Imitation trap and catch-up: a benchmark model based on horizontal innovation theory

Feng Wei and Yang Jiao

China Political Economy, 2025, vol. 8, issue 2, 216-228

Abstract: PurposeThe paper introduces the concept of the “imitation trap” to describe a state where economies remain reliant on technological imitation and fail to transition to growth driven by independent innovation. It aims to develop an endogenous economic growth model applicable to both independent research and development (R&D) and imitation strategies for independently operated enterprises to achieve economic catch-up in developing countries.Design/methodology/approachThe model is designed under conditions of imperfectly competitive markets, focusing on the dual characteristics of technological innovation in developing economies: (1) technology adoption through imitation from developed countries and (2) self-directed learning-by-doing in R&D without external guidance.FindingsFrom the perspective of technological dynamics and endogenous growth theory, this study explores the feasibility of technological catch-up and the potential lag induced by the imitation trap. It further refines existing literature on economic catch-up and expands the definition of the imitation trap.Originality/valueThis paper’s primary originality lies in formally conceptualizing and modeling the “imitation trap” within an “endogenous growth framework.” The model offers clear policy implications, suggesting that targeted fiscal tools and factor price corrections can help economies escape the imitation trap and achieve economic catch-up.

Keywords: Economic growth; Imitation trap; Catch-up; Horizontal innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:cpepps:cpe-09-2025-0026

DOI: 10.1108/CPE-09-2025-0026

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