Krystel Eve B.

Kagaoan
IV-BS Foreign Affairs
FOA 47

Case Analysis: The Role of Government in Acquiring Technological Capability: The Case of
Petrochemical Industry in East Asia

In today's hypercompetitive and ever-changing business climate, it is imperative for

companies to have the ability to quickly adapt to maintain their relevance. Because of the
relationship between a company's performance and its capacity to launch new goods over time,
technological competence is widely recognized as a critical component of a nation's overall
economic development. If the success of a brand-new product on global markets is dependent on
the development of technological proficiency, then developing market countries need to create
new research to keep up with the competition. In the provided chapter of the book, there has
been discussion and debate on whether the government should play a role in the brisk economic
expansion in the petrochemical industry seen in East Asia. Inquiries into the reason of the high
development rates in the high-performance Asian markets and efforts to draw an overall example
for other emerging economies have been shaped by two opposing views such as the business
view, in which government gets involved small in the market, and the developmentalist
interpretation, according to which it rules the market. The common ground between both schools
of thought is an understanding of the market and the state as competing systems for allocating
resources. The only real difference between them is how they evaluate whether government
intervention has been and should be used to fix market failures. It takes a more nuanced picture
of people and government by analyzing the extent to which public policy might support or
supplement coordination in the private sector. The foundation of this approach is the idea that
private organizations have significant benefits over public ones, especially with regards to
processing data that is already present. Meanwhile, it acknowledges that private sector capacities
are lower in emerging nations. Therefore, the market-enhancing perspective focuses an emphasis
on the ways through which public policy works to increase the capacity of the private sector to
address coordination challenges and combat market imperfections. Overall, the case study
acknowledges the great variety of governmental roles throughout East Asian economies as it
presents the market-enhancing perspective. When a product that is completely original and
innovative is released onto the market, the chances of that product being a financial success
increase. It is vital for the firm to extend the marketplace into which its products can be marketed
by expanding internationally for the company to be able to keep up with the rising demand.