From Imitation to Innovation: Public Policy for Industrial Transformation

Pierre-Richard Agénor and Hinh Dinh

World Bank - Economic Premise, 2013, issue 115, 1-8

Abstract: What role does public policy play in helping countries accelerate the industrialization process? This note aims to answer this question by applying a framework to analyze the process of transitioning from imitation to innovation. Based on a dynamic model of growth, simulations suggest that learning through imitation may enable firms to improve productivity significantly in a first stage, and that this may eventually benefit innovation activity as well. The model also shows how failure to switch from imitation as the main source of productivity growth to broad-based, homegrown innovation could lead to the “middle-income trap” that has befallen some countries.

JEL-codes: O0 O2 O4 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Working Paper: From Imitation to Innovation: Public Policy for Industrial Transformation (2013)
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