Techno-Industrial Cooperation for Development in the Two Punjabs

Occasional Papers in Sociology and Anthropology - Peace and Democracy in South Asia, Volume 1, Issue 2, 200

Post-reform economic development in Punjab: constraints and remedies

Punjab economy has experienced a down turn in its economic development in the post-reform period compared with acceleration of economic growth of the Indian economy as well as other dynamic states. Therefore, a legitimate question arises why Punjab economy could not develop at a rate that has experienced by the Indian economy. An attempt has been made in this paper to explore economic development experience of Punjab economy in a comparative perspective to arrive at the factors that have contributed to the down turn in economic growth during the post-reform period. Alternative path of structural transformation has been worked out to rejuvenate and rebuild the economy of Punjab in the long run. Policy suggestions that can reverse the down turn in economic growth in short to medium term have also been identified.Punjab economy, economic development, deceleration of economic growth, Structural transformation, alternative path of development

India’s Economic Growth and the Role of Foreign Direct Investment

Indian economy has reached in the orbit of high rate of economic growth. She is being widely acclaimed and recognized as an emerging global economic power. The rate of growth recorded during the period 1950-51 to 2004-05 clearly showed a tendency of steady upward trend. However, the decade of eighties emerged as a beginning of the high rate of economic growth or at least a dramatic departure from the past growth performance. This tendency had continued in the 1990s and further growth stimulus has occurred in the early 21st century. This paper attempts to unravel the factors behind high growth trajectory and major structural problems encountered by the Indian economy. The question that begs for an explanation is that is high growth and inflows of FDI solve structural imbalance of Indian economy and will it succeed in improving the lot of bottom section of the Indian economy, which are living in abysmally poor socio-economic conditions in the countryside. The employment elasticity in the agriculture and industrial sector has gone down in the post-reform period, therefore, the creation of employment opportunities will be a gigantic task for the policy makers. FDI has come in the most capital-intensive sectors; therefore, the desired employment opportunities could not be created especially for the manual and the semi skilled labor. High skilled labor gained substantially. That is why high growth is called urban centric and thus has created a wedge between the rural and urban economy. There is urgent need to fill this void. Policy making process has matured in the democratic Indian polity since the independence. It is thus expected that the growing problems will receive mature response and policy will be articulated in such a manner to use FDI the way China has used to enhance economic growth while taking more and more investment to industrialize the rural sector of the Indian economy.Indian economic growth, public policy, structural change, Foreign direct investment

Domestic and International Knowledge Spillovers in the South Korean Manufacturing Industries.

This paper explores the relationship between the productivity growth and both domestic and international knowledge spillovers in the Korean manufacturing industries, using panel data for twenty eight industries over the period 1970-2000. To empirically verify the extent of domestic and international knowledge spillovers we have followed endogenous growth approach and wisdom from new international trade theory. We find strong productivity effects from industry’s own R&D as well as domestic and foreign knowledge spillovers. International knowledge spillovers transmitted by trade played dominant role in explaining productivity growth in the Korean manufacturing industries during the 1970s and 1980s, but the international knowledge spillovers did not play any significant role in the 1990s. This empirical finding has strong implications for the Korean technology policy as well as for the strict intellectual property rights regime enacted by the WTO.Knowledge spillovers; Productivity growth; Manufacturing industry; South Korea

PUBLIC POLICY AND EXPENDITURE ON R&D IN INDUSTRY

Public sector R&D in India has recorded a negative growth since 1991. Although there has been an increase in private sector investment in R and D, this cannot completely arrest the impact of the withdrawal of public investment and will result in a weaking of India's competitive strength in a rapidly globalising market.Public policy, R&D expenditure, Industry, techno-globalisation, India

Technological Progress, Structural Change and Productivity Growth in Manufacturing Sector of South Korea

This paper focuses on the impact of technology, structural change on the aggregate productivity growth in manufacturing sector of South Korea, using the eight firm size classes over the period 1970-2000. The conventional shift-share analysis is used to measure the impact of shift of both labor and capital inputs. The results show that structural change on average has been conducive to productivity growth during the 1970s and this pattern reversed afterwards. Small and medium industries were more dynamic in terms of reallocation of resources, however, their positive impact out-weighed because of the dominance of large sized firms in the manufacturing sector. Deliberate state policy favoring large sized firms has impeded restructuring process facilitated by technical progress may have a penalty in terms of forgone growth.

