The East Asian Miracle and Information Technology: Strategic Management of Technological Learning

This study focuses on the process of technology catch-up and competitive advantage creation, drawing on the successful experiences of Japan, Korea, Singapore, Taiwan, and Hong Kong–the newly industrialized countries (NICs). It shows how the NICs have exploited the opportunities made possible by the information technology (IT) revolution and built sustainable competitive advantage in many high value-added industries and services. These countries became leading producers and users of informatics by developing consensual strategic management, characterized by a shared vision of the information revolution, outward orientation towards the global economy, strategic intent to build core competencies in informatics, agile planning and multi-level learning in developing their national information infrastructures, and the use of government-business partnerships to hasten response to opportunities. The study examines the role of government in unleashing private sector response, promoting the IT industry, diffusing the technology, and focusing resources on strategic elements of the national information infrastructure. It contrasts this role among the NICs. The study explores the role of the private sector, particularly industrial associations, in influencing the development and use of the new technologies. The interplay between government and corporate strategies also presents important lessons for technological diversification. The study focuses on areas where the experience of the NICs is replicable. It concludes with recommendations for aid agencies to help developing countries adjust to the emerging, information-driven, global economy, and argues that this new role is essential for aidagencies to remain relevant in the information age.