni & Alfonso Gambardella & Walter Garcia-Fontes & Myriam Mariani, 2001. "The Chemical Sector al System. Firms, markets, institutions and the processes of knowledge creation and diffusion," LEM Papers Series 2001/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. Jan Fagerberg, 2003. "Innovation: A Guide to the Literature," Working Papers on Innovation Studies 20031012, Centre for Technology, Innovation and Culture, University of Oslo.
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