High-Tech FDI-Led Growth in Small Latecomers: An Analytical Framework

Abstract

Development is a process of increasing the production of knowledge-based assets within a country, thus shifting production from primary goods to goods of increasingly higher value. Amsden (2001, 3) defines a knowledge-based asset as “a set of skills that allows its owner to produce and distribute a product at above prevailing prices or below market costs.” For a country, the advancement of such skills, managerial and technological, develops over time and cumulatively, but by no means automatically. How to overcome the deficit in skills is the very challenge of development.