Asian-tiger governments are steering their economies with a lighter touch

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Asian-tiger governments are steering their economies with a lighter touch
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The Asian tigers have become hotbeds for innovation. But they sometimes struggle to maintain public support for their cutting-edge work

that originated in Singapore, it was improbably grim and bloody. Last month Jack and 49 others boarded a transport aeroplane and parachuted onto an island. Their mission was simple: kill or be killed. Jack picked up grenades and worked his way to an abandoned factory. He crouched for safety, thinking he had escaped detection. He was wrong. After a hail of bullets, silence descended. Jack had once again failed to pass level one.

Industrial policy was a big factor in the tigers’ take-off. Even the International Monetary Fund, traditionally a sceptic, published a lengthy paper this year about the success of their government-led models. But what works for a developing country does not necessarily help a wealthy one. In the 1970s, the tigers could follow others. South Korea’s focus on heavy industry borrowed liberally from Japan. They could also license advanced technology, as Taiwan did in its semiconductor sector.

Some of the elements are obvious: good infrastructure, from ports to internet; openness to trade; highly educated workforces; and high spending on research and development . But the tigers also have innovative ways to promote innovation.Taiwan has one of the world’s most robust frameworks to encourage lending to small- and medium-sized enterprises , the kinds of firms that have ideas but few resources.

South Korea has some of the best infrastructure in the world for autonomous vehicles, including world-class chipmakers and carmakers, as well as a growing 5network. The government is supportive, permitting tests on real roads for vehicles that prove themselves at test sites. Why then is South Korea ranked only 13th byOne reason is the country’s ambivalence towards other related technologies, such as ride-sharing apps.

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