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For latecomer countries, one crucial decision is whether to follow the path of economic development traveled by rich countries or to seek out new trajectories. This book observes that latecomers do not always follow advanced countries’ paths; rather, they sometimes skip certain stages and even create their own paths by taking detours and pursuing leapfrogging. The need for detours arises due to the entry barriers, such as intellectual property rights restrictions, protectionist measures, and limited policy spaces under WTO. This book proposes an alternative to prevailing development thinking by focusing on nonlinearity and the multiplicity of pathways for latecomers. The book leaves several questions for future research, such as the rules and modus operandi of the government, and importance of initial conditions. Also, the political and economic power balance between global institutions and national actors determines the dynamics of global–local interfaces. This book does not engage much with the issue of sustainable development, but seeking alternative economic development strategies that produce fewer carbon emissions is consistent with the idea of nonlinearity and the multiplicity of developmental trajectories.
Many developing countries still face difficulties initiating and sustaining economic development. Such difficulties have been exacerbated by the COVID-19 pandemic, resulting in an increasing divergence between rich and poor countries. One crucial question is whether to follow the trajectories of present-day rich countries or seek out different, new trajectories. Although this is a fundamental question, scholars offering mainstream prescriptions have not sufficiently explored it. Drawing on extensive empirical studies of firms and industries, Innovation and Development Detours for Latecomers proposes an effective alternative to prevailing development thinking. It presents a rich menu of development pathways, including a new role for Schumpeterian states whereby they do not follow the paths of technological development already taken by advanced countries. Rather, they can skip certain stages and even create their own detours thereby leapfrogging advanced countries in both manufacturing and service sectors. This title is also available as Open Access on Cambridge Core.
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