Haider A. Khan goes beyond the study of catch-up technology and raises the question of innovation processes that are the key to the future growth and prosperity of the East Asian economies. This is particularly important in the aftermath of the Asian financial crises that have cost these economies much. How can newly industrialized economies achieve cohesive systems of innovation for sustainable growth? The author offers a novel theory of innovation systems with concrete case studies to illustrate its usefulness.

This book explores the notion of a technological system and more specifically the distinction between modern and traditional technological systems. Using highly disaggregated data for a range of sectors and developing countries we have applied this distinction to micro - as well as macro-economic policy issues. By identifying distinct systems of technology in a multisectoral model of the economy we have been able to quantify certain aspects of those systems within a rigorous conceptual framework. The relationship between income distribution, the choice of technology and its subsequent impact...