Domestic Industrial Learning Externalities of Innovation and Imitation: Informing Industrial Policy with Cross-country Evidence

King Yoong Lim and A Raza

Economic Issues Journal Articles, 2020, vol. 25, issue 1, 61-85

Abstract: This study estimates four different domestic industrial learning externalities of and between imitation and innovation. Using highly disaggregated industrial data as measures for product varieties, we test for the relationship between imitation and innovation based on four theoretically informed, policy-relevant hypotheses. In sum, we document robust and statistically significant stepping-stone effect of imitation on innovation, and a reverse positive creative-imitation effect from innovation to imitation. Likewise, we also estimate positive within-sector learning effects for both innovation and imitation. These empirical findings have significant implications for industrial policies designed to foster innovation-driven growth, especially in middle-income and developing economies.

Keywords: Industrialisation; Industrial Policies; Imitation; Innovation (search for similar items in EconPapers)
JEL-codes: O11 O40 O47 (search for similar items in EconPapers)
Date: 2020
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Related works:
Working Paper: Variety Expansion Redux: A Cross-Country Estimation of the Spillover Effects of Innovation and Imitation (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eis:articl:120lim

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