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Middle Innovation Trap

Author

Listed:
  • Jeong-Dong Lee

    (Seoul National University (South Korea))

  • Chulwoo Baek

    (Duksung Women’s University (South Korea))

  • Sira Maliphol

    (Seoul National University (South Korea))

  • Jung-In Yeon

    (Seoul National University (South Korea))

Abstract

The middle income trap requires strategies for building technological capabilities to overcome it. This study focuses on the development patterns of two types of technological capabilities: implementation and concept design. A conceptual approach developed from evolutionary economics and innovation systems literature is constructed to distinguish between the types of technological capabilities and how they develop. The approach is mainly applied to the cases of Korea’s development and it highlights the differences in developing implementation and concept design capabilities.The findings of the study emphasize the need for the development of concept design capabilities, which requires (i) setting challenging targets, (ii) developing human resources, infrastructure and knowledge accumulation, and (iii) using an incremental process of trial-and-error and course correction. More broadly, sociocultural institutions may need to be changed to accommodate higher risk-taking but also require different approaches to change. The study extends the concept of technological capabilities by emphasizing the concept design capability that requires trial-and-error beyond R&D activities.

Suggested Citation

  • Jeong-Dong Lee & Chulwoo Baek & Sira Maliphol & Jung-In Yeon, 2019. "Middle Innovation Trap," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(1), pages 6-18.
  • Handle: RePEc:hig:fsight:v:13:y:2019:i:1:p:6-18
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    References listed on IDEAS

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    Cited by:

    1. Jeong-Dong Lee & Keun Lee & Dirk Meissner & Slavo Radosevic & Nicholas S. Vonortas, 2021. "Local capacity, innovative entrepreneurial places and global connections: an overview," The Journal of Technology Transfer, Springer, vol. 46(3), pages 563-573, June.
    2. Jung-In Yeon & Jeong-Dong Lee & Chulwoo Baek, 2021. "A tale of two technological capabilities: economic growth revisited from a technological capability transition perspective," The Journal of Technology Transfer, Springer, vol. 46(3), pages 574-605, June.
    3. De Silva, Muthu & Gokhberg, Leonid & Meissner, Dirk & Russo, Margherita, 2021. "Addressing societal challenges through the simultaneous generation of social and business values: A conceptual framework for science-based co-creation," Technovation, Elsevier, vol. 104(C).

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    More about this item

    Keywords

    middle income trap; middle innovation trap; technological capability; implementation capability; concept design capability;
    All these keywords.

    JEL classification:

    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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