Technological Catch-up and Knowledge Sourcing of Latecomers from Emerging Economies (AIB Insights Vol 16 No 4 (2016 Q4))

In most technological sectors, firms in developed countries such as the US, Europe, and Japan have accumulated technological capabilities for many years and are now recognized as global technology leaders. Firms in emerging economies are behind these incumbent leaders in developed countries. Due to the size of their head start, some economists have argued that it is almost impossible for latecomers in emerging economies to catch up with incumbent industry leaders in knowledge-intensive industries such as semiconductors, biotechnology, or computer software. However, some laggards in emerging economies such as Samsung Electronics have recently caught up with incumbent leaders even in technology-intensive industries such as the memory chip industry. How do laggards from emerging economies catch up with industry incumbents in such technology-intensive industries? Investigation of the catch-up strategies utilized by these firms is worthwhile for researchers in the fields of strategy and international management. In particular, researchers should examine how and under what conditions laggards from emerging economies can catch up with incumbent leaders. In this article, I suggest promising areas for future empirical research on this increasingly visible and important phenomenon in international business.