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Capabilities, economic development, sustainability

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  • Jan Fagerberg
  • Martin Srholec

Abstract

The capability concept is commonly used in analyses of firms; however, as this paper shows, it may also be used at the level of nations. Factor analysis is used on a broad set of relevant indicators to derive composite measures of national technological and social capabilities. The data cover 114 countries worldwide on different levels of development for the period 1995–2013. The paper then analyses the relationships between these capability measures and economic development, defined in various ways, and controlling for other relevant factors. The results suggest that improving national technological and social capability is a must for achieving (sustainable) economic development and improving living conditions.

Suggested Citation

  • Jan Fagerberg & Martin Srholec, 2017. "Capabilities, economic development, sustainability," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 905-926.
    • Handle: RePEc:oup:cambje:v:41:y:2017:i:3:p:905-926.
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    File URL: http://hdl.handle.net/10.1093/cje/bew061
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    Cited by:

    1. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
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    3. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2018. "The diffusion and embeddedness of innovative activities in China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 71-106, April.
    4. Janina Ribelienė & Jūratė Macijauskienė & Rasa Tamelienė & Aušrelė Kudrevičienė & Irena Nedzelskienė & Aurelija Blaževičienė, 2022. "Factors Relating to a Safety Culture in the University Perinatal Center: The Nurses’ and Midwives’ Perspective," IJERPH, MDPI, vol. 19(16), pages 1-10, August.
    5. Angelica Sbardella & Emanuele Pugliese & Andrea Zaccaria & Pasquale Scaramozzino, 2018. "The role of complex analysis in modeling economic growth," Papers 1808.10428, arXiv.org.
    6. Carlos Bianchi & Pablo Galaso & Sergio Palomeque, 2023. "Knowledge complexity and brokerage in inter-city networks," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1773-1799, October.
    7. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    8. Lapinskaitė Indrė & Vidžiūnaitė Silvija, 2020. "Assessment of the Sustainable Economic Development Goal 8: Decent Work and Economic Growth in G20 Countries," Economics and Culture, Sciendo, vol. 17(1), pages 116-125, June.
    9. Weko, Silvia & Goldthau, Andreas, 2022. "Bridging the low-carbon technology gap? Assessing energy initiatives for the Global South," Energy Policy, Elsevier, vol. 169(C).
    10. IJACHI IJACHI & Uwuigbe Uwalomwa & STEPHEN OJEKA & OPEYEMI AJETUNMOBI & SIMON ILOGHO, 2020. "The Impact Of Foreign Aid On Sustainable Development In Nigeria: An Environmentally Adjusted Human Development Index Approach," Proceedings of Business and Management Conferences 10112630, International Institute of Social and Economic Sciences.
    11. José Manuel Otero-López & María José Santiago & María Cristina Castro, 2021. "Life Aspirations, Generativity and Compulsive Buying in University Students," IJERPH, MDPI, vol. 18(15), pages 1-15, July.
    12. Obiamaka A. Nwobu & Collins C. Ngwakwe, 2020. "Corporate Responsibility Reporting in Africa: The Effect of Macroeconomic Indicators and Political Regime," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(10), pages 1203-1219, October.
    13. Martijn J. Burger & Kostas Kounetas & Oreste Napolitano & Spyridon Stavropoulos, 2022. "Do innovation and human capital actually narrow the technology gap? Champions and laggards of European regional productive performance," Regional Studies, Taylor & Francis Journals, vol. 56(10), pages 1655-1670, October.
    14. Palacio, Andrés, 2018. "The Social Capability Index and Income Convergence," Lund Papers in Economic History 184, Lund University, Department of Economic History.
    15. Khan, Muhammad Salar, 2022. "Absorptive capacities and economic growth in low- and middle-income economies," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 156-188.
    16. Yunjie Liu & Qiang Jin & Bo Wen & Zhibao Huo & Yuanhang Zhu & Minghai Zhang & Zhili Wang & Aidang Shan, 2020. "The economic and environmental assessment on production stage of quayside crane," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2759-2778, April.
    17. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.
    18. Saad, Suhaila & Mohamed Nor, Norashidah, 2018. "Health Expenditure and Economic Development in Low-and Middle-Income Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 181-189.
    19. Brown, Austin L. & Fleming, Kelly L. & Lipman, Timothy & Fulton, Lew & Saphores, Jean Daniel & Tal, Gil & Murphy, Colin W & Shaheen, Susan & Austin, Bernadette & Garcia Sanchez, Juan Carlos & Martin, , 2020. "Carbon Neutrality Study 1:Driving California’s Transportation Emissions to Zero," Institute of Transportation Studies, Working Paper Series qt5zb1238j, Institute of Transportation Studies, UC Davis.
    20. Fakhimi, MohammadAmin & Miremadi, Iman, 2022. "The impact of technological and social capabilities on innovation performance: a technological catch-up perspective," Technology in Society, Elsevier, vol. 68(C).
    21. Elvis Korku Avenyo & Fiona Tregenna & Erika Kraemer-Mbula, 2021. "Do Productive Capabilities Affect Export Performance? Evidence from African Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 304-329, April.
    22. Areti Gkypali & Kostas Kounetas & Kostas Tsekouras, 2019. "European countries’ competitiveness and productive performance evolution: unraveling the complexity in a heterogeneity context," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 665-695, April.
    23. Angelica Sbardella & Andrea Zaccaria & Luciano Pietronero & Pasquale Scaramozzino, 2021. "Behind the Italian Regional Divide: An Economic Fitness and Complexity Perspective," LEM Papers Series 2021/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    24. Falciola, Justine & Jansen, Marion & Rollo, Valentina, 2020. "Defining firm competitiveness: A multidimensional framework," World Development, Elsevier, vol. 129(C).
    25. Palmaccio, Matteo & Dicuonzo, Grazia & Belyaeva, Zhanna S., 2021. "The internet of things and corporate business models: A systematic literature review," Journal of Business Research, Elsevier, vol. 131(C), pages 610-618.

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