A Technology Acquisition Model: The Role of Learning and Innovation

Abstract

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