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Some Implications Of Endogenous Technological Change For Technology Policies In Developing Countries

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  • Richard Lipsey

Abstract

Part I contrasts the general types of policy advice that follow from three different approaches to understanding economic growth and technological change. Neoclassical theory gives policy advice that is assumed to be relevant for all countries at all times: remove sources of 'market failures'. Romer's branch of new macro growth theory stresses the nature of knowledge, non-rivalrous and partly appropriable. Structuralist-evolutionary theory is micro based and stresses the uncertainty that is associated with technological advance. Both of the latter approaches conclude that the neoclassical optimal allocation of resources is unachievable and hence the policy advice of removing impediments to achieving that optimum is not well grounded. As a result, policy advice for enhancing technological change must rely on a mixture of theory, empirical analysis and policy judgement. Part II deals with the large amount of context-specific policy advice that follows from structuralist-evolutionary theories.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 11 (2002)
Issue (Month): 4-5 ()
Pages: 321-351

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Handle: RePEc:taf:ecinnt:v:11:y:2002:i:4-5:p:321-351

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Related research

Keywords: Structuralist; evolutionary; infant industries; technology transfer; monopolistic competition; technology policies; JEL Classification: JH11; O38;

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Cited by:
  1. Alberto Melo, 2001. "Los sistemas de innovación en América Latina y el Caribe," Research Department Publications, Inter-American Development Bank, Research Department 4284, Inter-American Development Bank, Research Department.
  2. Aydogan, Neslihan & Lyon, Thomas P., 2004. "Spatial proximity and complementarities in the trading of tacit knowledge," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 22(8-9), pages 1115-1135, November.
  3. Basant, Rakesh & Chandra, Pankaj & Upadhyayula, Rajesh, . "Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations," IIMA Working Papers, Indian Institute of Management Ahmedabad, Research and Publication Department WP2011-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
  4. Alberto Melo, 2001. "The Innovation Systems of Latin America and the Caribbean," Research Department Publications, Inter-American Development Bank, Research Department 4283, Inter-American Development Bank, Research Department.
  5. Richard Lipsey, 2001. "Successes and failures in the transformation of economics," Journal of Economic Methodology, Taylor & Francis Journals, Taylor & Francis Journals, vol. 8(2), pages 169-201.

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