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

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  • TUNCEL, Cem Okan

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.

Suggested Citation

  • TUNCEL, Cem Okan, 2012. "Sectoral System of Innovation and Exploring Technological Upgrading Strategies in Late-Industrializing Countries," MPRA Paper 40843, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40843
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    File URL: https://mpra.ub.uni-muenchen.de/40843/1/MPRA_paper_40843.pdf
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    References listed on IDEAS

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    4. 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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    More about this item

    Keywords

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

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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