Catching up in new wave technologies

In the last quarter of the 20th Century, new technologies and competitive practices challenged earlier opportunities for entry from a low skill base and the pursuit of an incremental process of catching up. In traditional manufacturing industries, these changes pose few problems at the entry level, though they render catch-up processes more difficult to sustain. In "new wave technologies", such as those growing out of biotechnology, the science base, patent intensity and systems' embeddedness have raised the barriers to entry and narrowed opportunities for incremental catching up from a low skill base. This paper explores these changes and their implications for traditional entry and catch-up strategies in developing countries.