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National Innovation System in the Era of Liberalization: Implications for Science and Technology Policy for Developing Economies

Author

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  • Singh, Lakhwinder
  • Singh, Baldev

Abstract

The national system of innovations in the recent phase of globalization has undergone dramatic structural transformation. Innovations entails organizational as well as changes in the rules of the game. The history of economic development of the developing and newly industrializing economies shows that national systems of innovation have evolved keeping in view the most pressing requirements of the national economic development. The knowledge generation and transmission are the two essential characteristics of national innovation system that connects the users and producers of knowledge and also allows institutional arrangements to functions as a feedback system. The institutional arrangements are being altered substantially to allow capital to move freely across national borders on the one side and strict trade related intellectual property rights on the other. How these arrangements have affected the national system of innovation both in the developed and developing countries during the recent liberalisation phase of economic development? In this paper an attempt has been made to provide some plausible answers to this question. Input and output indicators have been used with a view to unravel the dramatic structural changes occurring both in the economic and innovation structure of the global economy. The internationalisation of R&D expenditure and its implications for revealed comparative advantage have been examined in order to understand the direction of change during the era of liberalisation. The suitable changes in the science and technology policy have been suggested to strengthen the national system of innovation for generating unique competitive advantage in the developing countries.

Suggested Citation

  • Singh, Lakhwinder & Singh, Baldev, 2009. "National Innovation System in the Era of Liberalization: Implications for Science and Technology Policy for Developing Economies," MPRA Paper 15432, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:15432
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    File URL: https://mpra.ub.uni-muenchen.de/15432/1/MPRA_paper_15432.pdf
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    References listed on IDEAS

    as
    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. Gene M. Grossman & Edwin L.-C. Lai, 2004. "International Protection of Intellectual Property," American Economic Review, American Economic Association, vol. 94(5), pages 1635-1653, December.
    3. Charles Edquist & Leif Hommen, 2008. "Comparing National Systems of Innovation in Asia and Europe: Theory and Comparative Framework," Chapters,in: Small Country Innovation Systems, chapter 1 Edward Elgar Publishing.
    4. Soete, Luc, 2006. "A Knowledge Economy Paradigm and its Consequences," MERIT Working Papers 001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Mytelka, Lynn K. & Smith, Keith, 2002. "Policy learning and innovation theory: an interactive and co-evolving process," Research Policy, Elsevier, vol. 31(8-9), pages 1467-1479, December.
    6. World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855, April.
    7. World Bank, 2006. "World Development Indicators 2006," World Bank Publications, The World Bank, number 8151, April.
    8. 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.
    9. Roediger-Schluga, Thomas & Barber, Michael J., 2006. "The structure of R&D collaboration networks in the European Framework Programmes," MERIT Working Papers 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Florence Jaumotte & Nigel Pain, 2005. "An Overview of Public Policies to Support Innovation," OECD Economics Department Working Papers 456, OECD Publishing.
    11. repec:wbk:wbpubs:28241 is not listed on IDEAS
    12. Shahid Yusuf, 2003. "Innovative East Asia : The Future of Growth," World Bank Publications, The World Bank, number 15158, April.
    13. Amable, Bruno, 2000. "International specialisation and growth," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 413-431, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    National system of innovation; structural transformation; input and output measures of innovations; revealed competitive advantage; public policy; internationalisation of R&D; intellectual property rights;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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