An exploratory study on innovation policy in eight Asian countries

Purpose This study aims to investigate the evolution of eight Asian countries' innovation policy instruments during three economic development phases. Another goal is to examine common and different policy instruments of Japan, Korea and China, which have already reached the post-catch-up stage, to provide lessons to less-developed and developing Asian countries. Design/methodology/approach This study uses a qualitative research methodology, in particular a narrative approach. For triangulation, this paper uses a wide range of secondary data. The authors selected eight Asian countries by using various criteria, including income level and market size, and examined each country in terms of innovation performance and evolution of innovation policy instruments. The evolution of innovation policy in each country is investigated during three economic development phases: pre-industrialization, industrialization and catch-up and post-catch-up. Findings The findings show, first, that a higher research and development (R&D) expenditure as a percentage of gross domestic product (GDP), R&D activities dominated by private research organizations and more vigorous patent activities by residents than nonresidents are the most critical factors for becoming a high-income country. Second, innovation policy should be suitable for attaining aims, which are different at each economic development stage. Third, seven lessons from three prosperous Asian countries are crucial for economic development: securing political stability; increasing R&D expenditures; facilitating the acquisition, diffusion and internalization of technology; encouraging government-industry-university collaborations; using the selection and concentration strategy; changing the governmental role from regulator to facilitator; and establishing a legal framework. Originality/value It is difficult to find research that systematically compares three or more Asian countries' innovation policies over the long term. This study fills this gap and helps scholars and field workers increase their understanding of innovation policy in eight Asian countries. It also contributes to providing lessons for practitioners that could help developing and less-developed Asian countries establish a suitable innovation policy for each economic development stage.