The Art of Economic Catch-Up

Keun Lee is Professor of Economics at Seoul National University, and the founding director of the Center for Economic Catch-up. He is also the President of the International Schumpeter Society, a member of the UN Committee for Development Policy, an editor of Research Policy, a council member of the World Economic Forum, and a member of the governing board of Globelics. He was awarded the 2014 Schumpeter Prize for his book Schumpeterian Analysis of Economic Catch-up: Knowledge, Path-creation and the Middle Income Trap (Cambridge, 2013).

• 1. Introduction; 2. Different mechanisms of growth in poor and rich nations and the narrow pathway in between; 3. The three detours and capability building; 4. The detour of promoting big businesses and SMEs during transition; 5. Flying on a balloon out of the windows of opportunity: why and how to leapfrog; 6. Recapitulation of the art; 7. Practicing the art in late latecomers.

'Economists and policy makers all over the world are eager to understand better the remarkable technological and economic development of Korea, Taiwan, and more recently China from poor backward economies to economies supporting a number of world class sophisticated industries. In my view the writings over the past decade of Keun Lee have provided great illumination regarding how this progress has been achieved. This book provides a coherent and accessible review of his analyses and takes it further to consider how these countries have been able to reach the technological and economic frontiers despite increasing resistance from firms and countries who have not welcomed this new competition. This book is essential reading for those interested in economic development.' Richard R. Nelson, Columbia University