Social Absorption Capability, National Innovation Systems and Economic Development

Carl J. Dahlman and Richard Nelson

Chapter 5 in Social Capability and Long-Term Economic Growth, 1995, pp 82-122 from Palgrave Macmillan

Abstract: Abstract We will argue that the capabilities that a country that lags technologically needs to absorb the technology of more advanced economies have much in common with the capabilities needed to create new technology. We will argue that investing to develop those capabilities is an important part of the explanation for the rapid economic development of the most dynamic developing economies. However, we will examine this in the context of two other factors that appear to be an important part of the explanation for successful economic performance. These are the macroenvironment, mostly as reflected by the level of investment in GDP, and the incentive regime, in particular the extent to which price signals reflect world prices and there is competitive pressure and the absence of restrictive government regulation which may inhibit the activities of the productive sector. We also examine the interplay among these factors, as well as between them and the national innovation systems of a dozen developing countries as part of the explanation of their different economic performance. The heart of this chapter will draw from a large comparative study of national innovation systems in which both authors were involved, and also from a set of studies done under the auspices of the World Bank.

Keywords: Foreign Direct Investment; Gross Domestic Product; Economic Performance; Capital Good; Productive Sector (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (37)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-13512-7_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349135127

DOI: 10.1007/978-1-349-13512-7_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().