Technological Capabilities and Economic Development in Emerging Industries
Summary
Technological capabilities underpin the ability of firms and economies to develop, adapt and commercialise novel technologies, acting as a cornerstone for growth in emerging industries. These industries—marked by rapid technological change, high knowledge intensity and evolving institutional frameworks—illustrate how capability accumulation drives economic development and global value-chain participation. Firms build capabilities through R&D investments, diverse knowledge-sourcing channels, strategic partnerships and foreign direct investment. Economic advancement in such sectors often follows non-linear trajectories shaped by industrial policy, institutional reforms and international market forces. Windows of opportunity emerge when shifts in technology, demand or regulation create openings for latecomer firms to catch up with incumbents. The rise of general-purpose technologies, such as artificial intelligence and renewable energy systems, has opened novel pathways for leapfrogging, especially when supported by targeted policy measures. Recent work emphasises firm-level heterogeneity, cross-border learning mechanisms and the interplay between market dynamics and institutional change in shaping catch-up processes. A nuanced understanding of these interconnections is essential for designing policies that foster inclusive growth, bolster industrial resilience and promote sustainable development in emerging sectors.
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Technological Capabilities and Economic Development in Emerging Industries publication trend
The graph below shows the total number of articles in technological capabilities and economic development in emerging industries across all publications each year (not limited to Nature Index journals).
Technical terms
Technological capabilities: The skills, knowledge and organisational resources that enable firms to develop, adapt and implement new technologies.
Windows of opportunity: Periods when shifts in technological, market or regulatory conditions allow new or latecomer firms to achieve significant performance gains or catch up with incumbents.
General-purpose technology: A technology with pervasive applications across multiple sectors that drives complementary innovations and reshapes economic activities.
References
- A firm-level perspective on windows of opportunity. Technology in Society (2023).
- Do green foreign direct investments increase the innovative capability of MNE subsidiaries?. World Development (2023).
- Artificial intelligence and firm growth — catch-up processes of SMEs through integrating AI into their knowledge bases. Small Business Economics (2023).
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