How to bypass middle-technology trap: Lessons from successful experience of East Asian economies

Authors

Ge LAI, The Institute for International Affairs, Qianhai, The Chinese University of Hong Kong, Shenzhen, Shenzhen 518172, ChinaFollow
Zilan HUANG, The Institute for International Affairs, Qianhai, The Chinese University of Hong Kong, Shenzhen, Shenzhen 518172, ChinaFollow
Haoyan YUAN, The Institute for International Affairs, Qianhai, The Chinese University of Hong Kong, Shenzhen, Shenzhen 518172, China

Keywords

middle-technology trap, East Asian economies, technological progress, policy environment, talent development system, enterprise-oriented innovation system, finance system

Document Type

Avoid Middle-technology Trap and Achieve Chinese Path to Modernization

Abstract

In the second half of the 20th century, a few East Asian economies successfully bypassed the middle-technology trap through technological progress and industrial upgrading. How could these economies utilize foreign technology, thereby catching up with and surpassing the medium level of technological development, stepping into the edge of technological frontier? Their successful experience can be used by China to stride over the trap. This study analyzes the common elements of the success of these economies from both external and internal aspects. Externally, these economies happened to be benefited from an international business environment that is open and free. Consequently, the cross-border flow of talents, goods and capital became an important source of accelerator for technology diffusion and innovation. From the perspective of internal development, these economies were benefited from (1) a gradually market-oriented policy environment, (2) a high-quality education system and open system of human capital, as well as (3) an enterprise-oriented innovation system for applied science that can transform basic science into applied technologies, (4) a financial system with local characteristics.

First page

1615

Last Page

1626

Language

Chinese

Publisher

Bulletin of Chinese Academy of Sciences

References

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Recommended Citation

LAI, Ge; HUANG, Zilan; and YUAN, Haoyan (2023) "How to bypass middle-technology trap: Lessons from successful experience of East Asian economies," Bulletin of Chinese Academy of Sciences (Chinese Version): Vol. 38 : Iss. 11 , Article 4.
DOI: https://doi.org/10.16418/j.issn.1000-3045.20230804002
Available at: https://bulletinofcas.researchcommons.org/journal/vol38/iss11/4