Learning and catching up in different sectoral systems: evidence from six industries

Abstract

This article claims that catching up is a learning process that requires a long time and often differs significantly across economic sectors in the factors leading to success or failure. We support these claims by examining the major factors affecting catching up by several countries in six industries: India and Brazil for pharmaceuticals; Korea, China, and Brazil for autos; India, Ireland, Israel, China, Brazil, and other countries for software; Korea and India for telecommunication equipment; Korea, Taiwan, China, and Malaysia for semiconductors; and China, Brazil, Costa Rica, and Nigeria for some agricultural crops. The article uses the framework of sectoral systems and argues that there are significant differences across these sectors in the variables and mechanisms involved in catching up. The article identifies the common factors affecting catching up and the main differences across sectoral systems. It then discusses the interplay between national systems and sectoral systems.