Local 'Test Bed' Market Demand in the Transition to Leadership: The Case of the Korean Mobile Handset Industry
Summary This article proposes that a potentially significant dimension of technological catching-up and the transition to leadership lies in the quality and dynamics of the local market, rather than in the export market demand as traditionally stressed in catch up studies. Based on an exploratory analysis of the Korean mobile handset industry over the period of the late 1980s to 2005 the paper shows that a transition to leadership in handsets was shaped and driven by domestic users, local service suppliers (mobile telecommunications operators), favorable government policies, and strong producer-user links forged by manufacturers and operators. Traditionally, local demand in latecomer economies has been considered too small and unsophisticated to stimulate innovation and to enable catching up. However, in this case, local demand evolved and acted as an important "test bed" for new products, services, and technologies, shaping the rate and direction of the technological development of both local suppliers and operators. The conclusion argues that while direct implications for other developing countries cannot be drawn from a single case, future research could identify whether, under certain circumstances, the role of local demand and test bed markets could have wider relevance for other advanced developing nations and other sectors approaching the technology frontier.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hobday, Michael & Rush, Howard & Bessant, John, 2004. "Approaching the innovation frontier in Korea: the transition phase to leadership," Research Policy, Elsevier, vol. 33(10), pages 1433-1457, December.
- Choi, Seon-Kyou & Lee, Myeong-Ho & Chung, Gyu-Hwa, 2001. "Competition in Korean mobile telecommunications market: business strategy and regulatory environment," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 125-138, February.
- Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
- Kim, Linsu & Dahlman, Carl J., 1992. "Technology policy for industrialization: An integrative framework and Korea's experience," Research Policy, Elsevier, vol. 21(5), pages 437-452, October.
- Ron Adner & Daniel Levinthal, 2001. "Demand Heterogeneity and Technology Evolution: Implications for Product and Process Innovation," Management Science, INFORMS, vol. 47(5), pages 611-628, May.
- Christensen, Clayton M. & Rosenbloom, Richard S., 1995. "Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network," Research Policy, Elsevier, vol. 24(2), pages 233-257, March.
- Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
- Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July.
- Kim, Han-joo & Byun, Sang-kyu & Park, Myeong-cheol, 2004. "Mobile handset subsidy policy in Korea: historical analysis and evaluation," Telecommunications Policy, Elsevier, vol. 28(1), pages 23-42, February.
- Jho, Whasun, 2007. "Global political economy of technology standardization: A case of the Korean mobile telecommunications market," Telecommunications Policy, Elsevier, vol. 31(2), pages 124-138, March.
- Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
- Bruton, Henry, 1989. "Import substitution," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 30, pages 1601-1644 Elsevier.
- Teece, David J., 1996. "Firm organization, industrial structure, and technological innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 31(2), pages 193-224, November.
- Kim, Linsu, 1980. "Stages of development of industrial technology in a developing country: A model," Research Policy, Elsevier, vol. 9(3), pages 254-277, July.
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:39:y:2011:i:8:p:1358-1371. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.