ABSTRACT
This chapter aims to develop a comprehensive review of relevant literature. It argues that even after considering two streams of thoughts as foundations, the literature somehow goes against the accumulativeness principle of evolutionary theory in their analysis of capability upgrade, and also the Gerschenkronian perspective in interpreting the sources of strategic transition for developing country firms. Since the purpose of technological learning for firms in developing countries is to catch up with frontier firms, the knowledge new to their previous experiences is important. In reference to studying technological learning and relevant capability construction in developing countries, the conventional wisdom has already provided profound insights. In reference to studying technological learning and relevant capability construction in developing countries, the conventional wisdom has already provided profound insights. Strategic intent or financial commitment cannot be made just simply through a selection of strategic decision. Resource allocation is closely related to authoritative co-ordination and control systems within firms.
