\”The role of the private sector is critical because innovation at the technology frontier is quite different in nature from catching up technologically. It is not something that can be achieved through government planning.\”
That\’s about China but it applies everywhere.
The technological frontier is where, by definition, you don\’t know what\’s going to work, what\’s the best thing to do. So how can it be planned?
It\’s one of the critiques I\’ve got of Ha Joon Chang. He often uses the example of S. Korea but what he\’s talking about when he does is their period of catch up growth. It\’s not applicable to a country at that frontier. Doesn\’t stop people saying that he\’s arguing for planning in our economy though, does it?