Technological catch-up in complex product systems1

This paper highlights distinctive features of technological catch-up in complex product systems (CoPS). This paper contrasts catch-up trends in CoPS with trends in mass-market commodity goods, such as those produced in South Korea. Developing countries are lagging behind in many CoPS areas and technological catch-up in CoPS industries is a very challenging process. This paper argues that due to specific technological and market regimes, the dominant model of technological catch-up in CoPS is based on path-following catch-up. Stage-skipping catch-up is only possible in minor technologies and path-creating catch-up is almost impossible in CoPS industry.