The most significant factor in rapid industrialization was the adoption of an outward-looking strategy in the early 1960s. This strategy was particularly well-suited to that time because of South Korea's poor natural resource endowment, low savings rate, and tiny domestic market. The strategy promoted economic growth through labor-intensive manufactured exports, in which South Korea could develop a competitive advantage. Government initiatives played an important role in this process. Through the model of export-led industrialization, the South Korean government incentivized corporations to develop new technology and upgrade productive efficiency in order to compete in the highly-competitive, global market. By adhering to state regulations and demands, firms were awarded subsidization and investment support to rapidly develop their export markets in the fast-paced, evolving international arena. In addition, the inflow of foreign capital was greatly encouraged to supplement the shortage of domestic savings. These efforts enabled South Korea to achieve rapid growth in exports and subsequent increases in income.