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Absorptive Capacity and Innovative Capability: An Approach to Estimation

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  • Polterovich, Victor
  • Tonis, Alexander

Abstract

The concepts of absorptive capacity and innovative capability have been introduced to describe abilities of a country to imitate and, accordingly, to create more advanced technologies. In this paper we suggest new indicators of these two abilities. To calculate them, we develop an endogenous growth model and an estimation procedure that combines both calibration and econometric approaches. The choice of parameters is based on WDI, ICRG and Barro–Lee statistical data for the period of 1981-2005. As a result, the model generates trajectories of 63 countries and, for most of them, gives qualitatively correct pictures of their evolution dependently on their initial states as well as on their absorptive capacity and innovative capability indicators. In particular, club convergence is demonstrated. The calculations affirm our hypotheses about shapes of absorptive capacity and innovative capability dependence on the relative productivity level, human capital, institutional quality and some other factors.

Suggested Citation

  • Polterovich, Victor & Tonis, Alexander, 2014. "Absorptive Capacity and Innovative Capability: An Approach to Estimation," MPRA Paper 56855, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56855
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    References listed on IDEAS

    as
    1. Polterovich, Victor & Tonis, Alexander, 2003. "Innovation and Imitation at Various Stages of Development," MPRA Paper 20065, University Library of Munich, Germany.
    2. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-827, August.
    3. Howitt, Peter & Mayer-Foulkes, David, 2005. "R&D, Implementation, and Stagnation: A Schumpeterian Theory of Convergence Clubs," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 147-177, February.
    4. Deidda, Luca & Fattouh, Bassam, 2008. "Banks, financial markets and growth," Journal of Financial Intermediation, Elsevier, vol. 17(1), pages 6-36, January.
    5. Nehru, Vikram & Swanson, Eric & Dubey, Ashutosh, 1993. "A new database on human capital stock : sources, methodology and results," Policy Research Working Paper Series 1124, The World Bank.
    6. Archibugi, Daniele & Coco, Alberto, 2005. "Measuring technological capabilities at the country level: A survey and a menu for choice," Research Policy, Elsevier, vol. 34(2), pages 175-194, March.
    7. Chakraborty, Shankha & Ray, Tridip, 2006. "Bank-based versus market-based financial systems: A growth-theoretic analysis," Journal of Monetary Economics, Elsevier, vol. 53(2), pages 329-350, March.
    8. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    9. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    10. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    11. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
    12. V. Polterovich & V. Popov., 2006. "The Evolutionary Theory of Economic Policy. Part II. The Necessity of Timely Switching," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
    13. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
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    More about this item

    Keywords

    imitation; innovation; catching-up development; foreign direct investment; human capital; equilibrium; evolution of countries distribution;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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