1Institute of Economics and World Economy, Vietnam Academy of Social Sciences (VASS), Hanoi, Vietnam
2VNU International School, Vietnam National University, Hanoi, Vietnam
3Vietnam Institute for Real Estate Market Research and Evaluation (VARS-IRE), Vietnam Association of Realtors (VARS), Hanoi, Vietnam
Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.
Why do four ASEAN middle-income economies—Malaysia, Thailand, Indonesia and the Philippines—pursuing comparably ambitious digital–green industrial strategies between 2018 and 2023 generate markedly divergent upgrading trajectories? This article argues that the explanatory variable lies not in policy content but in policy architecture: the institutional configuration through which industrial policy is translated from strategic vision into firm-level action. Two dimensions of architecture prove decisive: coordination quality, measuring the degree to which inter-ministerial mechanisms generate accountability for diffusion outcomes; and integration degree, measuring the extent to which digital and green transformation mandates are governed jointly rather than in parallel. Drawing on a structured focused comparison across four cases selected on a most-similar systems logic, the article derives a 2×2 typology—Integrated Coordinator (Malaysia), Selective Institutionaliser (Thailand), Ambitious Fragmentor (Indonesia) and Document-policy State (the Philippines)—whose predicted upgrading trajectories are confirmed by firm-level technology absorption data (World Bank Enterprise Surveys), economic complexity indices, manufacturing value-added per worker and green export intensity. The comparative analysis identifies two asymmetric failure modes: coordination failure produces stagnation, in which technology does not reach small and medium enterprises; integration failure produces incoherence, in which digital and green transitions pull firms in contradictory directions. The article situates Vietnam at Type III and derives a sequenced institutional reform pathway from comparative logic rather than generic prescriptions. The theoretical contribution is the introduction of policy architecture as a meso-level construct bridging the macro literature on mission-oriented industrial policy and the firm-level literature on absorptive capacity.
Industrial policy architecture, digital–green twin transition, technology diffusion, developmental state, ASEAN, comparative political economy, Vietnam
Aiginger, K., & Rodrik, D. (2020). Rebirth of industrial policy and an agenda for the twenty-first century. Journal of Industry, Competition and Trade, 20(2), 189–207.
Bell, M., & Pavitt, K. (1993). Technological accumulation and industrial growth: Contrasts between developed and developing countries. Industrial and Corporate Change, 2(1), 157–210.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.
Doner, R. F., Ritchie, B. K., & Slater, D. (2005). Systemic vulnerability and the origins of developmental states. International Organization, 59(2), 327–361.
Evans, P. B. (1995). Embedded autonomy: States and industrial transformation. Princeton University Press.
Flanagan, K., Uyarra, E., & Laranja, M. (2011). Reconceptualising the ‘policy mix’ for innovation. Research Policy, 40(5), 702–713.
Fukuyama, F. (2013). What is governance? Governance, 26(3), 347–368.
George, A. L., & Bennett, A. (2005). Case studies and theory development in the social sciences. MIT Press.
Growth Lab at Harvard University. (2023). The atlas of economic complexity. Harvard Kennedy School.
Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., Simoes, A., & Y
ld
r
m, M. A. (2014). The atlas of economic complexity: Mapping paths to prosperity. MIT Press.
Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570–10575.
International Energy Agency. (2023). Southeast Asia Energy Outlook 2023.
Johnson, C. (1982). MITI and the Japanese miracle: The growth of industrial policy, 1925–1975. Stanford University Press.
Lall, S. (1992). Technological capabilities and industrialization. World Development, 20(2), 165–186.
Larrue, P. (2021). The design and implementation of mission-oriented innovation policies (OECD Science, Technology and Industry Policy Papers, No. 100). OECD.
Malaysia Digital Economy Corporation. (2022). Annual report 2022. MDEC.
Mazzucato, M. (2018). Mission-oriented innovation policies: Challenges and opportunities. Industrial and Corporate Change, 27(5), 803–815.
Przeworski, A., & Teune, H. (1970). The logic of comparative social inquiry. Wiley-
Interscience.
Rodrik, D. (2014). Green industrial policy. Oxford Review of Economic Policy, 30(3), 469–491.
Skocpol, T. (1985). Bringing the state back in. In P. B. Evans, D. Rueschemeyer, & T. Skocpol (Eds), Bringing the state back in (pp. 3–37). Cambridge University Press.
Stockholm Environment Institute. (2022). BCG Economy Assessment Report: Thailand’s Bio-Circular-Green economic model.
UNCTAD. (2023). World Investment Report 2023: Investing in sustainable energy for all. United Nations.
United Nations Industrial Development Organization. (2023). Industrial Development Report 2024.
WBES. (2019/2022). Enterprise Surveys [dataset]. World Bank Group.
Wade, R. (1990). Governing the market: Economic theory and the role of government in East Asian industrialization. Princeton University Press.
World Bank. (2023). Malaysia Economic Monitor: Securing growth.
World Trade Organization. (2022). Environmental goods agreement trade data. WTO.