In this paper, we observe that developed countries are generally equipped with innovation capabilities and produce major chunk of the world-s knowledge and technology. The contribution of developing countries, on the other hand, is insignificant, and most of them far behind the global technological front. More specifically, we empirically observe that the developing world neither contributes substantially to the world-s scientific publications nor to the R&D activities. They also have lesser “absorptive capacity" and “technological capability", and their “innovation systems" are plagued with many problems. Finally, we argue that these countries can break the shackles and improve their innovation capabilities by pursuing genuine innovation policies on long-term basis with honesty and commitment.
[1] O. C. Freeman, Technology and economic performance: lessons from
Japan. London: Pinter, 1987.
[2] B. Å. Lundvall, Ed., National systems of innovation: toward a theory of
innovation and interactive learning. London: Pinter, 1992.
[3] J. Fagerberg, M. Srholec, and B. Verspagen, "Innovation and economic
development," in Handbook of the Economics of Innovation, B. H. Hall
and N. Rosenberg, Eds. North-Holland, 2010, pp. 833-872.
[4] W. M. Cohen and D. A. Levinthal, "Innovation and learning: the two
faces of R & D," The Economic Journal, vol. 99, no. 397, pp. 569-596,
1989.
[5] W. M. Cohen and D. A. Levinthal, "Absorptive capacity: a new
perspective on learning and innovation," Administrative Science
Quarterly, vol. 35, no. 1, pp. 128-152, 1990.
[6] M. Abramovitz, "Catching up, forging ahead, and falling behind,"
Journal of Economic History, vol. 46, no. 2, pp. 385-406, 1986.
[7] L. Kim, "Stages of development of industrial technology in a developing
country: a model," Research Policy, vol. 9, no. 3, pp. 254-277, 1980.
[8] C. Edquist, Ed., Systems of innovation: technologies, institutions, and
organizations. London: Pinter, 1997.
[9] D. Crane, "Technological innovation in developing countries: a review
of the literature," Research Policy, vol. 6, no. 4, pp. 374-395, 1977.
[10] J. E. Aubert, "Promoting innovation in developing countries: a
conceptual framework," World Bank Institute, 2004.
[11] E. Von Hippel, "Lead users: a source of novel product concepts,"
Management Science, vol. 32, no. 7, pp. 791-805, 1986.
[12] C. Lettl, "User involvement competence for radical innovation," Journal
of Engineering and Technology Management, vol. 24, no. 1, pp. 53-75,
2007.
[13] J. Gaillard, "Measuring research and development in developing
countries: main characteristics and implications for the Frascati manual,"
Science Technology & Society, vol. 15, no. 1, pp. 77-111, 2010.
[14] A. Schubert and A. Telcs, "Publication potentialÔÇöan indicator of
scientific strength for cross-national comparisons," Scientometrics, vol.
9, no. 5, pp. 231-238, 1986.
[15] A. Galvez, M. Maqueda, M. Martinez-Bueno, and E. Valdivia,
"Scientific Publication Trends and the Developing World: what can the
volume and authorship of scientific articles tell us about scientific
progress in various regions?," American scientist, vol. 88, no. 6, pp.
526-533, 2000.
[16] NSF, "Science and engineering indicators 2012," National Center for
Science and Engineering Statistics, and the Patent BoardTM, Special
Tabulation (2011) from Thomson Reuters, SCI and SSCI, 2012.
[17] T. van Leeuwen, "The application of bibliometric analyses in the
evaluation of social science research. Who benefits from it, and why it is
still feasible," Scientometrics, vol. 66, no. 1, pp. 133-154, 2006.
[18] United Nations, "World population prospects: the 2010 revision, CDROM
Edition," Department of Economic and Social Affairs, Population
Division, 2011.
[19] B. Verspagen, "R&D and productivity: a broad cross-section crosscountry
look," Journal of Productivity Analysis, vol. 6, no. 2, pp. 117-
135, 1995.
[20] Z. Griliches, R&D and productivity: the econometric evidence. Chicago:
University of Chicago press, 1998.
[21] R. E. J. Lucas, "On the mechanics of economic development," Journal
of Monetary Economics, vol. 22, no. 1, pp. 3-42, 1988.
[22] P. M. Romer, "Increasing returns and long-run growth," The Journal of
Political Economy, vol. 94, no. 5, pp. 1002-1037, 1986.
[23] P. M. Romer, "Endogenous technological change," The Journal of
Political Economy, vol. 98, no. 5 (Part 2), pp. S71-S102, 1990.
[24] C. J. Dahlman, B. Ross-Larson, and L. E. Westphal, "Managing
technological development: lessons from the newly industrializing
countries," World Development, vol. 15, no. 6, pp. 759-775, 1987.
[25] P. Reddy, "R&D-related FDI in developing countries: implications for
host countries," United Nations Conference on Trade and Development,
Geneva, 2005.
