The Dynamics of Upgrading or How to Catch-up - Imitation and Growth of Newly Industrializing Countries

Thomas Gries and Berthold Wigger ()

Economia Internazionale / International Economics, 1993, vol. 46, issue 4, 377-387

Abstract: The upgrading process through imitation is analyzed for a technologically backward country in an industrialized neighborhood. Depending on human capital, trade policy and R&D expenditures, two regimes of development can be identified. A regime of increasing relative backwardness and a regime of upgrading. Pure imitation may support the upgrading process, but cannot fully dose the technological gap towards the industrialized world in the end. A full closure of the gap requires switching the process from imitation to innovation. Under normal conditions the upgrading process can be accelerated by education efforts, liberal trade policy, and increasing R&D expenditures.

Date: 1993
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