This study examines the technical change and efficiency in knowledge-based production of the selected East-Asia Countries using a panel stochastic frontier analysis. The empirical results indicate that Japan, Singapore, Korea, Malaysia and China appear to be the most efficient countries in the region in term of high-tech production. Indonesia and Philippines, on the other hand, appear to be the least efficient ones. In regard to the issue of catch-up and convergence, the results show that Malaysia and Korea are catching up with their developed counterpart, Japan; while the others are still not on the right path of catching up. In general, all the ASEAN-five-plus-three countries have exhibited good technical progress and have achieved a positive total factor productivity (TFP) growth in the period of 1992-2005. The overall increase in technical change indicates evidence of innovation in these countries.
JEL: D24; O47; O32