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The Tortoise and the Hare: Host Country Catching up at Sub-industry Groups
2012
The objective of this study is to elucidate the process of catching up in an industry exported to a host country by foreign entrants. Drawing on a longitudinal historical analysis of a new-born industry in an emerging economy, we examine catching up at the sub-industry group level. We identify three catching up patterns: intra-group of domestic firms, intra-group of foreign firms and inter-group dynamics. We develop a-five-stage model illustrating the industry evolution with catching up as the
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underling logic. Our analysis adds to catching up literature by providing a new level of analysis: sub-industry group. It also extends the research of catching up with theoretical insights from a low technology industry and opens up new possibilities for the research domain.
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