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Capabilities, Competitiveness, Nations

Author

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  • Fagerberg , Jan

    () (IKE, University of Aalborg; TIK, University of Oslo; CIRCLE, Lund University)

  • Srholec , Martin

    () (CIRCLE, Lund University; CERGE-EI, Charles University and Economics Institute of the Academy of Sciences of the Czech Republic)

Abstract

This paper discusses the role of capabilities and competitiveness for the economic growth of nations. 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. Capabilities at the national level may be defined broadly as "social capabilities", as done by the economic historian Moses Abramovitz, or more narrowly as "technological capabilities" as suggested by for instance the development scholar Lin-Su Kim. The paper discusses the relationships between these two dimensions of capabilities and examines recent empirical evidence on this matter for a group of 114 countries worldwide on different levels of development. It also considers the relationship between capabilities and competitiveness, and analyses the effects of capability change and other aspects of competitiveness on economic growth on data for the period 1995-2013. The final section presents the conclusions from the study and raises issues for future research.

Suggested Citation

  • Fagerberg , Jan & Srholec , Martin, 2015. "Capabilities, Competitiveness, Nations," Papers in Innovation Studies 2015/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2015_002
    as

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    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201502_Fagerberg_Srholec.pdf
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    References listed on IDEAS

    as
    1. Milanovic, Branko, 2009. "Global inequality recalculated : the effect of new 2005 PPP estimates on global inequality," Policy Research Working Paper Series 5061, The World Bank.
    2. Kim, Linsu, 1980. "Stages of development of industrial technology in a developing country: A model," Research Policy, Elsevier, vol. 9(3), pages 254-277, July.
    3. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
    4. Jan Fagerberg & Martin Srholec, 2009. "Innovation Systems, Technology and Development: Unpacking the Relationships," Chapters,in: Handbook of Innovation Systems and Developing Countries, chapter 4 Edward Elgar Publishing.
    5. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    6. Jan Fagerberg & Martin Srholec, 2005. "Catching up: What are the Critical Factors for success?," Working Papers on Innovation Studies 20050401, Centre for Technology, Innovation and Culture, University of Oslo.
    7. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    8. Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
    9. Castellacci, Fulvio & Natera, Jose Miguel, 2011. "A new panel dataset for cross-country analyses of national systems, growth and development (CANA)," MPRA Paper 28376, University Library of Munich, Germany.
    10. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
    11. Veblen, Thorstein, 1915. "Imperial Germany and The Industrial Revolution," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1915.
    12. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    13. 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.
    14. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 965-990.
    15. Martin Srholec & Bart Verspagen, 2012. "The Voyage of the Beagle into innovation: explorations on heterogeneity, selection, and sectors," Industrial and Corporate Change, Oxford University Press, vol. 21(5), pages 1221-1253, October.
    16. Fagerberg, Jan & Srholec, Martin, 2008. "National innovation systems, capabilities and economic development," Research Policy, Elsevier, vol. 37(9), pages 1417-1435, October.
    17. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, Elsevier.
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    More about this item

    Keywords

    Technological capabilities; social capabilities; competitiveness; catching-up; development;

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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