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Creating the Capacity to Benefit from Technological Change in Developing Countries

Author

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  • Wamae, Watu

    (CEDERS, Faculté des Sciences Economique et Gestion, Université de la Méditerranée)

Abstract

What really makes an economy competitive? This paper reviews and discusses how the capacity to generate, exploit and diffuse new knowledge is key in enabling countries to capitalise on challenges brought about by rapid technology-driven transformations rather than succumb to their adverse effects. In particular, we look at the importance of new knowledge emanating from both domestic and foreign sources in the innovation process in view of the contention that "international technology transfer" is critical for growth in developing countries. We find that there is a tight link between high rates of technology acquisition and high investment ratios, and that the absorptive capacity is a sine qua non of foreign technology benefits.

Suggested Citation

  • Wamae, Watu, 2006. "Creating the Capacity to Benefit from Technological Change in Developing Countries," MERIT Working Papers 2006-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2006021
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    File URL: https://unu-merit.nl/publications/wppdf/2006/wp2006-021.pdf
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    Cited by:

    1. Elias Carayannis & Vivienne Wang, 2012. "Competitiveness Model—A Double Diamond," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(3), pages 280-293, September.

    More about this item

    Keywords

    absorptive capacity; knowledge; developing countries; systems of innovation;
    All these keywords.

    JEL classification:

    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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