Globalization, National Innovation Systems and Response of Public Policy
This paper attempts to analyse the role of public innovation policies for creating national innovative capabilities in the context of the fast pace of globalization. It is fairly well established both in theory and practice that innovative expenditure will be low if left in the hands of private economic agents of production as they have a tendency to under invest due to public good property of the outcomes of R&D. It is argued that developing economies have in fact neglected essential innovative investment policies compared with the articulated response of the developed countries keeping in view secured competitive advantage. The paper concludes by exploring the role of international institutions and national governments to strengthen the national innovation systems through innovative interventions at national and international levels.
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