Columbia International Affairs Online: Policy Briefs

CIAO DATE: 06/2012

FDI, catch-up growth stages and stage-focused strategies

Terutomo Ozawa

May 2012

Columbia Center on Sustainable Investment


For the initial stage of catch-up growth, the “FDI-led takeoff” is an expedient alternative to the traditional infant-industry protection approach. Higher stages call for more nuanced, national-interests-dictated strategies to enhance domestic knowledge capability. A stages perspective cannot be overemphasized.