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Imitation or Innovation? The impacts of patents and R&D expenditures on the high-tech exports of Newly Industrialised Countries

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  • R Ackrill
  • R Çetin

Abstract

Exports have long been shown as being important in driving economic growth and development. The development and export of high-tech products has been shown to play a particularly significant role in this. But how do lesser-developed countries develop such products and thus progress to higher levels of income and economic development – by imitation or innovation? This is a dynamic process that warrants being revisited regularly, given also the mixed empirical results in the extant literature. In this study we focus on the high-tech exports of a panel of eight newly industrialised countries (NICs) over 1996–2016. We make two important contributions to the literature: we focus on the country-level, complementing the considerable literature analysing firm-level effects; and we analyse jointly the relationships between patents, research and development (R&D) expenditure and the export of high-tech goods. Employing panel cointegration and panel Granger causality testing procedures, we reject the imitation hypothesis: NICs are engaging in product innovation with R&D activities leading to patents that provide long-run export benefits. Our results also support the self-selection hypothesis over learning-by-exporting in the dynamics of trade- led economic development. NICs’ research and innovation activity suggests a growing dynamic benefit in terms of export-led-growth via a focus on high-tech exports.

Suggested Citation

  • R Ackrill & R Çetin, 2025. "Imitation or Innovation? The impacts of patents and R&D expenditures on the high-tech exports of Newly Industrialised Countries," Economic Issues Journal Articles, Economic Issues, vol. 30(1), pages 45-65, March.
    • Handle: RePEc:eis:articl:125ackrill
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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