Legal Frameworks For Smart Developmental States: Embedded Autonomy, Knowledge Generation, And Crony Capitalism Prevention In The Digital Economy
- IJLLR Journal
- 2 days ago
- 1 min read
Vu Minh Chau, FPT University Vietnam, PhD Candidate at University of Law – Vietnam National University
ABSTRACT
Legal institutions determine the success or failure of developmental states in fostering private sector knowledge generation while preventing crony capitalism and state capture. This research examines how contemporary developmental states can construct legal frameworks that simultaneously enable embedded autonomy and protect intellectual property rights in the knowledge economy. Using Vietnam's Resolution 68-NQ/TW as a primary case study, this analysis demonstrates that successful Smart Developmental States require sophisticated legal architectures combining state coordination capacity with market competition mechanisms. The study employs Peter Evans' embedded autonomy theory alongside contemporary artificial intelligence developments to analyze legal framework requirements. Evidence shows that legal institutions must create "embeddedness" through formal state-private collaboration channels while maintaining "autonomy" through independent monitoring and performance-based allocation systems. The research reveals that intellectual property protection frameworks must balance innovation incentives with knowledge diffusion requirements, particularly as artificial intelligence transforms knowledge creation processes. Vietnam's legal framework provides empirical evidence that transparent administrative procedures, competition law enforcement, and professional bureaucratic standards can prevent rent-seeking behavior while fostering innovation. These findings contribute to understanding how legal institutions can structure state-society relations for sustainable knowledge- driven development without succumbing to the institutional failures that have characterized crony capitalist systems in other developing economies.
Keywords: embedded autonomy, developmental state, legal frameworks, intellectual property, knowledge economy, crony capitalism
