Dynamic interaction between knowledge accumulation and technologic innovation capability in catch-up cycle

Current researches on the relationship between knowledge accumulation and technological innovation capability present inconsistent conclusion. This study proposes a framework that aims to explain how technological innovation capability evaluates in latecomers in the perspective of knowledge accumulation. To identify regularities in the process of catch-up cycle, this study develops a theoretical model and a system dynamics model to explore the dynamic relationship. Our analysis demonstrates that the improvement of technological innovation capability is not increased by knowledge stock itself, but the way of knowledge accumulation. Latecomers should adjust to a more systematic perspective to create and obtain knowledge value.