[26] M. Nieto and P. Quevedo, "Absorptive capacity, technological
opportunity, knowledge spillovers, and innovative effort,"
Technovation, vol. 25, no. 10, pp. 1141-1157, 2005.
[27] K. R. Fabrizio, "Absorptive capacity and the search for innovation,"
Research Policy, vol. 38, no. 2, pp. 255-267, 2009.
[28] R. Veugelers, "Internal R & D expenditures and external technology
sourcing," Research Policy, vol. 26, no. 3, pp. 303-315, 1997.
[29] W. Tsai, "Knowledge transfer in intraorganizational networks: effects of
network position and absorptive capacity on business unit innovation
and performance," The Academy of Management journal, vol. 44, no. 5,
pp. 996-1004, 2001.
[30] S. Girma and H. Görg, "Foreign direct investment, spillovers and
absorptive capacity: evidence from quantile regressions," Deutsche
Bundesbank Discussion Paper No. 13/2005, 2005.
[31] L. Kim, Imitation to innovation: the dynamics of Korea-s technological
learning. Massachusetts: Harvard Business School Press, 1997.
[32] D. Archibugi and A. Coco, "A new indicator of technological
capabilities for developed and developing countries (ArCo)," World
Development, vol. 32, no. 4, pp. 629-654, 2004.
[33] C. Edquist, "System of innovation: perspectives and challenges," in The
Oxford Handbook of Innovation, J. Fagerberg, D. C. Mowery, and R. R.
Nelson, Eds. Oxford University Press, 2004, pp. 181-208.
[34] B. Carlsson, S. Jacobsson, M. Holmén, and A. Rickne, "Innovation
systems: analytical and methodological issues," Research Policy, vol.
31, no. 2, pp. 233-245, 2002.
[35] C. J. Dahlman, "Improving technology, skills and innovation in South
Asia," in South Asia: Growth and Regional Integration, A. Ahmed and
E. Ghani, Eds. Macmillan India Ltd., 2007.
[36] P. Intarakumnerd, P. Chairatana, and T. Tangchitpiboon, "National
innovation system in less successful developing countries: the case of
Thailand," Research Policy, vol. 31, no. 8-9, pp. 1445-1457, 2002.
[37] L. Alcorta and W. Peres, "Innovation systems and technological
specialization in Latin America and the Caribbean," Research Policy,
vol. 26, no. 7-8, pp. 857-881, 1998.
[1] O. C. Freeman, Technology and economic performance: lessons from
Japan. London: Pinter, 1987.
[2] B. Å. Lundvall, Ed., National systems of innovation: toward a theory of
innovation and interactive learning. London: Pinter, 1992.
[3] J. Fagerberg, M. Srholec, and B. Verspagen, "Innovation and economic
development," in Handbook of the Economics of Innovation, B. H. Hall
and N. Rosenberg, Eds. North-Holland, 2010, pp. 833-872.
[4] W. M. Cohen and D. A. Levinthal, "Innovation and learning: the two
faces of R & D," The Economic Journal, vol. 99, no. 397, pp. 569-596,
1989.
[5] W. M. Cohen and D. A. Levinthal, "Absorptive capacity: a new
perspective on learning and innovation," Administrative Science
Quarterly, vol. 35, no. 1, pp. 128-152, 1990.
[6] M. Abramovitz, "Catching up, forging ahead, and falling behind,"
Journal of Economic History, vol. 46, no. 2, pp. 385-406, 1986.
[7] L. Kim, "Stages of development of industrial technology in a developing
country: a model," Research Policy, vol. 9, no. 3, pp. 254-277, 1980.
[8] C. Edquist, Ed., Systems of innovation: technologies, institutions, and
organizations. London: Pinter, 1997.
[9] D. Crane, "Technological innovation in developing countries: a review
of the literature," Research Policy, vol. 6, no. 4, pp. 374-395, 1977.
[10] J. E. Aubert, "Promoting innovation in developing countries: a
conceptual framework," World Bank Institute, 2004.
[11] E. Von Hippel, "Lead users: a source of novel product concepts,"
Management Science, vol. 32, no. 7, pp. 791-805, 1986.
[12] C. Lettl, "User involvement competence for radical innovation," Journal
of Engineering and Technology Management, vol. 24, no. 1, pp. 53-75,
2007.
[13] J. Gaillard, "Measuring research and development in developing
countries: main characteristics and implications for the Frascati manual,"
Science Technology & Society, vol. 15, no. 1, pp. 77-111, 2010.
[14] A. Schubert and A. Telcs, "Publication potentialÔÇöan indicator of
scientific strength for cross-national comparisons," Scientometrics, vol.
9, no. 5, pp. 231-238, 1986.
[15] A. Galvez, M. Maqueda, M. Martinez-Bueno, and E. Valdivia,
"Scientific Publication Trends and the Developing World: what can the
volume and authorship of scientific articles tell us about scientific
progress in various regions?," American scientist, vol. 88, no. 6, pp.
526-533, 2000.
