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Technology Policy: Determining Effects of Incentives for Industry Competitiveness Using System Dynamics

In: MANAGING TECHNOLOGICAL INNOVATION Tools and Methods

Author

Listed:
  • Martin Kaggwa
  • Jasper L. Steyn
  • Anastassios Pouris

Abstract

In an effort to support competitiveness in domestic industries, many late developing countries offer incentives based on investment in machinery and tooling, and local R&D. The configuration of the incentives is often based on internalized judgment rather than on formal models, making it difficult to assess such interventions objectively and to improve on them. Formalization of such policy interventions makes explicit the factors underlying performance and can reveal high-leverage policy options available to policy makers to influence performance. This chapter is aimed at showing how formalization of incentives policy for competitiveness can reveal insights useful in understanding performance of the target industry and how it can guide subsequent improvement of such policy interventions. This was done using the case of South Africa’s automotive industry.

Suggested Citation

  • Martin Kaggwa & Jasper L. Steyn & Anastassios Pouris, 2017. "Technology Policy: Determining Effects of Incentives for Industry Competitiveness Using System Dynamics," World Scientific Book Chapters, in: Tugrul U Daim (ed.), MANAGING TECHNOLOGICAL INNOVATION Tools and Methods, chapter 1, pages 1-24, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813207271_0001
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    More about this item

    Keywords

    Technology Management; Innovation; R&D Management;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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