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Innovation, Absorptive Capacity and Growth Heterogeneity: Development Paths in Latin America 1970–2010

Author

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  • Fulvio Castellacci

    (TIK Centre, University of Oslo, Norway)

  • Jose Miguel Natera

    (Universidad Metropolitana, Mexico)

Abstract

The paper carries out an analysis of long-run development paths in Latin America in the period 1970-2010. We focus on three main dimensions – openness, industrial structure and innovation – and analyze how changes in these factors, and the specific combination of them adopted by each country, have affected its income per capita growth. We apply Johansen cointegration approach to time series data for 18 Latin American countries. The analysis leads to two main results. First, we show that Latin American countries have followed different growth trajectories depending on the combination of policies they have adopted to catch up. Secondly, we find a clear correspondence between policy strategies, on the one hand, and growth performance, on the other. Countries that have managed to combine imitation and innovation policy have experienced a higher rate of growth than those economies that have only made efforts to improve their imitation capability.

Suggested Citation

  • Fulvio Castellacci & Jose Miguel Natera, 2015. "Innovation, Absorptive Capacity and Growth Heterogeneity: Development Paths in Latin America 1970–2010," Working Papers on Innovation Studies 20150820, Centre for Technology, Innovation and Culture, University of Oslo.
  • Handle: RePEc:tik:inowpp:20150820
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    Cited by:

    1. repec:eee:tefoso:v:129:y:2018:i:c:p:232-241 is not listed on IDEAS
    2. Adel Ben Youssef & Sabri Boubaker & Anis Omri, 2017. "Entrepreneurship and Sustainability Goals: The Need for Innovative and Institutional Solutions," Post-Print halshs-01653946, HAL.
    3. Ben Youssef, Adel & Boubaker, Sabri & Omri, Anis, 2018. "Entrepreneurship and sustainability: The need for innovative and institutional solutions," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 232-241.
    4. repec:eee:tefoso:v:127:y:2018:i:c:p:258-270 is not listed on IDEAS
    5. Santos-Arteaga, Francisco J. & Di Caprio, Debora & Tavana, Madjid & O’Connor, Aidan, 2017. "Innovation dynamics and labor force restructuring with asymmetrically developed national innovation systems," International Business Review, Elsevier, vol. 26(1), pages 36-56.

    More about this item

    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
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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