China’s Technological Leapfrogging and Economic Catch up A Schumpeterian Perspective 1st edition by Keun Lee 0192663351 9780192663351

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ISBN-10 :  0192663351 

ISBN-13 :  9780192663351

Author: Keun Lee 

Chapters 1 and 10 from this book are published open access and free to read or download from Oxford Academic. After the miraculous economic growth known as the Beijing Consensus, China is now facing a slowdown. The attention has moved to the issue of the middle income trap. This book deals with this interesting issue in the context of China. It also discusses China’s limitations and future prospects, especially after the rise of a new “cold war” between China and the US, namely the question of whether China would fall into another trap called the “Thucydides trap”, or conflict with the existing hegemon as a rising power. In sum, this book plays around three key terms, namely, the Beijing Consensus, the Middle Income Trap, and the Thucydides trap, and applies a Schumpeterian approach to these concepts. It also conducts a comparative analysis that examines China from an “economic catch-up” perspective. An economic catch-up starts from learning and imitating a forerunner, but finishing the race successfully requires taking a different path along the road. This act is also known as leapfrogging, which implies a latecomer doing something different from, and often ahead of, a forerunner. Technological leapfrogging may lead to technological catch-up, which means reducing the technological gap, and then finally to economic catch-up in living standards (per capita income) and economic size (GDP: economic power). This linkage from technological leapfrogging and catch-up to economic catch-up corresponds exactly with a similar linkage from the Beijing Consensus to escaping (or not) the middle income and the Thucydides traps. One conclusion from this book is that China’s successful rise as a global industrial power has been due to its strategy of technological leapfrogging, which has enabled China to move beyond the middle income trap and possibly the Thucydides trap, although at a slower speed.

China’s Technological Leapfrogging and Economic Catch-up: A Schumpeterian Perspective 1st Table of contents:

1. Introducing Schumpeter to China
1.1 Beijing Consensus, Middle-Income Trap, and Thucydides Trap
1.2 Schumpeterian Model of Technological Leapfrogging and Catch-up
1.3 Main Findings from Each of the Three Parts
1.4 Contributions and Limitations
Part I. The Origins of Catch-up and the Early Effort
2. The Origins of Technological Catch-up in China: The Birth of Huawei and ZTE in the Telecom Sector1
2.1 Introduction
2.2 Evolution of the Telecommunications Equipment Industry in China
2.3 The Model of Technological Catch-up and the Chinese Factors
2.4 Trading Market for Technology and Getting Access to Knowledge
2.5 Knowledge Diffusion and the Indigenous Development of Digital Automatic Switches
2.6 Segmented Market and the Competitive Advantage of Indigenous Firms
2.7 Summary and Concluding Remarks
3. Origins and Growth of Big Businesses in China1
3.1 Introduction
3.2 Basic Profile of the Business Groups in China
3.3 History of Business Groups in China
3.4 Role of the State in the Growth of Business Groups
3.5 Corporate Ownership, Governance, and Agency Costs
3.6 Business Structure and Diversification
3.7 Efficiency and Competitiveness
3.8 Summary and Concluding Remarks
4. Role of Science and Technology Institutions in Limited Catch-up: Semiconductor Industry1
4.1 Introduction
4.2 Limited Catch-up in China’s IC Manufacturing
4.3 Innovation Systems of Semiconductor Industry
4.4 Failure to Catch-up during the 1950s to the Early 1990s
4.5 Limited Success from Late 1990s to Early 2000s
4.6 Changing Situations since the mid-2000s
4.7 Summary and Concluding Remarks
Part II. Assessing the Catch-up in a Comparative Perspective
5. Assessing China’s Economic Catch-up in a Comparative Perspective: Beijing Consensus, Washington Consensus, East Asian Consensus1
5.1 Introduction
5.2 China and the Washington Consensus
5.3 Beijing Consensus versus East Asian Model
5.4 Challenges and the Evolution of the Chinese Innovation System
5.5 Summary and Concluding Remarks
6. Catching-up and Leapfrogging in Key Manufacturing Sectors: A Comparison with Korea1
6.1 Introduction
6.2 Mobile Phone Industry
6.3 Telecommunications System Industry
6.4 Automobile Industry
6.5 Semiconductor Industry
6.6 Summary and Concluding Remarks
7. Catch-up in the IT Service Sector and the Role of the Government in China1
7.1 Introduction
7.2 Role of the Government in Catch-up
7.3 Online Game Industry
7.4 Applied Software Industry
7.5 Summary and Concluding Remarks
8. Huawei’s Leapfrogging to Overtake Ericsson1
8.1 Introduction
8.2 Huawei versus Ericsson
8.3 Data, Methodology, and Hypotheses
8.4 Catching-up with Similar or Different Technologies
8.5 Catching-up with More Recent and Scientific Knowledge
8.6 Summary and Concluding Remarks
Part III. Prospects of Catch-up and Leapfrogging
9. Possibility of a Middle-Income Trap in China1
9.1 Introduction
9.2 Three Criteria to Assess Possibility of MIT in China
9.3 Innovation and Higher Education: Criterion One
9.4 Big Businesses: Criterion Two
9.5 Inequality: Criterion Three
9.6 Summary and Concluding Remarks
10. Thucydides Trap, Global Value Chain, and Future of China
10.1 Introduction
10.2 Comparison of the Economic Size of the US and China: The Thucydides Trap
10.3 GVC as the Key Linkage between the Two Traps
10.4 Mounting Challenges Facing the Chinese Economy
10.5 Concluding Remarks: Will China Overcome the Triple Traps by Leapfrogging?

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Tags: China, Technological, Leapfrogging, Economic Catch up, Schumpeterian Perspective, Keun Lee