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By Haider A. Khan

Haider Khan's e-book is going past the research of catch-up expertise and increases the query of innovation tactics which are the foremost to the longer term progress and prosperity of the East Asian economies. this can be really vital within the aftermath of the Asian monetary crises that experience expense those economies a lot. How can newly industrialized economies in attaining cohesive structures of innovation for sustainable progress? the writer deals a singular concept of innovation structures with concrete case reviews to demonstrate its usefulness.

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Extra resources for Interpreting East Asian Growth and Innovation

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In the first place, the problem of the positive-feedback loop innovation system (POLIS) must be solved. After the creation of a POLIS, its transformation from Mark IV to Mark V phase must be carried through. Just as only a sinner may officially confess, only a country that has committed the technological sin of creating a POLIS can move forward to the next stage. It is in the creation of a POLIS that many of the stumbling blocks must be faced first. Technology, industrial and trade policies have been the key national policy instruments for creating a POLIS.

At the same time, the capitalist entrepreneurs’ willingness to invest in R&D can be shown to depend on the workers’ expected investment in human capital. One can follow through this approach logically and derive the Nash equilibrium under rational expectations. The characteristics of strategic complementarity between the two types of investment and the presence of pecuniary externalities (together with indivisibilities in R&D expenditures) create the possibilities of multiple equilibria. The existence of multiple equilibria creates possibilities for technology policies.

Likewise the growth accounting estimations of TFP do not by themselves justify the methodology of this approach. 4 Making a Miracle: A New Approach As the discussion in the last two chapters has shown, a large part of the problem of resolving the debate between the miracle-mongers and miracle-breakers has to do with the characteristics of the growth process itself. In this chapter a systematic attempt will be made to arrive at a methodology for identifying the nature of the growth process in the East Asian economies.

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