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Creating the Capacity to Benefit from Technological Change in Developing Countries

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Author Info
Wamae, Watu () (CEDERS, Faculté des Sciences Economique et Gestion, Université de la Méditerranée)
Abstract

What really makes an economy competitive? This paper reviews and discusses how the capacity to generate, exploit and diffuse new knowledge is key in enabling countries to capitalise on challenges brought about by rapid technology-driven transformations rather than succumb to their adverse effects. In particular, we look at the importance of new knowledge emanating from both domestic and foreign sources in the innovation process in view of the contention that "international technology transfer" is critical for growth in developing countries. We find that there is a tight link between high rates of technology acquisition and high investment ratios, and that the absorptive capacity is a sine qua non of foreign technology benefits.

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File URL: http://www.merit.unu.edu/publications/wppdf/2006/wp2006-021.pdf
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Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 021.

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Date of creation: 2006
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Handle: RePEc:dgr:unumer:2006021

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Related research
Keywords: absorptive capacity; knowledge; developing countries; systems of innovation;

Find related papers by JEL classification:
C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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  1. Lal, Kaushalesh & Peedoly, Aveeraj Sharma, 2006. "Small Islands, New Technologies and Globalization: A Case of ICT adoption by SMEs in Mauritius," UNU-MERIT Working Paper Series 005, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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This page was last updated on 2009-12-3.


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