Achieving Technology-based Competitiveness in Developing Countries

Abstract

Markets for manufactured goods are becoming increasingly global. Technology-based goods and services account for a growing proportion of the value of international trade. Accordingly, international competitiveness, particularly in technology-based industries, is the new metric of national economic achievement, providing a goal to which developing and industrialised nations alike aspire. As the USA has discovered, leadership, once achieved, can be difficult to maintain. The astonishing performance of Japan and the newly industrialised countries (NICs) of South-east Asia (South Korea, Taiwan, Singapore, Malaysia, Hong Kong) raise questions about the most effective national policies to achieve competitiveness in technology-based industries. Which of the NICs will emerge as fully competitive across several technology-based sectors? Over a longer time-horizon, how likely are countries such as Brazil, India and China to use technology to challenge the NICs or even the current technology-oriented trade leaders?

We wish to thank Thomas Kuehn, Russell Drew, and Susan Fouts of Viking Instruments, Inc., for their support, collaboration, and insights in the work reported here. Errors of fact and interpretation are ours alone.