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The Challenges of Technology and Economic Catch-up in Emerging Economies$
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Jeong-Dong Lee, Keun Lee, Dirk Meissner, Slavo Radosevic, and Nicholas Vonortas

Print publication date: 2021

Print ISBN-13: 9780192896049

Published to Oxford Scholarship Online: July 2021

DOI: 10.1093/oso/9780192896049.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 27 November 2021

Capabilities, Competitiveness, Nations

Capabilities, Competitiveness, Nations

(p.37) 2 Capabilities, Competitiveness, Nations
The Challenges of Technology and Economic Catch-up in Emerging Economies

Jan Fagerberg

Martin Srholec

Oxford University Press

This chapter discusses the role of capabilities and competitiveness for the economic growth of nations. The capability concept is commonly used in analyses of firms, however, as this chapter shows, it may also be used at the level of nations. Capabilities at the national level may be defined broadly as “social capabilities,” as done by the economic historian Moses Abramovitz, or more narrowly as “technological capabilities” as suggested by the development scholar Lin-Su Kim. The paper discusses the relationships between these two dimensions of capabilities and examines recent empirical evidence on this matter for a group of 114 countries worldwide on different levels of development. It also considers the relationship between capabilities and competitiveness, and analyzes the effects of capability change and other aspects of competitiveness on economic growth on data for the period 1995–2013. The final section presents the conclusions from the study and raises issues for future research.

Keywords:   technological capabilities, social capabilities, competitiveness, catching-up, Asian tigers, development

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