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National innovation systems, capabilities and economic development

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  • Fagerberg, Jan
  • Srholec, Martin

Abstract

This paper focuses on the role of capabilities in economic development. In recent years, the quality and availability of data on different aspects of development have improved, and this provides new opportunities for investigating the reasons behind the large differences in economic development. Using factor analysis on data for 25 indicators and 115 countries between 1992 and 2004, we identify four different types of "capabilities": the development of the "innovation system", the quality of "governance", the character of the "political system" and the degree of "openness" of the economy. Innovation systems and governance are shown to be of particular importance for economic development.

Suggested Citation

  • Fagerberg, Jan & Srholec, Martin, 2008. "National innovation systems, capabilities and economic development," Research Policy, Elsevier, vol. 37(9), pages 1417-1435, October.
  • Handle: RePEc:eee:respol:v:37:y:2008:i:9:p:1417-1435
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    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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