What makes a successful industry-level catch-up? General framework and case study of China’s LED industry

Abstract

How latecomers from emerging countries catch up on technological innovation is an important topic for industrial practitioners, policymakers, and academic researchers. This study systematically reviews 43 empirical studies on the precursors of industry catch-up in emerging countries. A general framework on what makes a successful catch-up in latecomer industries is suggested based on literature review. The framework comprises six generic determinants, including technological capability, business ecosystem, government roles, market condition, technological regime, and windows of opportunity. In addition, this framework is applied to the Chinese LED industry, and a case analysis of the catch-up is performed in Chinese LED 2 firms.