How a latecomer succeeded in a complex product system industry: three case studies in the Korean telecommunication systems

Abstract

Catching up with the pioneers in Complex Product and System (CoPS) is not easy because CoPS is very different from the mass-produced goods in which latecomers have specialized. Despite being a latecomer, Korea has succeeded in CoPS, particularly in the telecommunication systems industry. This study examines Korea's success using three examples of highly sophisticated cutting-edge systems: Time Division Exchange, Code Division Multiple Access, and Wireless broadband. This study points out several important implications. First, institutions and political will played a very important role in all three cases. Second, acquisition or utilization of major capabilities transitioned into spontaneous participation, global networking, standardization of activities and policies, and emphasis on in-house research and development. Third, collaboration with an international standardization work group was a key to Korea's rise as a global telecommunications leader. Finally, large Korean firms played a critical role in catching up with telecommunication system industry leaders.