Isolation avoidance in a sectoral innovation system: The case of the mobile communications sector in korea and japan

Abstract

This paper addresses the issue of creating and sustaining a new path in technological catching-up in a mobile communication sector. While catching-up literature suggests that late entrants may catch-up the advanced ones by creating a new technological path, this paper argues that path-creation must be complemented by Intra and Inter-Path Integration and Inter-Path Reconfiguration. In order to confirm this argument, this has paper analyzed the cases of Japanese and Korean mobile communications industries. Both countries created new technological paths, but the adoption and the further growth of the Japanese technological path was limited while the Korean path successfully expanded its market performance through the use of Intra and Inter-Path Integration and Inter-Path Reconfiguration in a mobile communication sector. These case studies support the argument that Path-Creation alone cannot be a reliable strategy for a late entrant and must be complemented by three stages corresponding to the sectoral innovation system framework; Intra and Inter-Path Integration and Inter-Path Reconfiguration.