Production

(TO BE DONE)

• HOW TO STRUCTURE AGENCY AROUND PRODUCTION? HOW TO PROBLEMATIZE PRODUCTION?

• DIVERSIFICATION (CHANGE) -> NATURE

• VALUE CAPTURE
• ONTOLOGY: WHICH ARE THE ACTOR SET -> DYNAMICS OF THE SET.
• MECHANISM: INDUCE CERTAIN DYNAMICS IN THE ACTORS

• HOW TO EVALUET PROGRESS

• How can the ownership of firms be distributed as broadly as possible, while ensuring that the firms themselves remain professionally managed and large enough to exploit economies of scale?

• What were John Stuart Mill’s ideas regarding the aggregation of firm resources or cooperative ownership?

• What are the main structural and operational vulnerabilities of traditional cooperative models?

• How to help create firms?

• What is the environmetn that i firm needs to be able to bea a world class one?

• Suppliers Networks

• Innovation Networks

• What strategies can support the adoption and upgrading of technology in established or aging enterprises?

• Which industry represents the highest level of technological complexity and intensity in a given era? Identifying this can serve as an indicator of a nation's overall technological strength and strategic industrial capacity.

• Production Development System

• Industrial development System

• Production Path Dependency - and Diversification

Conceptual Model

Specialization

Another Scottish economist, Adam Smith, highlighted the advantages of specialization in a free-market system. Rather than having a group of workers, each producing an entire item from start to finish, Smith explained that it’s usually far more productive to have each of them specialize in one aspect of production. He also cautioned that each worker might not enjoy such a life; this is a trade-off of the specialization model.

Note: The division of labor and specialization move in opposite directions: as the division of labor increases in an economy, the economy tends to diversify.

Structural Transformation

Structural Change in an economy refers to the significant shifts or transformations in the composition, organization, and dynamics of its sectors, industries, and institutions over time.

Innovation:

• Tech Transfers
• Learning by Doing
• R&D (Design) / Process Represented Using 'Search Model` / Combinatorial Process / ...
• ...

Catching Up

"Catching-up" is the process of narrowing the technological gap between two economies by initially focusing on learning and imitation and then advancing to innovation to surpass or match the leader.

"Catching up dynamics" refers to the process by which a country, region, or organization seeks to narrow the technological, economic, or developmental gap with more advanced counterparts by implementing strategic policies and initiatives.

Exploration of Different Catching Up In Order to Extract Lessons.

Change in the Productive model; Productive structure, Export matrix, R&D system.

A sustained structural transformation dynamic, driven by continuous investment in education, research and development, innovation ecosystems, and supportive policy frameworks, enables a country to steadily converge with the technological frontier.

Phase	Description	Key Actions and Strategies
Phase 1: Foundation Building	We establish basic economic and social infrastructure, focusing on stable governance and basic education.	- Invest in education and healthcare. - Establish legal and regulatory frameworks. - Develop basic infrastructure (roads, electricity).
Phase 2: Industrialization	We are transitioning from an agricultural to an industrial economy, developing manufacturing capabilities.	- Promote manufacturing and industrial sectors. - Attract foreign direct investment (FDI). - Implement trade policies to support exports.
Phase 3: Diversification	We are expanding into diverse industries beyond traditional sectors, fostering economic resilience.	- Invest in multiple sectors (technology, services, manufacturing). - Encourage innovation and entrepreneurship. - Strengthen financial institutions.
Phase 4: Innovation and Technology	Focusing on high-tech industries, research and development, and continuous innovation.	- Increase R&D spending. - Foster partnerships between academia and industry. - Promote digital transformation and advanced technologies.
Phase 5: Sustainable Development	It is ensuring long-term economic sustainability by integrating environmental and social considerations.	- Implement sustainable practices and policies. - Invest in green technologies. - Promote inclusive growth and social equity.

Technology

...

Actor Set

Which are the types actors involved?

• Firms
• Individuals
• ...

Problem Space

...

References

• Industry Catalog

• Romer, Paul M. "Growth based on increasing returns due to specialization." The American Economic Review 77.2 (1987): 56-62.

