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expressions of these spillovers (Darwent, 1969; Hermason, 1972; Higgins and Savoie, 1995;
Stimson et al, 2002). When intermediate development steps are shortened or eliminated these
policies are often referred to as ‘leapfrog’ strategies - typical of some successful Asian
economies (Singh, 1999).

Freeman (1987) and Nelson (1993) analyze the role of technological diffusion from a
different perspective and conclude that rather than a simple flow of knowledge across country
borders, technological advance and innovation relies on specific firms, networks, and economic
institutions. They note the successful economic stories of the US in the 19th century, Japan in the
1960s, Korea and Singapore and other Asian economies in the 1980s, and more recently China,
who all benefited from the exploitation of opportunities for technology catch-up (Liu, 2005). To
some extent this view integrates the role of government into the technological innovation
process, although most studies of Asian countries isolate the two processes of government and
free market decision making (Amsden, 1989; World Bank, 1993).

Another perspective based on technological learning and the role of national innovation
systems also is discussed (Bell and Pavitt, 1997; Kim, 1997; Lee and Lim, 2001). Lee and Lim
(2001) observe that different technological regimes have different patterns of innovation and
diffusion across industries and regions or even countries. However, it is important to remember
that latecomer firms or sectors are not ensured of catch up performance with advanced
economies even when following similar strategies because the contextual economic environment
is always changing. So what worked in one environmental situation may not be effective in
another.

China's Mobile Handsets FINAL DRAFT 2006.sph ERSA2006 Greece



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