From Imitation to Innovation : Public Policy for Industrial Transformation

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.

Bibliographic Details

Main Authors:	Agénor, Pierre-Richard, Dinh, Hinh T.
Language:	English en_US
Published:	World Bank, Washington, DC 2013-05
Subjects:	ADVERSE EFFECT, AGRICULTURE, BENCHMARK, BUSINESS CYCLE, CAPABILITIES, COLLATERAL, COMMERCE, COMMODITY, COMMODITY PRICES, COMPETITIVENESS, CONSUMPTION EXPENDITURE, DEADWEIGHT, DEADWEIGHT LOSS, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DIMINISHING RETURNS, DISCOUNTED VALUE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC HISTORY, ECONOMIES OF SCALE, ELECTRICITY, EMPLOYMENT, EMPLOYMENT OPPORTUNITIES, ENTERPRISE SURVEY, ENTRY COST, EXPORT MARKET, EXPORT OPPORTUNITIES, EXPORTS, EXTERNALITIES, EXTERNALITY, FIRM PERFORMANCE, FOREIGN INVESTMENT, FREE PRESS, GDP, GLOBALIZATION, GOVERNMENT INTERVENTIONS, GOVERNMENT POLICIES, GROSS DOMESTIC PRODUCT, GROWTH RATE, GROWTH STRATEGY, HUMAN CAPITAL, INCOME, INCOME GROWTH, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDUSTRIAL DEVELOPMENT, INDUSTRIAL REVOLUTION, INDUSTRIAL STRUCTURE, INDUSTRIALIZATION, INEXPERIENCED WORKERS, INFORMATION TECHNOLOGIES, INNOVATION, INNOVATIONS, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL ECONOMICS, JOBS, KNOWLEDGE BASE, LABOR COST, LABOR COST ADVANTAGE, LABOR DEMAND, LABOR FORCE, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR SUPPLY, LABOUR, LEVIES, LICENSE, LICENSE FEE, LIVING STANDARDS, LOCAL FIRMS, MACROECONOMICS, MANUFACTURING, MANUFACTURING INDUSTRIES, MARGINAL PRODUCT, MARGINAL REVENUE, MARKETING, NATURAL RESOURCES, NETWORKS, OPPORTUNITY COST, OUTPUTS, PATENTS, PIRACY, POLITICAL ECONOMY, PRIVATE CAPITAL, PRIVATE CAPITAL STOCK, PRIVATE INVESTMENT, PRODUCTION COSTS, PRODUCTION PROCESS, PRODUCTIVITY, PRODUCTIVITY GAINS, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC INVESTMENT, RENTS, RESULT, RESULTS, RETURN, RURAL WORKERS, SEARCH, SKILL REQUIREMENTS, SKILLED LABOR, SKILLED WORKFORCE, STOCKS, STRUCTURAL CHANGE, TAX, TECHNOLOGICAL INNOVATION, TELECOMMUNICATIONS, TOTAL FACTOR PRODUCTIVITY, TRAINING COST, TRAINING COSTS, TRAINING PERIOD, UNSKILLED LABOR, UNSKILLED WORKERS, VOCATIONAL TRAINING, VOCATIONAL TRAINING PROGRAMS, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2013/04/17873909/imitation-innovation-public-policy-industrial-transformation https://hdl.handle.net/10986/17024
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