The lion with wings: Innovation system dynamics in the aerospace industry of Singapore

Abstract

This paper investigates the emergence and growth of Singapore's aerospace manufacturing industry. Singapore is unique among latecomers in the sector, because of the continuous growth it achieved by establishing world-class component manufacturing and maintenance, repair and overhaul facilities. We use a sectoral innovation system dynamics framework to analyse the evolution of institutions and technological capabilities in the sector. Empirical evidence on innovative and productive activities shows that a strategic choice of openness, in addition to the strong linkages between companies and between industry and government facilitated the emergence of a sectoral innovation system early on. We also find that the initial choice of specialisation and the close embeddedness of the sectoral innovation system in the national innovation system allowed Singapore to flexibly respond to global and regional crises in the sector and sustain growth. Copyright © 2013 Inderscience Enterprises Ltd.