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Some Implications Of Endogenous Technological Change For Technology Policies In Developing Countries

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  • Richard Lipsey

Abstract

Part I contrasts the general types of policy advice that follow from three different approaches to understanding economic growth and technological change. Neoclassical theory gives policy advice that is assumed to be relevant for all countries at all times: remove sources of 'market failures'. Romer's branch of new macro growth theory stresses the nature of knowledge, non-rivalrous and partly appropriable. Structuralist-evolutionary theory is micro based and stresses the uncertainty that is associated with technological advance. Both of the latter approaches conclude that the neoclassical optimal allocation of resources is unachievable and hence the policy advice of removing impediments to achieving that optimum is not well grounded. As a result, policy advice for enhancing technological change must rely on a mixture of theory, empirical analysis and policy judgement. Part II deals with the large amount of context-specific policy advice that follows from structuralist-evolutionary theories.

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  • Richard Lipsey, 2002. "Some Implications Of Endogenous Technological Change For Technology Policies In Developing Countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 321-351.
    • Handle: RePEc:taf:ecinnt:v:11:y:2002:i:4-5:p:321-351
    DOI: 10.1080/10438590200000003
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    References listed on IDEAS

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    1. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    2. B. C. Eaton & Richard G. Lipsey, 1997. "On the Foundations of Monopolistic Competition and Economic Geography," Books, Edward Elgar Publishing, number 1233.
    3. Slavo Radosevic, 1999. "International Technology Transfer and Catch-Up in Economic Development," Books, Edward Elgar Publishing, number 1386.
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    Cited by:

    1. Aydogan, Neslihan & Lyon, Thomas P., 2004. "Spatial proximity and complementarities in the trading of tacit knowledge," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1115-1135, November.
    2. Vinish Kathuria, 2019. "Growth and Investment: Testing for the Relationship for South Asian Countries," Millennial Asia, , vol. 10(3), pages 337-371, December.
    3. Basant, Rakesh, 2017. "Exploring Linkages between Innovation and public policy- challenges and Opportunities," IIMA Working Papers WP 2017-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Brian Muyambiri & Nicholas M. Odhiambo, 2018. "The Impact Of Financial Development On Investment: A Review Of International Literature," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 9(2).
    5. Rakesh Basant, 2018. "Exploring Linkages between Industrial Innovation and Public Policy: Challenges and Opportunities," Vikalpa: The Journal for Decision Makers, , vol. 43(2), pages 61-76, June.
    6. Richard Lipsey, 2001. "Successes and failures in the transformation of economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 169-201.
    7. Anthony Bartzokas & Morris Teubal, 2002. "A Framework for Policy Oriented Innovation Studies in Industrialising Countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 477-496.
    8. Alberto Melo, 2001. "Los sistemas de innovación en América Latina y el Caribe," Research Department Publications 4284, Inter-American Development Bank, Research Department.
    9. Carlsson , Bo, 2016. "Industrial Dynamics: A Review of the Literature 1990-2009," Papers in Innovation Studies 2016/3, Lund University, CIRCLE - Centre for Innovation Research.
    10. Basant, Rakesh & Chandra, Pankaj & Upadhyayula, Rajesh, 2011. "Knowledge Flows and Capability Building in the Indian IT Sector: A Comparative Analysis of Cluster and Non-Cluster Locations," IIMA Working Papers WP2011-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. Alberto Melo, 2001. "The Innovation Systems of Latin America and the Caribbean," Research Department Publications 4283, Inter-American Development Bank, Research Department.

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    More about this item

    Keywords

    Structuralist; evolutionary; infant industries; technology transfer; monopolistic competition; technology policies; JEL Classification: JH11; O38;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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