East-Asian Crisis

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Has state played a leading role in upgrading technologies in Asia Pacific? Answer with reference to relevant theories and use comparative country or corporate examples. Introduction: The state is a lever that navigates economic process. It is managed by the country government which consists of all educational, socio-cultural, economical and geographical factors. The national innovation systems in Asia have a great significance in the process of technology adjustment (the national institutions, their incentive structures and their competencies, that determine the rate and direction of technological learning (or the volume and composition of change generating activities) in a country.” (Patel and Pavitt (1994: 79)) (4) It sustains governmental institutions and forms economic conditions and opportunities. It influences a market by all restrictions and policies which navigate all import and export activities. The Asia Pacific region includes one of the most economically developed countries in the world. According to academic articles(8) developmental states as South Korea, Japan and Taiwan quickened their industrialisation in order to synchronise their economies with globalisation growth. From a historical perspective South Asia went through enormous industrial and state transformation after 2nd World War till the beginning of 21st century. An effective industrialisation process created the need of upgrading technologies and expanding business relations so to sustain the Asian competitive advantage and stabilise its economy. Furthermore a governmental institutional reform appeared to be essential element of the whole adjustment stage. The “tiger”(9) economies of Hong Kong and Singapore (plus these of South Korea and Taiwan) impressively adapted to balanced level of navigating their market and a “miracle” GDP growth followed. Examining the transformation processes in these economies creates an objective view of how the state influenced changes in technologies and why it has such a significant part in the East-Asian success. Body:

The developmental states
Japan: The process of industrialisation is a key developmental factor. It emerged in the beginning of the 20th century by the development of four machine industries: the rolling stock, spinning and weaving machines, machine tools and electric machinery(5)Between all of them the government held strongest influence on the rolling stock-a sub railway system which is an official representative of the system, having trade responsibility and negotiates with suppliers(6).The JNR(Japanese National Railway) policy changed after the 1950s and the private sector started managing its policies with governmental assistance. The rolling stock trading process established the Japanese co-operation with West-European suppliers. Essential approaches like government’s guidance in applying industrial policy, adjustment in labour-management relations, tolerating entrepreneurial firms seen as innovators instead of the zaibatsu-structured equivalents, were taken (3).The mentioned events , concerning Japanese technology adjusting, show the strong relation between state policies and technology level . The state itself is the agent which drives all innovations by the power of its policies and regulations. It played a main role in the factory legislation. Women workers needed protection and they could only receive it by governmental intervention. A report by AAB(Agricultural Affairs Bureau) in 1900 confirmed the negative affect of night shifts onto labour efficiency and technical progress. By taking in consideration this example the state role can be considered as more than crucial. It maintains the economy growth by securing its population conditions (human rights; socio-cultural perspective).In this way it sustains the workforce of the country, which is a main element of stabilising competitive advantage. Despite the fact that most economic articles stress on the “Japanese Miracle”(1) as a...
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