Why Technological Spillovers elude Developing Countries A Dynamic Non-linear Model

This paper attempts to theoretically understand the process of catching-up or falling behind particularly within the context of developing countries. The main aim of the paper consists in investigating the impact of domestic innovation, via its interaction with the learning capability, on the technology gap of an economy. More specifically, we seek to shed some light on why the tendency for poor countries to fall further behind, despite efforts to improve their learning capabilities, appears pervasive. Our analysis is based on a simple model of technology gap elaborated by Verspagen (1991). We find that domestic innovation, a critical component for the development of an absorptive capacity, is a significant determinant of whether an economy catches-up or falls further behind.Technology gap, absorptive capacity, developing countries

Are North-South Technological Spillovers Substantial? : A Dynamic Panel Data Model Estimation

This paper argues that actual technological spillovers are not substantial in developing countries because of the absence of an absorptive capacity. We carry out a panel data analysis in an attempt to gain insight into the specific aspects that enable economies to benefit from the backlog of existing knowledge. Our findings indicate that low productivity effects of human capital coupled with weak or virtually inexistent systems of innovation are at the root of the observed ambiguity with regard to the spillovers gains that are expected to play a significant role in sparking growth.absorptive capacity, spillovers, developing countries, systems of innovation

A Technology Acquisition Model: The Role of Learning and Innovation

This paper theoretically analyses the dynamics of knowledge accumulation with the aim of understanding how developing economies can effectively engage in the process of knowledge accumulation. The main focus is on the complementarity between competence building and innovation. Our analysis is based on a simple standard economics model for the sake of clarity in understanding the link between the need for collaboration and competition in the innovation process at the national level. We find that the importance of developing an absorptive capacity in the knowledge generation process cannot be over-emphasized.absorptive capacity, competences, domestic innovation, developing countries

Creating the Capacity to Benefit from Technological Change in Developing Countries

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.absorptive capacity, knowledge, developing countries, systems of innovation

Pharmaceuticals in Kenya: The Evolution of Technological Capabilities

As Chapter 1 briefly outlined, Kenya has a strong and long-standing pharmaceutical industry. A 2015 Business Monitor report on pharmaceutical manufacturing in Kenya states that the country hosts the largest pharmaceutical industrial base in East Africa. The report also sees a bright future as a ‘potential base for export across East Africa’ (BMI Research, 2015). This chapter locates the Kenyan pharmaceutical industry within the country’s historical context of industrial development and growth

Enhancing the Role of Knowledge and Innovation for Development

Parallel session 7. Innovation research for developmentPresented at GLOBELICS 2009, 7th International Conference, 6-8 October, Dakar, Senegal.The broad aim of this study is to improve our understanding of the nature, extent and importance of commercialisation of knowledge in developing countries. The commercialisation of “new” knowledge, whether generated locally or obtained from foreign sources, is to a large extent determined by the ability to translate it into socio-economic solutions. This necessarily suggests that the commercialisation of knowledge cannot effectively be analysed in isolation from other core components (actors, activities and linkages) of the science, technology and innovation system. This paper addresses two main issues: (i) What are the core elements that enable “new” knowledge to successfully undergo transformations that respond to demand dynamics? (ii) What are the implications of these core elements for knowledge commercialisation in developing countries

Local Supply Chains for Medicines and Medicinal Supplies in Kenya: Understanding the Challenges

This Working Paper presents some findings from a research project on Industrial Productivity and Health Sector Performance, collaborative research by the African Centre for Technology Studies (ACTS), Nairobi; REPOA, Dar es Salaam; and The Open University, UK. The project aimed to identify opportunities for improved local industrial supply of medical products to strengthen Kenyan and Tanzanian health system performance. This working paper briefly outlines project methods and key concepts. It then summarises findings from health sector research in four Kenyan districts on the supply chains for selected essential medicines and supplies to facilities in the public, private and faith-based sectors and to private shops. The paper analyses strengths and weaknesses of the public and private supply chains into the health sector, as seen by health facility and pharmacy staff

Improving the Supply Chains for the Health Sector: What Role for Locally Manufactured and Imported Medicines and Medical Supplies in Kenya?

This Issue Paper presents some findings on research on supply within Kenya from local manufacturers to the health system. It compares the sourcing of local supplies and competing imports within the public, private and faith-based sectors of health care. Finally, it presents perceptions of Kenyan health sector actors at all levels on the extent to which improved local manufacturing supplies could help to increase access to essential medicines and medical supplies within Kenya. The evidence presented here was collected as part of a research project entitled Industrial Productivity and Health Sector Performance (www.iphsp.acts-net.org).This was a collaborative research project undertaken by the African Centre for Technology Studies (ACTS), Nairobi; REPOA, Dar es Salaam; and The Open University, UK. The project aims to identify opportunities for improved local industrial supply of medical products to strengthen Kenyan and Tanzanian health system performance

Below the Radar: What does Innovation in Emerging Economies have to offer other Low Income Economies?

Between 1970 and 2000 the proportion of global R&D occurring in low income economies rose from two percent to more than 20 percent. However, this rising commitment to R&D does not easily translate into the emergence of a family of innovations meeting the needs of low income consumers "at the bottom of the pyramid", since much of these technological resources are invested in outdated structures of innovation. A number of transnational corporations are targeting these markets but it is our contention that much of the previously dominant innovation value chains are either ignorant of the needs of consumers at the bottom of the pyramid, or lack the technologies and organisational structures to meet these needs effectively. Instead, the firms and value chains that are likely to be most successful in these dynamic new markets are those that are emerging in China and India and other developing countries, disrupting global corporate and locational hierarchies of innovation.Science and Technology, Asian drivers, Innovation Systems, Millennium Development Goals

Below the radar: What does innovation in the asian driver economies have to offer other low income economies

Between 1970 and 2000, the proportion of global R&D occurring in low income economies rose from two percent to more than 20 percent. However, this rising commitment to R&D does not easily translate into the emergence of a family of innovations meeting the needs of low income consumers “at the bottom of the pyramid”, since much of these technological resources are invested in outdated structures of innovation. A growing number of transnational corporations are targeting these markets reflecting dynamic new currents in best-practice innovation. Yet it is our contention that much of the previously dominant innovation value chains are either ignorant of the needs of consumers at the bottom of the pyramid, or lack the technologies and organisational structures to meet these needs effectively. Instead, the firms and value chains which are likely to be most successful in these dynamic new markets are those which are emerging in China and India, disrupting global corporate and locational hierarchies of innovation