[16] NSF, "Science and engineering indicators 2012," National Center for
Science and Engineering Statistics, and the Patent BoardTM, Special
Tabulation (2011) from Thomson Reuters, SCI and SSCI, 2012.
[17] T. van Leeuwen, "The application of bibliometric analyses in the
evaluation of social science research. Who benefits from it, and why it is
still feasible," Scientometrics, vol. 66, no. 1, pp. 133-154, 2006.
[18] United Nations, "World population prospects: the 2010 revision, CDROM
Edition," Department of Economic and Social Affairs, Population
Division, 2011.
[19] B. Verspagen, "R&D and productivity: a broad cross-section crosscountry
look," Journal of Productivity Analysis, vol. 6, no. 2, pp. 117-
135, 1995.
[20] Z. Griliches, R&D and productivity: the econometric evidence. Chicago:
University of Chicago press, 1998.
[21] R. E. J. Lucas, "On the mechanics of economic development," Journal
of Monetary Economics, vol. 22, no. 1, pp. 3-42, 1988.
[22] P. M. Romer, "Increasing returns and long-run growth," The Journal of
Political Economy, vol. 94, no. 5, pp. 1002-1037, 1986.
[23] P. M. Romer, "Endogenous technological change," The Journal of
Political Economy, vol. 98, no. 5 (Part 2), pp. S71-S102, 1990.
[24] C. J. Dahlman, B. Ross-Larson, and L. E. Westphal, "Managing
technological development: lessons from the newly industrializing
countries," World Development, vol. 15, no. 6, pp. 759-775, 1987.
[25] P. Reddy, "R&D-related FDI in developing countries: implications for
host countries," United Nations Conference on Trade and Development,
Geneva, 2005.
[26] M. Nieto and P. Quevedo, "Absorptive capacity, technological
opportunity, knowledge spillovers, and innovative effort,"
Technovation, vol. 25, no. 10, pp. 1141-1157, 2005.
[27] K. R. Fabrizio, "Absorptive capacity and the search for innovation,"
Research Policy, vol. 38, no. 2, pp. 255-267, 2009.
[28] R. Veugelers, "Internal R & D expenditures and external technology
sourcing," Research Policy, vol. 26, no. 3, pp. 303-315, 1997.
[29] W. Tsai, "Knowledge transfer in intraorganizational networks: effects of
network position and absorptive capacity on business unit innovation
and performance," The Academy of Management journal, vol. 44, no. 5,
pp. 996-1004, 2001.
[30] S. Girma and H. Görg, "Foreign direct investment, spillovers and
absorptive capacity: evidence from quantile regressions," Deutsche
Bundesbank Discussion Paper No. 13/2005, 2005.
[31] L. Kim, Imitation to innovation: the dynamics of Korea-s technological
learning. Massachusetts: Harvard Business School Press, 1997.
[32] D. Archibugi and A. Coco, "A new indicator of technological
capabilities for developed and developing countries (ArCo)," World
Development, vol. 32, no. 4, pp. 629-654, 2004.
[33] C. Edquist, "System of innovation: perspectives and challenges," in The
Oxford Handbook of Innovation, J. Fagerberg, D. C. Mowery, and R. R.
Nelson, Eds. Oxford University Press, 2004, pp. 181-208.
[34] B. Carlsson, S. Jacobsson, M. Holmén, and A. Rickne, "Innovation
systems: analytical and methodological issues," Research Policy, vol.
31, no. 2, pp. 233-245, 2002.
[35] C. J. Dahlman, "Improving technology, skills and innovation in South
Asia," in South Asia: Growth and Regional Integration, A. Ahmed and
E. Ghani, Eds. Macmillan India Ltd., 2007.
[36] P. Intarakumnerd, P. Chairatana, and T. Tangchitpiboon, "National
innovation system in less successful developing countries: the case of
Thailand," Research Policy, vol. 31, no. 8-9, pp. 1445-1457, 2002.
[37] L. Alcorta and W. Peres, "Innovation systems and technological
specialization in Latin America and the Caribbean," Research Policy,
vol. 26, no. 7-8, pp. 857-881, 1998.
@article{"International Journal of Business, Human and Social Sciences:52816", author = "Abdul Waheed", title = "Why Developing Countries Are Lesser Innovators", abstract = "In this paper, we observe that developed countries are generally equipped with innovation capabilities and produce major chunk of the world-s knowledge and technology. The contribution of developing countries, on the other hand, is insignificant, and most of them far behind the global technological front. More specifically, we empirically observe that the developing world neither contributes substantially to the world-s scientific publications nor to the R&D activities. They also have lesser “absorptive capacity" and “technological capability", and their “innovation systems" are plagued with many problems. Finally, we argue that these countries can break the shackles and improve their innovation capabilities by pursuing genuine innovation policies on long-term basis with honesty and commitment.
", keywords = "Absorptive capacity, Developing countries,
Scientific publications, Technological capability", volume = "6", number = "7", pages = "1748-6", }
