ABSTRACT
Several things stand out in the pattern of rapid technological transformation in Korea. First, Korea has benefited greatly from imports of foreign technology. What is interesting in Korea is that, compared with other NICs such as Brazil, Mexico, Argentina, and India, Korea relied least on direct foreign investment and licensing but most on turnkey plants and imports of capital goods. Informal transfer of foreign technology has also played an important role in broadening the capability of exporters and small firms in developing new products (Kim and Kim, 1985). Westphal, Kim and Dahlman (1975) conclude on the ways Korean firms acquired technological capability:
‘South Koreans have acquired a good deal of technological capability, but they have done so in piecemeal fashion as successively more sophisticated capabilities have been acquired and put into practice. The process of acquisition has clearly been one of purposive effort involving a succession of incremental steps, with production capabilities being developed somewhat in advance of investment (and innovation) capabilities. The selectivity of import substitution for the elements of technology has meant continued reliance on imports for at least some elements in almost all industries, but the pattern of imports has continually shifted as local capabilities have replaced foreign ones. . . .’ (pp. 213–14)
