Abstract
This chapter demonstrates a unique development mechanism, naming it ‘catch-down innovation’. For developing countries to catch up with developed countries in terms of per capita income, it is often assumed that they need to catch up technologically. Interestingly, however, some firms in China and India have developed several indigenous technologies that cater to specific, low-income demand and the social environment of consumption in these countries. Calling this type of technological progress ‘catch-down innovation’, the chapter compares it with similar ideas presented in the 1970s such as ‘intermediate technology’. Then, the chapter presents five cases such as video CDs and puts forth a hypothesis that in countries with vast domestic markets stratified by urban–rural and regional disparities, catch-down innovations have a higher chance of success.
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Notes
- 1.
Lee’s (2013) is a recent example of a study that assumes a direct relationship between national-level catching up in terms of per capita income and firm- or industry-level catching up in technology, measured by the number of US patents.
- 2.
The author’s interview at Hualu Matsushita VTR Company on 22 August 1997.
- 3.
The author’s interview with a person engaged in the animation industry in Hangzhou on 26 August 2013.
- 4.
Zhejiang Zhongnan Animation Co. Ltd, a huge studio employing more than 1000 animators, said during the author’s interview at the company on 25 August 2014 that 30 % of their production was made using Adobe Flash.
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Marukawa, T. (2016). ‘Catch-Down’ Innovation in Developing Countries. In: Sato, Y., Sato, H. (eds) Varieties and Alternatives of Catching-up. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-59780-9_7
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