Technology policy for industrialization: An integrative framework and Korea's experience

Abstract First, this article reviews three policy perspectives. (1) The market mechanism perspective includes the demand for and supply of technology and the linkage between the two. (2) The technology flow perspective consists of technology transfer, diffusion and R&D. (3) The dynamic perspective refers to technological trajectory. It then integrates these three perspectives to develop a new three-dimensional framework that may be useful to analyze technology policy for industrialization. Second, this article applies the framework to analyze Korea's technology policy as a case in point. Conclusions are: (1) Technology policies on foreign technology transfer, technology diffusion, and R&D should change over time in response to changing external environment. (2) Technology policies become effective only when three major components policies to promote the demand side of technology, policies to promote the supply side of technology, and policies to provide effective links between demand and supply sides - are well balanced. Finally, it discusses implications for other developing countries.