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Globalization, National Innovation Systems and Response of Public Policy

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  • Lakhwinder Singh

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Abstract

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.

Suggested Citation

  • Lakhwinder Singh, 2007. "Globalization, National Innovation Systems and Response of Public Policy," Working Papers id:809, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:809
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Narula, Rajneesh & Sadowski, Bert M., 1998. "Technological catch-up and strategic technology partnering in developing countries," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Fagerberg, Jan & Verspagen, Bart, 2002. "Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation," Research Policy, Elsevier, vol. 31(8-9), pages 1291-1304, December.
    4. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
    5. David L. Carr & James R. Markusen & Keith E. Maskus, 2001. "Estimating the Knowledge-Capital Model of the Multinational Enterprise," American Economic Review, American Economic Association, vol. 91(3), pages 693-708, June.
    6. Aitken, Brian & Harrison, Ann & DEC, 1994. "Do domestic firms benefit from foreign direct investment? Evidence from panel data," Policy Research Working Paper Series 1248, The World Bank.
    7. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    8. Xu, Bin, 2000. "Multinational enterprises, technology diffusion, and host country productivity growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 477-493, August.
    9. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    10. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    11. Guifang Yang & Maskus, Keith E., 2003. "Intellectual property rights, licensing, and innovation," Policy Research Working Paper Series 2973, The World Bank.
    12. Andreas Savvides & Marios Zachariadis, 2005. "International Technology Diffusion and the Growth of TFP in the Manufacturing Sector of Developing Economies," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 482-501, November.
    13. Shahid Yusuf, 2003. "Innovative East Asia : The Future of Growth," World Bank Publications, The World Bank, number 15158.
    14. Evenson, R.E. & Singh, L., 1997. "Economic Growth, International Technological Spillovers and Public Policy: Theory and Empirical Evidence from Asia," Papers 777, Yale - Economic Growth Center.
    15. Mani, Sunil, 1999. "Public Innovation Policies and Developing Countries In a Phase of Economic Liberalisation," UNU-INTECH Discussion Paper Series 02, United Nations University - INTECH.
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    Cited by:

    1. Singh, Lakhwinder, 2006. "Innovations, High-Tech Trade and Industrial Development: Theory, Evidence and Policy," WIDER Working Paper Series 027, World Institute for Development Economic Research (UNU-WIDER).
    2. Herstatt, Cornelius & Tiwari, Rajnish & Buse, Stephan, 2008. "India's National Innovation System: Key elements and corporate perspectives," Working Papers 51, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

    More about this item

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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