• Structural Transformation:
  • Innovation and Structural Change in Complex Evolutionary Systems https://escueladeverano.cepal.org/2019/sites/default/files/session/files/p5_evogrowthstrch19_ho-compressed.pdf
  • Yeon, Jung-In, Andreas Pyka, and Tai-Yoo Kim. Structural shift and increasing variety in Korea, 1960-2010: Empirical evidence of the economic development model by the creation of new sectors. No. 13-2016. Hohenheim Discussion Papers in Business, Economics and Social Sciences, 2016.
  • Building Indigenous Technological and Innovative Capabilities is Not a Major Economic Policy Objective → Superficial Industrialization.
  • Unlike Japan, Korea, and Taiwan, S&T elements were not part of the broader economic policies, namely, industrial policy, investment policy, trade policy, and, to a lesser extent, education policies (see Intarakumnerd et. al., 2002).
  • You Can See The Problem: The Minister of Economic Affairs needs more participation in the R&D Policy.
  • Except for the automobile industry, there were no reciprocal performance-based criteria (such as export and local value added and technological upgrading targets) for providing state incentives like in Korea and Taiwan (Amsden 1989, 2001; Amsden and Chu, 2003). Investment promotion privileges, for example, were provided upon approval to set up businesses.
  • Intarakumnerd, Patarapong, Pun-arj Chairatana, and Tipawan Tangchitpiboon. "National innovation system in less successful developing countries: the case of Thailand." Research policy 31.8-9 (2002): 1445-1457.
  • Intarakumnerd, Patarapong, and Thanaphol Virasa. "Broader roles of RTOs in developing countries: from knowledge-creators to strengtheners of national innovation system." Science, Technology and Innovation Conference, JFK School of government, Harvard University. 2002.
  • Wong, P., (1999) ‘National Innovation Systems for Rapid Technological Catch-up: An Analytical Framework and a Comparative Analysts of Korea, Taiwan, and Singapore’,A paper presented at the DRUID’s summer conference, Rebild, Denmark.
  • Chang, H. (1997) “Institutional Structure and Economic Performance: Some Theoretical and Policy Lessons from the Experience of the Republic of Korea”, Asia Pacific Development Journal,4 (1):39-56.
• Convergence
  • Malerba, Franco, and Richard Nelson. “Catching up in different sectoral systems.” Globelics. Disponível em: globelics. org, data do acesso 26.02 (2008): 2009.
  • Malerba, Franco, and Keun Lee. "An evolutionary perspective on economic catch-up by latecomers." Industrial and Corporate Change 30.4 (2021): 986-1010.
  • Malerba, Franco, and Richard Nelson. "Learning and catching up in different sectoral systems: evidence from six industries." Industrial and corporate change 20.6 (2011): 1645-1675.
  • Catch-up Growth in the Post-crisis World" by E. Kwan Choi and K. Yi.
  • Abramovitz, M. (1986). Catching Up, Forging Ahead, and Falling Behind. The Journal of Economic History, 46(2), 385–406.
  • Kim, L. (1980). Stages of Development of Industrial Technology in a Developing Country: A Model. Research Policy, 9(3), 254–277.
  • Economic Catch-up and Technological Leapfrogging: Lessons from China’s Telecommunications Industry by Y. Zhang and X. Xie.
  • Romer, Paul M. "Endogenous technological change." Journal of political Economy 98.5, Part 2 (1990): S71-S102.
  • Nordas, Kyvik H. “South African Manufacturing Industries: Catching Up or Falling Behind?.” Journal of Development Studies, no. 5 (1996).
  • Hausmann, R., Kennedy, J. F., Hwang, J., & Rodrik, D. (2006). What You Export Matters.
  • Baumol, W. J., and E. N. Wolff. “Catching Up in the Postwar Period: Puerto Rico as the Fifth ‘Tiger’?” World Development, no. 5 (1996).\
  • Fishlow, A. “The Latin American State.” Journal of Economic Perspectives 4 (1990).
  • Fagerberg, Jan and Manuel M. Godinho (2005), 'Innovation and catching-up,’ in D. C. Mowery, J. Fagerberg and R. R. Nelson (eds.), The Oxford Handbook of Innovation, pp. 514-543, Oxford University Press: New York.
  • Nayyar, Deepak (2019), Resurgent Asia: Diversity in Development. Oxford Univ. Press: Oxfrod.
  • Lim, C., Kim, Y., & Lee, K. (2017). Changes in industrial leadership and catch-up by latecomers in shipbuilding industry. Asian Journal of Technology Innovation, 25(1), 61–78.
  • Intarakumnerd, Patarapong. "Thailand’s middle-income trap: firms’ technological upgrading and innovation and government policies." Seoul Journal of Economics 32.1 (2019).
  • Intarakumnerd, Patarapong. "Catching Up or Falling Behind: Thailand’s Industrial Development from the National Innovation System Perspective’." Sustainability of Thailand’s Competitiveness: The Policy Challenges (2010): 52-77.
  • Intarakumnerd, P., and T. Virasa. "Government policies and measures in supporting technological capability development of latecomer firms: a tentative taxonomy." Asian Journal of Technology Innovation 12.2 (2004): 1-19.
• An Essay on the Determination of the Minimal and Sufficient Conditions Required to Initiate the Development and Evolution of an Industrial Sector Toward Convergence and Overtaking