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A New Index Measure of Technological Capabilities for Developing Countries

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  • Nabaz T. Khayyat

    ()

    (TEMEP, College of Engineering, Seoul National University)

  • Jeong-Dong Lee

    ()

    (TEMEP, College of Engineering, Seoul National University)

Abstract

This study is conducted to develop a new measurement tool to analyze the extent of innovation by developing nations. The role of science and technology in enhancing the rate of innovation is also investigated. The existing methods for measuring innovation such as Technology Index (WEF), Technology Achievement Index (UNDP), Industrial Development Scorecard (UNIDO), ArCo (Archibugi and Coco) and Science and Technology Index (RAND Corporation) are compared and based on their limitations a new tool with higher advantage is developed. The new index labeled as Technology Creation Index (TC-index) is decomposed into six distinct components. The index is estimated for 61 developing countries from Asia, North and South America and Africa. The countries are classified into three groups based on their extent of innovation derived from principal component analysis to assess the country group heterogeneity. The results suggest that in construction of the TC-index patents granted, human development index, local availability of specialized training and resources, foreign direct investment inflows, number of citations per science and education articles, secondary gross enrollment rate and science and education journals are identified as the main contributors to the higher rate of innovation in developing nations.

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Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201291.

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Length: 31 pages
Date of creation: Jun 2012
Date of revision: Jun 2012
Handle: RePEc:snv:dp2009:201291
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Keywords: Innovation measurement; technological infrastructure; diffusion of innovations; human skills; economic and social indicators.;

Find related papers by JEL classification:

  • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
  • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
  • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
  • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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  17. Michiko Iizuka, 2009. "Standards as a platform for innovation and learning in the global economy: a case study of the Chilean salmon farming industry," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(4), pages 274-293.
  18. Meghnad Desai & Sakiko Fukuda-Parr & Claes Johansson & Fransisco Sagasti, 2002. "Measuring the Technology Achievement of Nations and the Capacity to Participate in the Network Age," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 95-122.
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