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

Building Technological Capability in the Less Developed Countries: The Role of a National System of Innovation

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

Science and Public Policy, 2022, vol. 49, issue 2, 179-190

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; diversification; resource curse; Kuwait (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Working Paper: 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:oup:scippl:v:49:y:2022:i:2:p:179-190.

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