Why Technological Spillovers elude Developing Countries A Dynamic Non-linear Model
AbstractThis paper attempts to theoretically understand the process of catching-up or falling behind particularly within the context of developing countries. The main aim of the paper consists in investigating the impact of domestic innovation, via its interaction with the learning capability, on the technology gap of an economy. More specifically, we seek to shed some light on why the tendency for poor countries to fall further behind, despite efforts to improve their learning capabilities, appears pervasive. Our analysis is based on a simple model of technology gap elaborated by Verspagen (1991). We find that domestic innovation, a critical component for the development of an absorptive capacity, is a significant determinant of whether an economy catches-up or falls further behind.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 06-02.
Date of creation: 2006
Date of revision:
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Web page: http://www.druid.dk/
Technology gap; absorptive capacity; developing countries;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
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