Globalization of R&D and China – Empirical Observations and Policy Implications

As one of the world’s largest recipients of Foreign Direct Investment (FDI), China is emerging as a key global player in Research and Development (R&D). This rapid increase in R&D investment is mainly attributed to the effort of strengthening the indigenous innovation capacity of domestic actors and, to an increasing extent, to the process of globalization of R&D with multinational enterprises as key driving force. This paper provides a detailed overview of the relative importance of foreign R&D in China based on quantitative mapping in terms of R&D inputs, outputs and local linkages in R&D-related activities, combined with an in-depth description of the nature of foreign R&D activities. Our empirical observation suggests that the growing importance of China in the globalization of R&D is more than a ‘flash-in-the-pan’. On one hand, China is facing new challenges, but at the same time is attempting to seize the “window of opportunity” to compete for knowledge and human resources through structural adjustments and new policy initiatives. On the other hand, multinational enterprises from OECD countries are not only intensifying, but also diversifying their activities in a larger number of R&D intensive sectors in China. In such a rapid and dynamic development, China seems to emerge not only as an important source of R&D but also a key magnet of global R&D operations.China; R&D; Globalization; Multinationals

Growth & Innovation Policies For a Knowledge Economy. Experiences From Finland, Sweden & Singapore.

Technical progress is at the heart of economic growth and development. New or improved technology can be achieved through own research and innovations or through the absorption and adaptation of foreign technologies. To facilitate such technical progress requires a complex system of supporting institutions and good economic policies. This paper analyzes technical progress and innovation policies in three small open economies: Finland, Sweden and Singapore. All three economies have transformed from depending on raw material intensive or labor-intensive production to highly competitive economies with a relatively high degree of technological knowledge. We find some common determinants to the transformation, such as large investments in physical and human capital and the importance of political or economic crises in forcing through good economic policies, but there are also many country specific aspects that have been crucial in the different countries.Economic Growth; Innovation; Economic Policies; Technology

The Digitalisation of African Agriculture Report 2018-2019

An inclusive, digitally-enabled agricultural transformation could help achieve meaningful livelihood improvements for Africa’s smallholder farmers and pastoralists. It could drive greater engagement in agriculture from women and youth and create employment opportunities along the value chain. At CTA we staked a claim on this power of digitalisation to more systematically transform agriculture early on. Digitalisation, focusing on not individual ICTs but the application of these technologies to entire value chains, is a theme that cuts across all of our work. In youth entrepreneurship, we are fostering a new breed of young ICT ‘agripreneurs’. In climate-smart agriculture multiple projects provide information that can help towards building resilience for smallholder farmers. And in women empowerment we are supporting digital platforms to drive greater inclusion for women entrepreneurs in agricultural value chains

Innovative Asia: Advancing the Knowledge-Based Economy - Highlights of the Forthcoming ADB Study Report

[Excerpt] The development of knowledge-based economies (KBEs) is both an imperative and an opportunity for developing Asia. It is an imperative to sustain high rates of growth in the future and an opportunity whereby emerging economies can draw from beneficial trending developments that may allow them to move faster to advance in global value chains and in position in world markets. Over the last quarter of a century, driven mostly by cheap labor, developing countries in Asia have seen unprecedented growth rates and contributions to the global economy. Sustaining Asia’s growth trajectory, however, requires developing economies to seek different approaches to economic growth and progress, especially if they aspire to move from the middle-income to the high-income level. KBE is an important platform that can enable them to sustain growth and even accelerate it. It is time for Asia to consolidate and accelerate its pace of growth. Asia is positioned in a unique moment in history with many advantages that can serve as a boost: to name a couple, an expanding middle of the pyramid—Asia is likely to hold 50% of the global middle class and 40% of the global consumer market by 2020; and the growing importance of intra-regional trade within Asia, increasing from 54% in 2001 to 58% in 2011. Many developing economies are well placed to assimilate frontier technologies into their manufacturing environment

Stimulating innovation in Russia: the role of institutions and policies

This paper examines the potential role of innovation policy in enhancing long-term productivity growth in Russia. It begins by exploring the role of framework conditions for business in encouraging innovative activities, particularly with respect to intellectual property rights and competition. Realising Russia’s innovation potential will also require reform of the large public science sector. This raises issues pertaining to the organisation and financing of public research bodies and, in particular, to the incentives and opportunities they face in commercialising the results of their research. Finally, the paper looks at the potential role of direct interventions, such as special economic zones and technoparks, as well as the scope for improving the tax regime for private-sector R&D

Global Innovation Policy Index

Ranks fifty-five nations' strategies to boost innovation capacity: policies on trade, scientific research, information and communications technologies, tax, intellectual property, domestic competition, government procurement, and high-skill immigration

Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam

Foreign investors are expected to contribute to economic development through a variety of channels. However, many foreign investment operations are small, and almost insignificant in their impact on the local environment. An important indication of the potential contribution of foreign investors is thus their employment growth. Employees working for, and trained by, a multinational enterprise may become carriers of new technology and business practices. The more employees receive access to new knowledge, the more they in turn may spread the knowledge across the economy, for instance by setting up their own businesses. In this paper, we make a first step in investigating the determinants of this important mediating variable, employment growth. For a dataset covering four diverse emerging economies, we find that wholly-owned FDI operations have higher employment growth, while local industry characteristics moderate the growth effect.http://deepblue.lib.umich.edu/bitstream/2027.42/40093/3/wp707.pd

The Diffusion of Modern technologies in Namibia

Keywords: Namibia, Regional Development, Innovation Systems, Planning During the last decade, globalisation and modern technologies have engendered as much challenges as opportunities for economies of many states in several respects. This is especially true for less developed countries such as Namibia. With the rapid introduction of new modern technologies and speedy disposal of the old ones; many nation states face a spatial change. Hypothetically, they respond differently to this challenge. Innovation diffusion implies the questions: by what criteria and for whom? Moreover, diffusion suggests a process of making new technologies adopted or made available over a wide geographically defined area. If indeed, there is a diffusion of innovations in Namibia, how is it taking place? In the age of globalisation, is it global forces that are ‘shipping’ new technologies to Namibia? Could it be that innovations are closely tied to the education system and the country’s multicultural set-up? Or, is it people/companies on the move who carry innovations with? And, what is unique about Namibia, regarding this process? This paper is an attempt to discuss the processes of technology and innovation adoptions in the sectors of agriculture, fisheries and mining in Namibia – in the context of regional and local development. The main research questions focus on: Which factors promotes innovations and which ones impedes innovations, and how does local conditions change, accordingly developing an economy from a resource-based to an information society? This work seeks to develop a theory that considers regional and local development as an output of interacting local actors - a kind of ‘Reflective causation’ of development. According to this approach, the spatiality of innovation adoption and the process of transformation are primarily induced by a network of internal forces motivated by history. In this context, history not from a nationalist perspective but from a spatial viewpoint, forms the basis of a nation’s identity and models a country’s economic development. In addition to an earlier hypothesis, other factors: market strategy, demand conditions, structural elements and global forces do not halt development, they broaden and amplify the spatiality of development. The data, which forms the basis of my analysis, will be drawn from key informant interviews from June to September 2002 in the Republic of Namibia.