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Market-oriented reforms, globalization and the recent transformation of Latin American innovation systems


  • Jorge Katz


Market-oriented structural reforms were implemented in Latin America under the expectation that the transition from an "inward-oriented", "state-led" growth strategy to one which was more "market-led" and "outward-oriented" was going to be rewarded by a sustainable long-term improvement in the region's rate of economic expansion and productivity growth. The competitive discipline imposed by a more open and deregulated economic regime was expected to induce faster innovation and technological modernization efforts from firms and individuals and, thereafter, a gradual but steady "convergence" to world-wide income and productivity standards. A global look at the region's performance throughout the 1980s and 1990s tells us that such a priori expectation was far from realistic. The paper examines why this has been so.

Suggested Citation

  • Jorge Katz, 2004. "Market-oriented reforms, globalization and the recent transformation of Latin American innovation systems," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 375-387.
  • Handle: RePEc:taf:oxdevs:v:32:y:2004:i:3:p:375-387
    DOI: 10.1080/1360081042000260584

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    Cited by:

    1. Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
    2. José Gabriel Palma, 2016. "Do nations just get the inequality they deserve? The ‘Palma Ratio’ re-examined," Cambridge Working Papers in Economics 1627, Faculty of Economics, University of Cambridge.
    3. repec:spr:manint:v:49:y:2009:i:4:d:10.1007_s11575-009-0005-8 is not listed on IDEAS

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