The key ingredient to the success of Korea and Taiwan, but is missing in the Philippines industrialization effort, is the conscious, competent, and concerted practice of technology management by the national government and domestic firms. Most Philippine firms have remained mere importers and users of foreign technologies. As a result, they have been trapped in a vicious circle of technological laggardness and dependence that has stunted the competitiveness and productivity of Philippine industries. Hence, the most important roles of the government are to secure a stable and conductive macroeconomic environment for long-term investments and to provide adequate educational, technological and infrastructure support to industrial development.
