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The Role of Science and Technology Policy in Small Economies

Author

Listed:
  • Heikkilä, Tuomo
  • Kiander, Jaakko
  • Hjerppe, Reino
  • Berghäll, Elina
  • Kilponen, Juha
  • Lavrac, Vladimir
  • Stanovnik, Peter

Abstract

KNOGG, an EU financed thematic network, studies the role ST&I policies play in driving economic growth in six small European economies. It aims to develop guidelines at the EU level for improving knowledge-based growth in small European economies. This report sets the stage of the project, and provides a selective survey of the current literature on economic growth from the point of view of small open economies. Based on the New Growth Theory and Schumpeterian view of innovation, this report develops a conceptual framework for the project. The constraints imposed by country size and available resources as well as their implications for knowledge-based growth strategies are highlighted. Although ST&I policies in small countries may be more knowledgediffusion oriented, sole reliance on imitation strategies and foreign spillovers may lead to under-investment in domestic R&D and to difficulties to absorb new technologies. In this respect the KNOGG countries' past and current experiences in ST&I policies are rather mixed and diversified.

Suggested Citation

  • Heikkilä, Tuomo & Kiander, Jaakko & Hjerppe, Reino & Berghäll, Elina & Kilponen, Juha & Lavrac, Vladimir & Stanovnik, Peter, 2002. "The Role of Science and Technology Policy in Small Economies," Research Reports 91, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:91
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    File URL: https://www.doria.fi/handle/10024/148543
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    Citations

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    Cited by:

    1. Kadri Ukrainski & Jaan Masso & Hanna Kanep, 2014. "Cooperation patterns in science within Europe: the standpoint of small countries," Scientometrics, Springer;Akadémiai Kiadó, vol. 99(3), pages 845-863, June.
    2. Berghäll, Elina, 2008. "Revealing Agglomeration Economies with Stochastic Frontier Modelling in the Finnish ICT Industry," Discussion Papers 435, VATT Institute for Economic Research.
    3. Kiander, Jaakko & Berghäll, Elina, 2003. "The Finnish Model of STI Policy: Experiences and Guidelines. KNOGG Thematic Network WP4 Country Report - Finland," Discussion Papers 313, VATT Institute for Economic Research.
    4. Berghäll, Elina, 2006. "RD and Productivity Growth in Finnish ICT Manufacturing," Discussion Papers 388, VATT Institute for Economic Research.

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