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Innovation, growth and economic development: have the conditions for catch-up changed?

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Listed:
  • Jan Fagerberg
  • Bart Verspagen

Abstract

This paper shows that there have been important changes in how the global economic system works. A high growth regime has gradually been substituted by one of low growth. This change appears to be especially pronounced for small economies. Until the end of the 1980s, the scope for technological imitation was a significant factor in generating growth in low-income countries but this did not extend to the 1990s. The results reported in this paper suggest that, during the 1990s, whether low-income countries managed to catch up or fall behind depended mainly on their ability to develop their 'innovation system'.

Suggested Citation

  • Jan Fagerberg & Bart Verspagen, 2007. "Innovation, growth and economic development: have the conditions for catch-up changed?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 13-33.
    • Handle: RePEc:ids:ijtlid:v:1:y:2007:i:1:p:13-33
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    1. Hossein Mombeini & Abdolreza Yazdani-Chamzini & Dalia Streimikiene & Edmundas Kazimieras Zavadskas, 2018. "New fuzzy logic approach for the capability assessment of renewable energy technologies: Case of Iran," Energy & Environment, , vol. 29(4), pages 511-532, June.
    2. Dutrénit, Gabriela & Natera, José Miguel & Puchet Anyul, Martín & Vera-Cruz, Alexandre O., 2019. "Development profiles and accumulation of technological capabilities in Latin America," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 396-412.
    3. Szirmai, Adam, 2012. "Industrialisation as an engine of growth in developing countries, 1950–2005," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 406-420.
    4. Eman Attiah, 2019. "The Role of Manufacturing and Service Sectors in Economic Growth: An Empirical Study of Developing Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 112-127.
    5. Carlo Brambilla & Fabio Lavista, 2024. "Structural change and productivity revolutions: Some hints from the Italian case, 1979–2016," Manchester School, University of Manchester, vol. 92(5), pages 556-577, September.
    6. Bakhrom Abdukadirov, 2022. "The Key Determinants of Industrialization in Uzbekistan," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 8(1), pages 26-49, April.
    7. Szirmai, Adam & Verspagen, Bart, 2015. "Manufacturing and economic growth in developing countries, 1950–2005," Structural Change and Economic Dynamics, Elsevier, vol. 34(C), pages 46-59.
    8. Nabaz T. Khayyat & Jeong-Dong Lee, 2012. "A New Index Measure of Technological Capabilities for Developing Countries," TEMEP Discussion Papers 201291, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2012.
    9. Parker, Lee D., 2014. "Corporate social accountability through action: Contemporary insights from British industrial pioneers," Accounting, Organizations and Society, Elsevier, vol. 39(8), pages 632-659.
    10. Khayyat, Nabaz T. & Lee, Jeong-Dong, 2015. "A measure of technological capabilities for developing countries," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 210-223.
    11. Moritz Böhmecke-Schwafert & Colin Dörries, 2024. "Measuring Innovation in Mauritius’ ICT Sector Using Unsupervised Machine Learning: A Web Mining and Topic Modeling Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 1-34, September.
    12. Gabriela Dutrénit & Morris Teubal, 2011. "Coevolution, Emergence and Economic Development: Some Lessons from the Israeli and Mexican Experience," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 18, Edward Elgar Publishing.
    13. Gabriela Dutrénit & Juan Carlos Moreno-Brid & Martín Puchet & Eduardo Moreno, 2014. "Economic growth, innovation and inequality in Latin America: improvements, setbacks and pending issues post-Washington Consensus," Chapters, in: Gabriela Dutrénit & Judith Sutz (ed.), National Innovation Systems, Social Inclusion and Development, chapter 11, pages 304-348, Edward Elgar Publishing.
    14. Aradhna Aggarwal & Nagesh Kumar, 2012. "Structural Change, Industrialization and Poverty Reduction: The Case of India," Development Papers 1206, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    15. Szirmai, Adam, 2011. "Manufacturing and Economic Development," WIDER Working Paper Series 075, World Institute for Development Economic Research (UNU-WIDER).
    16. Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," MERIT Working Papers 2009-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Berna Sezen Özen & Tüzin Baycan, 2022. "Regional Innovation Performances in Turkey," Sustainability, MDPI, vol. 14(16), pages 1-34, August.
    18. Sha’ban, Mais & Ayadi, Rym & Forouheshfar, Yeganeh & Challita, Sandra & Sandri, Serena, 2024. "Digital and traditional financial inclusion: Trends and drivers," Research in International Business and Finance, Elsevier, vol. 72(PB).
    19. José Afonso Mendes & Sandra T. Silva & Ester G. Silva, 2014. "Portuguese economic growth revisited: a technology-gap explanation," FEP Working Papers 545, Universidade do Porto, Faculdade de Economia do Porto.
    20. Bilkic, Natasa & Gries, Thomas & Naudé, Wim, 2013. "The Radical Innovation Investment Decision Refined," IZA Discussion Papers 7338, Institute of Labor Economics (IZA).
    21. Jung-In Yeon & Jeong-Dong Lee & Chulwoo Baek, 2021. "A tale of two technological capabilities: economic growth revisited from a technological capability transition perspective," The Journal of Technology Transfer, Springer, vol. 46(3), pages 574-605, June.

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