Divergence and Convergence in Industrial Targeting

Taiwan showed a more linear development from its earlier lower-end IT activities to more design-oriented, higher value-added products. Meanwhile, Korea progressed into similar sectors with a more abrupt shift. Its course correction was more dramatic. Taiwan's earlier and more open FDI and technology transfer orientation permitted it to smoothly progress into an alignment with the global information society and the knowledge imperative. Also, its more autonomous bureaucracy focused on the entrepreneurial culture on the island which proved crucial for flexible, customized ICT manufacturing. In contrast, Korea has had trouble with its centralized bureaucracy and the monolithic chaebol, both of which are not conducive to frontier-innovation. It was not able to align itself quite a swiftly with global information industry trends. However, thanks to the resource-wealth of the chaebol they have been able to comply with this new frontier-knowledge imperative quickly in the 1990s. Korea is now on its way to matching Taiwan's more steady, swift, and flexible efforts.