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Andreoni, Antonio and Tregenna, Fiona (2020) 'Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa.' Structural Change and Economic Dynamics, 54. pp. 324-340.

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Instead of catching up with advanced economies, most middle-income countries have remained stuck in a middle-income trap. We identify and analyse the triple challenges of ‘breaking into’ the global economy, ‘linking up’ into global value chains while ‘linking back’ to the local production system, and ‘keeping pace’ with technological change and innovation. We focus specifically on what we term the ‘middle-income technology trap’: specific structural and institutional configurations that are not conducive to increasing domestic value addition and to sustained industrial and technological upgrading. We explore this through case studies of China, Brazil and South Africa and the analysis of the evolution of their industrial policies and specific institutions, specifically InnoFund model in China, the Embrapa system in Brazil, and the Manufacturing Competitiveness Enhancement Programme in South Africa. Industrial policy implications for middle-income countries in particular, and for developing countries more widely, are finally discussed.

Item Type: Journal Article
Keywords: Middle-income technology trap, Structural transformation, Industrial development, Technology upgrading, Industrial policy
SOAS Departments & Centres: Departments and Subunits > Department of Economics
ISSN: 0954349X
Copyright Statement: This is the version of the article accepted for publication in Structural Change and Economic Dynamics, 54. pp. 324-340 (2020), published by Elsevier. Re-use is subject to the publisher’s terms and conditions
DOI (Digital Object Identifier):
Date Deposited: 11 Jan 2023 13:25

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