National Innovation System in the Era of Liberalization: Implications for Science and Technology Policy for Developing Economies

The national system of innovations in the recent phase of globalization has undergone dramatic structural transformation. Innovations entails organizational as well as changes in the rules of the game. The history of economic development of the developing and newly industrializing economies shows that national systems of innovation have evolved keeping in view the most pressing requirements of the national economic development. The knowledge generation and transmission are the two essential characteristics of national innovation system that connects the users and producers of knowledge and also allows institutional arrangements to functions as a feedback system. The institutional arrangements are being altered substantially to allow capital to move freely across national borders on the one side and strict trade related intellectual property rights on the other. How these arrangements have affected the national system of innovation both in the developed and developing countries during the recent liberalisation phase of economic development? In this paper an attempt has been made to provide some plausible answers to this question. Input and output indicators have been used with a view to unravel the dramatic structural changes occurring both in the economic and innovation structure of the global economy. The internationalisation of R&D expenditure and its implications for revealed comparative advantage have been examined in order to understand the direction of change during the era of liberalisation. The suitable changes in the science and technology policy have been suggested to strengthen the national system of innovation for generating unique competitive advantage in the developing countries.National system of innovation; structural transformation; input and output measures of innovations; revealed competitive advantage; public policy; internationalisation of R&D; intellectual property rights

Innovations and Economic Growth in a Fast Changing Global Economy: Comparative Experience of Asian Countries

Innovations spur growth and economic transformation is widely acclaimed in economic growth literature. The transition in the national innovation system is the fundamental determinant of long-run economic growth and development. This is being reflected through the changes which are occurring in the economic structure of an economy as well as in the structure of the innovation system. Since the national economies are growing in the interdependent world, therefore national innovation system is continuously being influenced by the changes occurring in other parts of the world. Transformation of East Asian countries from imitation to reaching the frontier areas of innovations in a short span of time is a question that has been explored in this paper. Asian continent has emerged as the hub of innovative activities in the fast pace of globalization. Within Asian continent, there are wide differentials in the stage of economic development and transformation as well as in the national innovation systems. Two distinct patterns of economic transformation and systems of innovations which has evolved over time are-one, based on building strong industrial sector as an engine of innovations and growth; two, the engine of growth is the service sector and innovation system is heavily dependent on foreign capital. Recently, while recognizing the innovative capacity of some of the Asian countries, foreign R&D has devastated the boundaries of the Asian innovation system. Domestic agents of production have realized that there lies a dire need for the support of the state when innovations are being done on the frontiers of knowledge. Situational assessment surveys have also supported the view that Asian countries are fast approaching towards the frontiers of knowledge and innovations. Asian countries, themselves are competing to fast approach towards frontiers of knowledge and innovations so that newer areas of commercial activities can be explored and exploited in the global market. This paper while learning from East Asian innovation policies has also explored the role of national and international agencies in strengthening the national innovation systems of the less developed countries in the fast changing global economy.Technology policy; technological indicators; national innovation system; structural transformation; innovation institutions; economic growth; Asia

Globalization, national innovation systems and response of public policy

Abstract This paper attempts to set the significance of public innovation policies in contemporary developing countries in the context of the fast pace of globalization. It is fairly well established both in theory and practice that investment expenditure on innovation projects is likely to be low if left in the hands of private economic agents as they have a tendency to under-invest due to the ‘public good’ nature of the outcomes of R&D. However, policy in developing economies seldom takes seriously the importance of investment in innovation projects. This has not been without far-reaching implications for the growth and development performance of developing countries in general. The paper explores the role of international institutions and national governments in the task of strengthening national innovation systems through innovative interventions at national and international levels.globalization of technology role of state knowledge gaps global public good innovative strategy developing countries international institutions intellectual property rights innovation policy

Innovations, High-Tech Trade and Industrial Development: Theory, Evidence and Policy

innovations, growth, high-technology, Asia, government policy