| It has been consistently suggested in the previous literature that technological progress, industrial evolution, and the resulting competitive dynamics among firms are strongly influenced by the institutional surroundings within which firms operate. Several studies have provided a framework for understanding such institutional settings as a structured system. This dissertation undertakes a comparative analysis of technological catching up achieved by the semiconductor producers from South Korea and Taiwan, using the "technological systems" framework.;A Technological system is a system of institutional arrangements that support diverse stages of technological activities in a particular technology area. This study is rooted in the evolutionary theory by arguing that institutions are the mechanisms for enhancing capabilities of the economic agents. In particular, the technological system is seen as the institutional instruments for enhancing technological capability. It is proposed that technological capability consists of four distinctive sub-level capabilities. (1) Absorptive capacity , the capability to scan and absorb technologies. (2) Combinative capability, the capability to experiment, combine, and construct technologies. (3) Selection capability, the capability to select and adopt technologies for further technological activities. (4) Implementation capability, the capability to effectively implement technologies in the production process for generating desired outcomes.;The empirical observations on the semiconductor technological systems in Korea and Taiwan reveal both similarities and differences. One important similarity was a high degree of reliance on cross-national linkages, which greatly expanded both technological systems' absorptive capacities. Significant differences were found in terms of the variety and connectivity which are primarily reflected in varying degrees of development in selection and implementation capabilities. These differences imply different performance outcomes along the temporal dimension. Formal analysis is made to understand the dynamics of technological catching-up, based on the simplified models of the Korean and the Taiwanese technological systems. The analysis suggests that while both models have a high growth potential due to high absorptive capacity, (1) the Korean model leads to a faster growth in the short run, and (2) the Taiwanese model leads to a higher level of growth in the long run. A simulation analysis is made to illustrate this result. |
