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Market-oriented reforms, globalization and the recent transformation of Latin American innovation systems

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  • Jorge Katz

Abstract

Market-oriented structural reforms were implemented in Latin America under the expectation that the transition from an "inward-oriented", "state-led" growth strategy to one which was more "market-led" and "outward-oriented" was going to be rewarded by a sustainable long-term improvement in the region's rate of economic expansion and productivity growth. The competitive discipline imposed by a more open and deregulated economic regime was expected to induce faster innovation and technological modernization efforts from firms and individuals and, thereafter, a gradual but steady "convergence" to world-wide income and productivity standards. A global look at the region's performance throughout the 1980s and 1990s tells us that such a priori expectation was far from realistic. The paper examines why this has been so.

Suggested Citation

  • Jorge Katz, 2004. "Market-oriented reforms, globalization and the recent transformation of Latin American innovation systems," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 375-387.
    • Handle: RePEc:taf:oxdevs:v:32:y:2004:i:3:p:375-387
    DOI: 10.1080/1360081042000260584
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    Cited by:

    1. José Gabriel Palma & Joseph E. Stiglitz, 2016. "Do Nations Just Get the Inequality They Deserve? The “Palma Ratio” Re-examined," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 2, pages 35-97, Palgrave Macmillan.
    2. Alvaro Cuervo-Cazurra & Ajai Gaur & Deeksha Singh, 2019. "Pro-market institutions and global strategy: The pendulum of pro-market reforms and reversals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 598-632, June.
    3. Alvaro Cuervo-Cazurra & Luis Alfonso Dau, 2009. "Structural Reform and Firm Exports," Management International Review, Springer, vol. 49(4), pages 479-507, September.
    4. Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
    5. Palma, J.G., 2012. "Was Brazil's recent growth acceleration the world's most overrated boom?," Cambridge Working Papers in Economics 1248, Faculty of Economics, University of Cambridge.
    6. Alvaro CUERVO-CAZURRA & Luis Alfonso DAU, 2008. "Structural Reform And Firm Profitability In Developing Countries," William Davidson Institute Working Papers Series wp940, William Davidson Institute at the University of Michigan.
    7. Dau, Luis Alfonso & Moore, Elizabeth M. & Kostova, Tatiana, 2020. "The impact of market based institutional reforms on firm strategy and performance: Review and extension," Journal of World Business, Elsevier, vol. 55(4).
    8. Lynn K. Mytelka, 2006. "Divides and rules: the impact of new wave technologies on learning and innovation in the South," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(6), pages 861-876.

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