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Innovation Systems and the Competitive Progress in Developing Economies

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  • Metcalfe, Stan
  • Ramlogan, Ronnie

Abstract

There is a very real sense that in the aftermath of the limited success of the development paradigm (recipe) of the Washington consensus based on the pillars of liberalization, privatization and deregulation, new and challenging thinking and analysis need to be brought to bear on the problems faced by developing countries. While sound macro policies and low inflation are undoubtedly important precursors to self sustainable growth, they are not in themselves sufficient to deliver development. We argue that if development is a matter of self transformation arising from within an economy, then innovation must play a central role in the process and so to must the capacity for an economy to develop, integrate and adapt to novelty. This is at the core of the concept of self sustaining development and indeed why development is an emergent phenomenon. Thus the key questions for policy makers are: How can a transformation of innovation performance be achieved in a competitive international economy? What are the appropriate policy instruments? What role is there for universities? What stimuli can be given to entrepreneurial action? We explore these in terms of a critical evaluation of the idea of innovation systems and of the nature of innovation policy appropriate to innovation based development.

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Bibliographic Info

Paper provided by University of Manchester, Institute for Development Policy and Management (IDPM) in its series Centre on Regulation and Competition (CRC) Working papers with number 30672.

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Date of creation: 2005
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Handle: RePEc:ags:idpmcr:30672

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Keywords: International Development;

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  1. Rosenberg, Nathan, 1990. "Why do firms do basic research (with their own money)?," Research Policy, Elsevier, vol. 19(2), pages 165-174, April.
  2. Antonelli, Cristiano & Patrucco, Pier Paolo & Quatraro, Francesco, 2008. "The governance of localized knowledge externalities," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200801, University of Turin.
  3. Alcorta, Ludovico & Peres, Wilson, 1998. "Innovation systems and technological specialization in Latin America and the Caribbean," Research Policy, Elsevier, vol. 26(7-8), pages 857-881, April.
  4. Nelson, Richard R., 2004. "The market economy, and the scientific commons," Research Policy, Elsevier, vol. 33(3), pages 455-471, April.
  5. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
  6. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  7. Lynn Mytelka, 2000. "Local Systems Of Innovation In A Globalized World Economy," Industry and Innovation, Taylor & Francis Journals, vol. 7(1), pages 15-32.
  8. Dieter Ernst, 2000. "Global Production Networks and the Changing Geography of Innovation Systems: Implications for Developing Countries," Economics Study Area Working Papers 09, East-West Center, Economics Study Area.
  9. Carlsson, Bo & Jacobsson, Staffan & Holmen, Magnus & Rickne, Annika, 2002. "Innovation systems: analytical and methodological issues," Research Policy, Elsevier, vol. 31(2), pages 233-245, February.
  10. Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536, September.
  11. Metcalfe, J.S. & Ramlogan, R., 2005. "Competition and the regulation of economic development," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 215-235, May.
  12. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
  13. J. Metcalfe, 2004. "The entrepreneur and the style of modern economics," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 157-175, 06.
  14. Freeman, Chris, 1995. "The 'National System of Innovation' in Historical Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 5-24, February.
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Cited by:
  1. Nathalie Lazaric & Valérie Mérindol & Sylvie Rochhia, 2011. "Changes in the French defence innovation system: New roles and capabilities for the Government Agency for Defence," Post-Print hal-00599727, HAL.
  2. Ponomariov, Branco & Toivanen, Hannes, 2014. "Knowledge flows and bases in emerging economy innovation systems: Brazilian research 2005–2009," Research Policy, Elsevier, vol. 43(3), pages 588-596.
  3. Bleda, Mercedes & del Río, Pablo, 2013. "The market failure and the systemic failure rationales in technological innovation systems," Research Policy, Elsevier, vol. 42(5), pages 1039-1052.
  4. Coenen, Lars & Benneworth, Paul & Truffer, Bernhard, 2012. "Toward a spatial perspective on sustainability transitions," Research Policy, Elsevier, vol. 41(6), pages 968-979.
  5. Dodgson, M. & Foster, J. & Hughes, A. & Metcalfe, J.S., 2009. "Systems Thinking, Market Failure, and the Development of Innovation Policy: The Case of Australia," ESRC Centre for Business Research - Working Papers wp397, ESRC Centre for Business Research.
  6. Lenihan, Helena, 2011. "Enterprise policy evaluation: Is there a 'new' way of doing it?," Evaluation and Program Planning, Elsevier, vol. 34(4), pages 323-332, November.
  7. Chataway, Joanna & Hanlin, Rebecca & Mugwagwa, Julius & Muraguri, Lois, 2010. "Global health social technologies: Reflections on evolving theories and landscapes," Research Policy, Elsevier, vol. 39(10), pages 1277-1288, December.
  8. Engel, Nora, 2008. "Drivers and Barriers of Innovation Dynamics in Healthcare - Towards a framework for analyzing innovation in Tuberculosis control in India," MERIT Working Papers 077, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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