Engine for Dynamism and Stability
Edited by Masahiro Kawai, Jong-Wha Lee, Peter A. Petri and Giovanni Capanelli
* Albert Guangzhou Hu and Gary H. Jefferson INTRODUCTION 2.1 East Asia has made significant progress in technology development and upgrading during the decade following the Asian Financial Crisis. The Republic of Korea and Taipei,China overtook France and the United Kingdom to become the fourth and fifth largest recipients of patents granted by the United States Patent and Trademark Office (USPTO). A rapid process of technology upgrading is unfolding in the coastal areas of the People’s Republic of China (PRC). Most economies in the region have substantially increased resources devoted to research and development (R&D). All of this has occurred against the background of greatly deepened economic integration in the region over the past decade, which has seen increased intra- and extra-regional flows of goods and investment. The PRC’s entry to the World Trade Organization (WTO) in 2001 has been a major force for global and region economic integration. Integration between the PRC economy and those of its Northeast Asian neighbors has been progressing at a particularly rapid rate. India is accelerating its process of joining the global economy. The sheer size and the potential technological capability of these two economies are creating opportunities for technology development throughout East Asia. The objective of this chapter is to identify patterns of and investigate factors determining technology development and technology diffusion in East Asia in the context of economic integration. The experiences of the East Asian economies that have successfully developed their technological capability demonstrate that learning and imitating were the...
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