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This paper examines international technology transfers using firm-level data across 43 developing countries. Its findings show that exporting and importing activities are important channels for the transfer of technology. Majority foreign-owned firms are less likely to engage in technological innovations than minority foreign-owned firms or domestic firms. The authors interpret this finding as evidence that the technology transferred from multinational parents to majority-owned subsidiaries is more mature than that transferred to minority-owned subsidiaries. Their findings also suggest that foreign-owned subsidiaries rely mostly on the direct transfer of technology from their parents and that firms that import intermediate inputs are more likely to acquire new technology from their machinery suppliers.
This paper examines international technology transfers using firm-level data across 43 developing countries. Its findings show that exporting and importing activities are important channels for the transfer of technology. Majority foreign-owned firms are less likely to engage in technological innovations than minority foreign-owned firms or domestic firms. The authors interpret this finding as evidence that the technology transferred from multinational parents to majority-owned subsidiaries is more mature than that transferred to minority-owned subsidiaries. Their findings also suggest that foreign-owned subsidiaries rely mostly on the direct transfer of technology from their parents and that firms that import intermediate inputs are more likely to acquire new technology from their machinery suppliers.
The authors analyze the role of international technological diffusion for firm-level technological innovations in several developing countries. Their findings show that, after controlling for firm, industry, and country characteristics, exporting and importing activities are important channels for the diffusion of technology. They also find evidence that the majority of foreign-owned firms are significantly less likely to engage in technological innovations than minority foreign-owned firms or domestic-owned firms. The authors interpret this finding as evidence that the technology transferred from multinational parents to majority-owned subsidiaries is more mature than that transferred to minority-owned subsidiaries. This finding supports the idea that equity joint ventures maximize technology transfers to local firms.
Since Schumpeter, economists have argued that vast productivity gains can be achieved by investing in innovation and technological catch-up. Yet, as this volume documents, developing country firms and governments invest little to realize this potential, which dwarfs international aid flows. Using new data and original analytics, the authors uncover the key to this innovation paradox in the lack of complementary physical and human capital factors, particularly firm managerial capabilities, that are needed to reap the returns to innovation investments. Hence, countries need to rebalance policy away from R and D-centered initiatives †“ which are likely to fail in the absence of sophisticated private sector partners †“ toward building firm capabilities, and embrace an expanded concept of the National Innovation System that incorporates a broader range of market and systemic failures. The authors offer guidance on how to navigate the resulting innovation policy dilemma: as the need to redress these additional failures increases with distance from the frontier, government capabilities to formulate and implement the policy mix become weaker. This book is the first volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers.
AN ECONOMIST BOOK OF THE YEAR Humanity's embrace of openness is the key to our success. The freedom to explore and exchange - whether it's goods, ideas or people - has led to stunning achievements in science, technology and culture. As a result, we live at a time of unprecedented wealth and opportunity. So why are we so intent on ruining it? From Stone Age hunter-gatherers to contemporary Chinese-American relations, Open explores how across time and cultures, we have struggled with a constant tension between our yearning for co-operation and our profound need for belonging. Providing a bold new framework for understanding human history, bestselling author and thinker Johan Norberg examines why we're often uncomfortable with openness - but also why it is essential for progress. Part sweeping history and part polemic, this urgent book makes a compelling case for why an open world with an open economy is worth fighting for more than ever.
After a half century of transformative economic progress that moved hundreds of millions of people out of poverty, countries in developing East Asia are facing an array of challenges to their future development. Slowed productivity growth, increased fragility of the global trading system, and rapid changes in technology are all threatening export-oriented, labor-intensive manufacturing—the region’s engine of growth. Significant global challenges—such as climate change and the COVID-19 pandemic—are exacerbating economic vulnerability. These developments raise questions about whether the region’s past model of development can continue to deliver rapid growth and poverty reduction. Against this background, The Innovation Imperative in Developing East Asia aims to deepen understanding of the role of innovation in future development. The report examines the state of innovation in the region and analyzes the main constraints that firms and countries face to innovating. It assesses current policies and institutions, and lays out an agenda for action to spur more innovation-led growth. A key finding of the report is that countries’ current innovation policies are not aligned with their capabilities and needs. Policies need to strengthen the capacity of firms to innovate and support technological diffusion rather than just invention. Policy makers also need to eliminate policy biases against innovation in services, a sector that is growing in economic importance. Moreover, countries need to strengthen key complementary factors for innovation, including firms’ managerial quality, workers’ skills, and finance for innovation. Countries in developing East Asia would also do well to deepen their tradition of international openness, which could foster openness in other parts of the world. Doing so would help sustain the flows of ideas, trade, investment, and people that facilitate the creation and diffusion of knowledge for innovation.
The Open African Innovation Research and Training (Open A.I.R.) project focused on the intersection of innovation, intellectual property (IP), and development in Africa and this book offers its research findings. Its case studies cover nine African countries--Egypt, Nigeria, Ghana, Ethiopia, Uganda, Kenya, Mozambique, Botswana, and South Africa--looking at IP rights in a range of sites of innovation: agricultural production, biofuel technology, traditional medicine, research collaboration, automotive manufacturing, music production, and scholarly publishing.
The main focus of this book is innovation for developing countries: what is the innovation for, what are the current conditions of the innovation, and how to effectively innovate in developing economies. It contains the latest insights and analyses of innovation based on intensive interviews as well as primary and secondary data of manufacturing firms in developing countries, Vietnam and Laos in particular. Innovation requires something new. Integration of deep understanding of innovation and econometric analyses are a “new combination” in this book, which contrasts with other, similar books in the field. This new approach may benefit policy makers as well as scholars and firms in poor countries. The main points of the book are summarized as follows: First, for most poor countries “learning innovation” is considered the key to economic growth rather than “leading-edge innovation”, which is a more popular theme in similar books on innovation. Second, an overwhelming majority of innovations currently used in poor countries are developed in advanced countries, so technology transfer and learning from the latter are a fundamental source of innovation in the former. Third, a surprisingly high rate of firms (around 50%) reported that they introduced new or significantly improved products or processes in poor countries, and this high innovation rate is a great benefit to be enhanced by government policies. Fourth, the common factors driving innovation of manufacturing firms in Vietnam and Laos are (1) human capital, (2) social capital, and (3) innovation in the past. Fifth, the impact of innovation on firm performance is found to be mixed in these countries. Sixth, so far almost all studies on innovation have focused on product or process innovation, but additional light is shed here on organizational innovation.
"Based on the author's extensive field research, academic study, and professional experience, Open Innovation calls for revolutionary organizing principles for managing research and innovation. Through descriptions of the innovation processes of Xerox, IBM, Proctor & Gamble, and other firms, Henry Chesbrough shows you the principles of open innovation in practice."--BOOK JACKET.
It is widely accepted that technology is one of the forces driving economic growth. Although more and more new technologies have emerged, various evidence shows that their performances were not as high as expected. In both academia and practice, there are still many questions about what technologies to adopt and how to manage these technologies. The 15 articles in this book aim to look into these questions. There are quite many features in this book. Firstly, the articles are from both developed countries and developing countries in Asia, Africa and South and Middle America. Secondly, the articles cover a wide range of industries including telecommunication, sanitation, healthcare, entertainment, education, manufacturing, and financial. Thirdly, the analytical approaches are multi-disciplinary, ranging from mathematical, economic, analytical, empirical and strategic. Finally, the articles study both public and private organizations, including the service industry, manufacturing industry, and governmental organizations. Given its wide coverage and multi-disciplines, the book may be useful for both academic research and practical management.