An Analysis of Technological Convergence Using Industry Data: Catch-Up or Leapfrogging Path

This study tests the hypothesis of technological convergence in the Korean industry by analyzing the relationship between productivity and technological imitation, using the DEA methodology and panel unit root techniques. Technological convergence is generally achieved through technological imitation factors, and the mechanism of technology catch-up has a determining influence on economic and industrial growth. In this study, we test the existence of technological convergence through a two-stage analysis. We first determine the degree of technological imitation and then conduct a panel unit root test to establish the relationship between total technological capacity and technological imitation. Our findings, from analyzing nine Korean industries over a period ranging from 1970 to 2003, were as follows: first, based on our results, we could not reject the hypothesis of technological convergence, with regard to the relationship between technological imitation and total factor productivity. This study result suggests the catch-up rather than leapfrogging growth path in Korea industry. Second, our results support the hypothesis of a conditional technological convergence rather than an absolute technological convergence. Our results, therefore, suggest that diversified strategies are more effective than homeogenous strategies for promoting industrial growth in Korea.