Neighbours with Different Innovation Patterns: The Implications of Industrial and FDI Policy for the Openness of Local Knowledge Production

32 Pages Posted: 11 Jun 2020

See all articles by Eunkyung Park

Eunkyung Park

Aalborg University

Ahreum Lee

Seoul National University - Department of Immunology and Molecular Microbiology

Date Written: April 30, 2020

Abstract

This article shows evidence that FDI policies during the catch-up process may leave a trace in the openness of innovation activities in latecomer economies, based on a comparative analysis between the Republic of Korea and China. The past industrial policies of the Republic of Korea favoured creating local technological competence based on the transfer of foreign knowledge in codified form, leading to a low level of global connection in local knowledge creation. By contrast, Chinese policies encouraged the entrance of foreign firms in the Chinese market, leading to a higher level of global interaction in innovation activities. Based on the findings, the article presents policy recommendations and suggests avenues for future research.

Keywords: China, FDI policy, innovation, openness, the Republic of Korea, South Korea, technological catch-up

Suggested Citation

Park, Eunkyung and Lee, Ahreum, Neighbours with Different Innovation Patterns: The Implications of Industrial and FDI Policy for the Openness of Local Knowledge Production (April 30, 2020). Transnational Corporations Journal, Vol. 27, No. 1, 2020, Available at SSRN: https://ssrn.com/abstract=3624105

Eunkyung Park (Contact Author)

Aalborg University

Fredrik Bajers Vej 7E
Aalborg, DK-9220
Denmark

Ahreum Lee

Seoul National University - Department of Immunology and Molecular Microbiology ( email )

101 Daehak-ro, Jongno-gu
Seoul, 03080
Korea, Republic of (South Korea)

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