IDEAS home Printed from https://ideas.repec.org/p/zbw/fziddp/652013.html
   My bibliography  Save this paper

Innovation, economic diversification and human development

Author

Listed:
  • Hartmann, Dominik
  • Pyka, Andreas

Abstract

In this paper we bridge a gap between innovation economics and the human development approach by analyzing positive and negative effects of different types of economic diversification on social welfare. Economic variety is a driver and outcome of economic development. However, diversification leads to ambiguous effects on the well-being of human agents: on the one hand, increasing variety augments the freedom of human agents to choose. On the other hand, it can overburden their capabilities to make economic decisions and can deteriorate their well-being. It becomes clear that human development policy has to go hand in hand with an industrial policy that promotes qualitative economic diversification. Depending on its dynamics, this diversification can be achieved via related and unrelated variety. We can expect a better design of development policies from a better understanding of the co-evolutionary development of variety, freedom of choice and well-being.

Suggested Citation

  • Hartmann, Dominik & Pyka, Andreas, 2013. "Innovation, economic diversification and human development," FZID Discussion Papers 65-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    • Handle: RePEc:zbw:fziddp:652013
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/69738/1/736748660.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. -, 2008. "Structural change and productivity growth 20 years later: old problems, new opportunities. Summary," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 13191 edited by Eclac, May.
    2. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1-1.
    3. J. Barkley Rosser Jr. (ed.), 2009. "Handbook of Research on Complexity," Books, Edward Elgar Publishing, number 3625.
    4. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    5. Smith, Adam, 1977. "An Inquiry into the Nature and Causes of the Wealth of Nations," University of Chicago Press Economics Books, University of Chicago Press, number 9780226763743 edited by Cannan, Edwin, January.
    6. Hartmann, Dominik & Pyka, Andreas & Hanusch, Horst, 2010. "Applying Comprehensive Neo-Schumpeterian Economics to Latin American Economies," Structural Change and Economic Dynamics, Elsevier, vol. 21(1), pages 70-83, March.
    7. Sabina Alkire, 2010. "Human Development: Definitions, Critiques, and Related Concepts," OPHI Working Papers 36, Queen Elizabeth House, University of Oxford.
    8. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    9. Klinger, Bailey & Lederman, Daniel, 2006. "Diversification, innovation, and imitation inside the Global Technological Frontier," Policy Research Working Paper Series 3872, The World Bank.
    10. Andy Stirling, 2007. "A General Framework for Analysing Diversity in Science, Technology and Society," SPRU Working Paper Series 156, SPRU - Science Policy Research Unit, University of Sussex Business School.
    11. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    12. Gries, Thomas & Naudé, Wim, 2011. "Entrepreneurship and human development: A capability approach," Journal of Public Economics, Elsevier, vol. 95(3), pages 216-224.
    13. Gries, Thomas & Naudé, Wim, 2011. "Entrepreneurship and human development: A capability approach," Journal of Public Economics, Elsevier, vol. 95(3), pages 216-224.
    14. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
    15. -, 2008. "Structural change and productivity growth, 20 years later: old problems, new opportunities," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2890 edited by Eclac, May.
    16. Antonio Doria, Francisco, 2011. "J.B. Rosser Jr. , Handbook of Research on Complexity, Edward Elgar, Cheltenham, UK--Northampton, MA, USA (2009) 436 + viii pp., index, ISBN 978 1 84542 089 5 (cased)," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 196-204, April.
    17. César A. Hidalgo, 2010. "Graphical Statistical Methods for the Representation of the Human Development Index and its Components," Human Development Research Papers (2009 to present) HDRP-2010-39, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    18. Srinivas, Smita & Sutz, Judith, 2008. "Developing countries and innovation: Searching for a new analytical approach," Technology in Society, Elsevier, vol. 30(2), pages 129-140.
    19. Sen, Amartya, 1998. "The Possibility of Social Choice," Nobel Prize in Economics documents 1998-2, Nobel Prize Committee.
    20. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    21. -, 2008. "Structural change and productivity growth, 20 years later: old problems, new opportunities," Documentos de posición del período de sesiones de la Comisión 2890, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    22. Bengt-Åke Lundvall & K. J. Joseph & Cristina Chaminade & Jan Vang (ed.), 2009. "Handbook of Innovation Systems and Developing Countries," Books, Edward Elgar Publishing, number 12943.
