This document proposes an integrated capabilities accumulation strategy called "Integrated Capabilities Accumulation" as a Gerschenkronian catching-up strategy for developing countries. It builds on Gerschenkron's framework of simultaneous coordination across economic activities and extends it with concepts of learning capabilities, social capabilities, and physical capabilities from other literature. It also proposes using a "Low Cost space technology" pilot project to demonstrate this approach, noting characteristics like being a strategic technology, requiring skilled labor, and providing opportunities for training. The strategy aims to coordinate higher education, industry, R&D, and targeted projects to accumulate these integral capabilities for technological catch-up.

1. Integrated capabilities accumulation: A Gerschenkronian catching-up strategy Jelel Ezzine University of Tunis El-Manar (UTM), Tunisia [email_address]

2. Education is a social process; education is growth; education is not a preparation for life but is life itself . John Dewey

3. Outline Introduction Gerschenkron and catch up – extending the framework Integrated capabilities accumulation – the fundamental role of learning Technological and capacity competitiveness – Fagerberg 2005 Social and physical technologies – Nelson 2008 Learning as the most important process – Lundvall 2007 The proposed three fundamental capabilities Reverse engineering Gerschenkron catch up – Low Cost space technology Conclusion

4. Introduction (1:2) We do know that: developing countries are in dire need for applicable catch-up strategies that will allow them to converge to the developed world, and hence secure a better future for their citizens (Juma and Clark, 2002), We also do know: “ the futility of the search of any ‘magic bullet’ driving industrialization. The process of accumulation of technological and organizational capabilities does not play a crucial role - …- but such process has to be matched , first, by a congruent ‘political economy’ offering incentive structures conductive to ‘learning-base’ …, and, second, by a congruent macroeconomic management .” Cimoli et al. (2008)

5. Introduction (2:2) We still propose a “generic” catch-up strategy called “Integrated Capabilities Accumulation” built around triad: an extended version of the Gerschenkronian framework, a generalization of the latest findings regarding needed capabilities, a “ Low Cost ” pilot project, targeting a frontier technological niche.

6. Gerschenkron and catch up: extending the framework O'Brien, 1998: The key insight from Gerschenkron’s thesis is of a systemic nature, which is the necessity to integrate and simultaneously coordinate all components of the targeted economic activity. “ industrialization process begins only if the industrialization can proceed, as it were, along a broad front, starting simultaneously along many lines of economic activities.” “ Fruits of industrial progress in certain lines are received as external economies by other branches of industry whose progress in turn accords benefit to the former.”

7. Gerschenkron and catch up: extending the framework Higher Edu. Spin-Offs Ind. Niche R&D H. Edu. Tightly coordinated and managed targeted pilot project Gerschenkron Extended Gerschenkron

8. Integrated capabilities accumulation – the fundamental role of learning Technological and capacity competitiveness – Fagerberg 2005 , Social and physical technologies – Nelson 2008 , Learning as the most important process – Lundvall 2007 , The proposed three fundamental capabilities.

9. Integrated capabilities accumulation – the fundamental role of learning Technological and capacity competitiveness – Fagerberg 2005 : Capacity competitiveness Technological competitiveness Social and physical technologies – Nelson 2008 , Learning as the most important process – Lundvall 2007 , The proposed three fundamental capabilities.

10. Integrated capabilities accumulation – the fundamental role of learning Technological and capacity competitiveness – Fagerberg 2005 , Social and physical technologies – Nelson 2008 : Social technologies Physical technologies Learning as the most important process – Lundvall 2007 , The proposed three fundamental capabilities.

11. Integrated capabilities accumulation – the fundamental role of learning Technological and capacity competitiveness – Fagerberg 2005 , Social and physical technologies – Nelson 2008 , Learning as the most important process – Lundvall 2007 : Intangible resources Tangible resources The proposed three fundamental capabilities.

12. The proposed three fundamental capabilities Learning Capabilities (LC): Lundvall (2007): “ the most fundamental resource in the modern economy is knowledge and, accordingly, the most important process is learning . ” Lundvall and Johnson (1994): “… in an economy where the distribution of competence becomes more and more uneven and the capability to learn tends to become the most important factor behind economic success of people , organization and regions .” Social Capabilities (SC), Physical Capabilities (PC),

13. Reverse engineering Gerschenkron catch up – Low Cost space technology Key characteristics of the niche technology (in the making!): Strategic and dynamic “Low Cost” technology, High value added technology and large spectrum industries/services spillover, Requires highly skilled manpower, Motivating and inspiring pilot project, Bestows National and international visibility, Sufficiently available training infrastructure and know how, Largely available potential manpower, Strong and enduring political back up, Etc.

14. The skill a student acquires in a craft, and the habit he attains , correspond to the quality of instruction and the habit of the teacher . A. Ibnou Khaldoun