Late Industrialisation under Platform Capitalism

The digital (or 4th industrial) revolution has made industrialisation harder by being less consequential for structural transformation that was initially hoped for and by giving rise to digital platforms that have come to dominate the global economic landscape. This paper explains why diminished expectations of the 4th industrial revolution are justified and describe the rise of digital platforms and platform capitalism. The implications for late industrialisation are discussed, and three broad recommendations for digital industrial policies are made. First, digital industrial policies should respond appropriately to the industrial policies of advanced manufacturing countries wherein digital platforms are increasingly taking centre stage. Two, regulation, including setting the rules for markets under digital platform capitalism, is necessary for developing countries to limit the potential adverse consequences of digital platforms. Third, a more supportive environment for home-grown digital platforms in late industrialising countries are needed, such that home-grown platforms can avoid being locked into the West or China’s technology hardware, standards, and cyber governance systems on adverse terms.