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Innovation Theories: Relevance and Implications for Developing Country Innovation

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  • Andréanne Léger
  • Sushmita Swaminathan

Abstract

Innovation is at the basis of economic development and as such, it is instrumental for developing countries. We review the literature on innovation from the perspectives of four select branches of economics to build a conceptual framework of innovation applicable to developing countries. The conceptual framework includes insights from the surveyed literature and identifies areas of further research. Finally, we conclude with policy recommendations for innovation policies in developing countries highlighting the fact that intellectual property protection is not likely to be at the basis of innovation in these countries.

Suggested Citation

  • Andréanne Léger & Sushmita Swaminathan, 2007. "Innovation Theories: Relevance and Implications for Developing Country Innovation," Discussion Papers of DIW Berlin 743, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp743
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.75207.de/dp743.pdf
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    References listed on IDEAS

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    1. Alfranca, Oscar & Huffman, Wallace E, 2003. "Aggregate Private R&D Investments in Agriculture: The Role of Incentives, Public Policies, and Institutions," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 1-21, October.
    2. Boldrin, Michele & Levine, David K., 2008. "Perfectly competitive innovation," Journal of Monetary Economics, Elsevier, vol. 55(3), pages 435-453, April.
    3. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    5. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
    6. Laura Bottazzi & Giovanni Peri, 2007. "The International Dynamics of R&D and Innovation in the Long Run and in The Short Run," Economic Journal, Royal Economic Society, vol. 117(518), pages 486-511, March.
    7. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    8. Huffman, Wallace & Alfranca, O., 2003. "Private R&D Investments in Agriculture: The Role of Incentives, Public Policies, and Institutions," Staff General Research Papers Archive 10427, Iowa State University, Department of Economics.
    9. Erik Brynjolfsson & Lorin M. Hitt, 2003. "Computing Productivity: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 793-808, November.
    10. Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 176-193, May.
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    Cited by:

    1. Rezart Prifti & Genc Alimehmeti, 2017. "Market orientation, innovation, and firm performance—an analysis of Albanian firms," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-19, December.
    2. Antonescu, Daniela, 2015. "Theoretical and Practical Approaches of Innovation at Regional Level," MPRA Paper 68178, University Library of Munich, Germany.
    3. J.J. Voeten & W.A. Naud�, 2014. "Regulating the negative externalities of enterprise cluster innovations: lessons from Vietnam," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 203-219, October.
    4. Mohsin Bashir & Muhammad Waseem Bari & Syed Hassan Raza, 2018. "Dimensions of Social Capital and Innovation Capabilities of Firms The Performance of Information Technology as a Mediator," Global Social Sciences Review, Humanity Only, vol. 3(3), pages 175-192, September.
    5. Zavadska Diana, 2017. "Evaluation of innovative development of Ukrainian economy and determination of the mechanisms of its support," Technology audit and production reserves, 2(34) 2017, Socionet;Technology audit and production reserves, vol. 2(5(34)), pages 36-44.

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    More about this item

    Keywords

    Innovation; Development; Absorptive Capacity;
    All these keywords.

    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
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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