The Problem of Catch-Up in Developing Countries at the Level of the Essay

The Problem of Catch-Up in Developing Countries at the Level of the Nike In Relation To a Firm Level - Essay Example According to the research findings, the latter half of the 20th Century saw dramatic growth in industrial production and in the mass consumption in developing nations. The growth of industrial output in countries like China and India during this period was robust and to some extent, the process of catching-up also began in the technological field. The process is thus called "imitation to innovation" approach. This took place for the most part in traditional industries such as textiles and clothing and the earlier product generations of the machine tool and consumer electronics industries. Globalization has become increasingly important in determining the rate of economic growth, with estimations that emerging markets will account for a larger piece of the world economy by 2020. Studies suggest that the shift of labor-intensive production processes from regions like Western Europe to lower-cost economies will continue. In fact, it was during the 1980s that development theorists and pr actitioners began to re-conceptualize the catching up process, from one based primarily on the transfer of technology to one of learning to produce quality products efficiently. Evidence for the success of such a strategy was found in the growth of manufactured exports, notably from the Asian tigers. The indigenous manufacturing capabilities of such low-cost economies too are on an upward journey. These countries had progressively climbed the ladder in traditional industries such as textiles and clothing. This trend kept going even in consumer electronics, from low-cost assemblers of finished products to producers of higher value-added products, original equipment manufacturer (OEM) and, in a couple of cases, own brand manufacturers who had mastered the process from product conceptualization to the market.