    23. Horst Hanusch & Andreas Pyka (ed.), 2007. "Elgar Companion to Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 2973.
    24. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    25. Pier P. Saviotti, 1996. "Technological Evolution, Variety and the Economy," Books, Edward Elgar Publishing, number 727.
    26. Carlota Perez, 2002. "Technological Revolutions and Financial Capital," Books, Edward Elgar Publishing, number 2640.
    27. Todtling, Franz & Trippl, Michaela, 2005. "One size fits all?: Towards a differentiated regional innovation policy approach," Research Policy, Elsevier, vol. 34(8), pages 1203-1219, October.
    28. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
    29. Pier Saviotti & Koen Frenken, 2008. "Export variety and the economic performance of countries," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 201-218, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Buhari Doğan & Oana M. Driha & Daniel Balsalobre Lorente & Umer Shahzad, 2021. "The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 1-12, January.
    2. Athanasios Lapatinas, 2016. "Economic complexity and human development: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1441-1452.
    3. Muhammad Ali & Uwe Cantner, 2020. "Economic diversification and human development in Europe," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 211-235, June.
    4. Indraneel Bhowmik & P. K. Viswanathan, 2021. "Development of the Rubber Sector in North East India: A Case of Missing Innovation and Linkages," South Asian Survey, , vol. 28(2), pages 294-317, September.
    5. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, vol. 12(5), pages 1-26, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athanasios Lapatinas, 2016. "Economic complexity and human development: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1441-1452.
    2. Muhammad Ali & Uwe Cantner, 2020. "Economic diversification and human development in Europe," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 211-235, June.
    3. Pier-Paolo Saviotti & Andreas Pyka¤ & Bogang Jun, 2020. "Diversification, structural change, and economic development," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1301-1335, November.
    4. Cristiano Antonelli & Francesco Crespi & Christian A. Mongeau Ospina & Giuseppe Scellato, 2017. "Knowledge composition, Jacobs externalities and innovation performance in European regions," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1708-1720, November.
    5. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.
    6. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    7. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    8. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    9. Pier Paolo Saviotti & Andreas Pyka, 2009. "Product variety, competition and economic growth," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 71-95, Springer.
    10. Saviotti, Pier Paolo & Pyka, Andreas, 2013. "From necessities to imaginary worlds: Structural change, product quality and economic development," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1499-1512.
    11. Carolina Castaldi & Koen Frenken & Bart Los, 2015. "Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of US State-Level Patenting," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 767-781, May.
    12. Viktor Stojkoski & Zoran Utkovski & Ljupco Kocarev, 2016. "The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-29, August.
    13. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    14. Tom Broekel & Lars Mewes, 2017. "Analyzing the impact of R&D policy on regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1726, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    15. Wenni Lei & Yuwei Luo, 2022. "Institutions Rule in Export Diversity," Sustainability, MDPI, vol. 14(18), pages 1-14, September.
    16. Niccolò Innocenti & Francesco Capone & Luciana Lazzeretti & Sergio Petralia, 2022. "The role of inventors’ networks and variety for breakthrough inventions," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 37-57, February.
    17. Hausmann, Ricardo & Hidalgo, Cesar A., 2010. "Country Diversification, Product Ubiquity, and Economic Divergence," Working Paper Series rwp10-045, Harvard University, John F. Kennedy School of Government.
    18. Asier Minondo, 2011. "Does comparative advantage explain countries’ diversification level?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 507-526, September.
    19. Pier Saviotti & Koen Frenken, 2008. "Export variety and the economic performance of countries," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 201-218, April.
    20. Jung-In Yeon & Sojung Hwang & Bogang Jun, 2022. "The spillover effect of neighboring port on regional industrial diversification and regional economic resilience," Papers 2204.00189, arXiv.org.

    More about this item

    Keywords

    innovation; economic diversification; human development;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:fziddp:652013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fihohde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.