Assessing the potential for knowledge-based development in transition countries. Bruegel Working Paper 2010/01, May 2010

This Working Paper by Bruegel Senior Fellow Reinhilde Veugelers examines the potential for a knowledge-based growth path in transition countries of central and eastern Europe, the Caucasus and Central Asia. The paper looks closely at how total-factor productivity, a residual growth factor commonly interpreted as reflecting technological progress, drives growth rates in these economies which exhibit a much lower GDP per capita compared to the EU15 or the United States. By analysing the prerequisites for knowledge-based growth, the author explains why transition countries are at a systemic disadvantage relative to the EU15, US and Japan and have limited potential for knowledge-based growth

Regional innovation and spillover effects of foreign direct investment in China: a threshold approach

Using a data set on twenty-nine Chinese provinces for the period 1985–2008, this paper establishes a threshold model to analyse the relationship between spillover effects of foreign direct investment (FDI) and regional innovation in China. There is clear evidence of double-threshold effects of regional innovation on productivity spillovers from FDI. Specifically, only when the level of regional innovation reaches the minimum innovation threshold will FDI in the region begin to produce positive productivity spillovers. Furthermore, positive productivity spillovers from FDI will be substantial only when the level of regional innovation attains a higher threshold. The double threshold divides Chinese provinces into three super-regions in terms of innovation, with most provinces positioned within the middle-level innovation super-region. Policy implications are discussed

Lessons from China: building technological capabilities for low carbon technology transfer and development

Using case study analysis across three sectors in China (cement, electric vehicles and coal fired electricity generation) and theoretical insights from the innovation studies literature, this paper analyses the development of China’s technological capabilities in low carbon technologies and the ways in which public policies have contributed to developing these capabilities. It finds that China has developed significant capabilities via a strategic approach. The paper’s findings have significant implications for international policies designed to support low carbon technology transfer to developing countries and broader processes of low carbon technological change and development. Such policies should go beyond the traditional focus on the transfer of technology hardware to focus on the development of low carbon technological capabilities in developing country firms

China’s low carbon technology ambitions: the relationship between indigenous innovation and technological transfer

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UK-China collaborative study on low carbon technology transfer: final report

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Conditions And Prospects For Development Of Innovation In EU Economies In Light Of The Europe 2020 Strategy

The paper consists of three parts. The first part outlines the essence and objectives of the Europe 2020 Strategy. The second part contains an analysis of the level of innovativeness of the EU economies compared with U.S., Japan and South Korea. The third part focuses on the conditions and prospects for the development of innovative economies in the European UnionCelem opracowania jest wyjaśnienie istoty Strategii Europa 2020 ze szczególnym uwzględnieniem projektów rozwojowych w dziedzinie innowacyjności, dokonanie oceny poziomu innowacyjności gospodarek unijnych na tle USA, Japonii i Korei Płd., a także odpowiedź na pytanie dotyczące warunków rozwoju innowacyjności unijnego obszaru gospodarczego w świetle celów programowych Strategii. Opracowanie składa się z trzech części. W części pierwszej przedstawione są istota i założenia Strategii Europa 2020. Część druga zawiera analizę poziomu innowacyjności gospodarek Unii Europejskiej w porównaniu z USA, Japonią i Koreą Płd. W części trzeciej rozważania koncentrują się na przedstawieniu uwarunkowań i perspektyw rozwoju innowacyjności gospodarek Unii Europejskiej

Assessing the potential for knowledge-based development in transition countries

This Working Paper by Bruegel Senior Fellow Reinhilde Veugelers examines the potential for a knowledge-based growth path in transition countries of central and eastern Europe, the Caucasus and Central Asia. The paper looks closely at how total-factor productivity, a residual growth factor commonly interpreted as reflecting technological progress, drives growth rates in these economies which exhibit a much lower GDP per capita compared to the EU15 or the United States.  By analysing the prerequisites for knowledge-based growth, the author explains why transition countries are at a systemic disadvantage relative to the EU15, US and Japan and have limited potential for knowledge-based growth.

Indigenous Innovation In China: Implications For Sustainable Growth

This paper aims to examine indigenous innovation and draw implications for sustainable economic growth in China. It investigates China’s capacity and achievements in indigenous innovation at both the macro and micro levels. China’s indigenous innovation is also compared to that in other major economies in the world. It is found that China’s innovation development is well ahead of other economies at the similar stage of development but there is a gap between China and the world’s leading innovative economies. Both aggregate and disaggregate evidence shows that China is catching up rapidly with the world’s innovation leaders. If current growth momentum is maintained, China is well positioned to become one of the most innovative economies in the world in the coming decade. There are however some serious issues to be resolved before China’s innovation potential could be realized.Indigenous innovation, R&D, Chinese economy

Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries

Theories suggesting either static or dynamic productivity gains derived from exports often assume the prior existence of a perfect market. In the presence of market failure, however, the competition effect and the resource reallocation effect of exports on productive efficiency may be greatly reduced; and there may actually be disincentives for innovation. This paper analyses the impact of exports on total factor productivity (TFP) growth in a transition economy using a panel of Chinese manufacturing industries over the period 1990-1997. TFP growth is estimated by employing a non-parametric approach and is decomposed into technical progress and efficiency change. We have not found evidence suggesting significant productivity gains at the industry level resulting from exports. Findings of the current study suggest that, for exports to generate significant positive effect on TFP growth, a well?developed domestic market and a neutral, outward-oriented policy are necessary.exports, industrial efficiency, technical progress, productivity