Systems of innovation, diversification, and the R&D trap: a case study of Kuwait

Husam Arman, Simona Iammarino, J. Eduardo Ibarra-Olivo and Neil Lee

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The relationship between research and development (R&D) investment and economic development is well established. Yet, at a global scale, the resource-rich countries of the Gulf Cooperation Council are consistent outliers in this relationship, combining rich-world national incomes with R&D expenditure of developing countries. This paper uses a case study on Kuwait to illustrate a particular form of developmental trap, a version of the resource curse, which makes it irrational for private business firms to invest in R&D and innovation. Based on an analysis of the literature and secondary data, focus groups, and an original survey of large manufacturing firms, we argue that a narrow focus on R&D-led diversification of economic activity ignores the systemic problems faced by Kuwait and, particularly, the unsuitable supply of skills and capabilities provided by the national education and training system.

Keywords: R&D; innovation systems; diversifiication; resource curse; Kuwait; Kuwait Programme Academic Collaboration Grant from the LSE’s Middle East Centre (search for similar items in EconPapers)
JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2022-04-16
New Economics Papers: this item is included in nep-ara, nep-dem, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Science and Public Policy, 16, April, 2022, 49(2), pp. 179 – 190. ISSN: 0302-3427

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Journal Article: Systems of innovation, diversification, and the R&D trap: A case study of Kuwait (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:112209

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