Revisiting South Korean industrial development and innovation policies: from implementation capability to design capability

ABSTRACT

This study examines the effects of two types of technological capabilities, i.e. implementation and design capabilities, across different industrial development stages, and coherent yet evolving innovation policies to foster each of the technological capabilities. This framework provides a theoretical basis to analyse the two different types of non-continuous transitions between the stages of industrial development. It also explains that these transitions come from the accumulation of technological capability led by deliberate policy intervention to manage the transition process. The Korean industrial development experience shows how the country’s innovation policies and following upgrades in technological capability led to successful transitions of industries. The lessons from Korean development provide strong policy implications to countries facing slowdowns during industrial transitions, and explain the slowdowns from the perspective of two distinct technological capabilities.

KEYWORDS:

• Technological capability
• industrial development
• innovation policy
• transition
• South Korea

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Jeong-Dong Lee

Jeong-Dong Lee is a Professor of the Interdisciplinary Graduate Program on Technology Management, Economics, and Policy at Seoul National University. His main research topics include firm dynamics, productivity and efficiency analysis, evolutionary economics, and economics of technological change.

Wonsub Eum

Wonsub Eum is an assistant professor at the University of Kitakyushu, Japan. His research focuses on international trade, structural change and innovation.

Kiyoon Shin

Kiyoon Shin is associate research fellow at Science and Technology Policy Institute (STEPI). He received his Ph.D. in Technology Management, Economics, and Policy from Seoul National University. His research interests are policy evaluation, policy impact assessment, digital transformation and its impact, and productivity.

Yunyoung Kim

Yunyoung Kim received the Ph.D. degree in economics from Seoul National University. Her research interests include accumulation and transformation of technological capabilities in the industry.

Hun Jun Lee

Hun Jun Lee is a postdoc researcher in Seoul National University. He received his Ph.D. in economics from Seoul National University. His main research field is productivity dynamics and survival of firms.