Economic Catch-Up and Technological Leapfrogging ─ The Path to Development and Macroeconomic Stability in Korea

This book elaborates upon the dynamic changes to Korean firms and the economy from the perspective of catch-up theory. The central premise of the book is that a latecomer’s sustained catch-up is not possible by simply following the path of the forerunners but by creating a new path or ‘leapfrogging’. In this sense, the idea of catch-up distinguishes itself from traditional views that focus on the role of the market or the state in development.The author provides a comprehensive account of the micro and macro level changes, deals with both firm- and country-level capabilities, and explores the issue of macroeconomic stability to overcome financial crisis. The book demonstrates that at the firm level the focus is on innovation capabilities, diversification, internationalization and job creation. It goes on to examine the rise and upgrading of big businesses, such as Samsung, as well as the global success of SMEs. Comprehensive and illuminating, this is an ideal book for students, academics and researchers interested in the economics of development and technological innovation. It will also be a valuable source book for policy makers in international development agencies, governments and the public sector.

Keun Lee, winner of the 2014 Schumpeter Prize, and Professor, Seoul National University, Korea