Ideas and Innovation in East Asia

The generation, diffusion, absorption and application of new technology, knowledge or ideas are crucial drivers of development. This paper surveys the diverse approaches to innovation adopted by East Asian economies, the problems faced and outcomes achieved, as well as possible policy lessons. Knowledge flows from advanced countries remain the primary source of new ideas in developing economies. The authors evaluate the role of three main channels for knowledge flows to East Asia - international trade, acquisition of disembodied knowledge and foreign direct investment. The paper then looks at the exceptionally fast growth in domestic innovation efforts in Korea, Taiwan (China), Singapore and China, drawing on information about R&D as well as original analysis of patent and patent citation data. Citation analysis shows that while East Asian innovations continue to draw heavily on knowledge flows from the US and Japan, citations to the same or to other East Asian economies are quickly rising, indicating the emergence of national and regional knowledge stocks as a foundation for innovation. A last section pulls together findings about policies and institutions to foster innovation, under three heads: the overall business environment for innovation (macroeconomic stability, financial development, openness, competition, intellectual property rights and the quality of communications infrastructure), human capital development, and government fiscal support for innovation.

Bibliographic Details

Main Authors:	Brahmbhatt, Milan, Hu, Albert
Language:	English
Published:	World Bank, Washington, DC 2007-11
Subjects:	ADVERSE IMPACT, ASSEMBLERS, AUTOMOBILE, BANK LOANS, BARRIERS TO ENTRY, BASIC, BUSINESS ENVIRONMENT, BUSINESS OPERATIONS, BUSINESS SECTOR, BUYER, BUYERS, CAPABILITIES, CAPABILITY, CAPITAL INVESTMENT, COMMERCIAL BANK, COMMODITY, COMMUNICATIONS INFRASTRUCTURE, COMMUNITIES, COMPARATIVE ADVANTAGE, COMPETITIVENESS, COMPUTER HARDWARE, COMPUTERS, CONSUMERS, COPYING, CORPORATE PROFITS, CUSTOMER RELATIONSHIPS, DISTRIBUTION CHANNELS, DRAM, DVD, ECONOMIC DEVELOPMENT, ECONOMIC VALUE, ECONOMICS, ECONOMIES OF SCALE, ELASTICITY, ELECTRONIC BUSINESS, ELECTRONICS, ELECTRONICS INDUSTRY, ELECTRONICS TECHNOLOGY, ENGINEERING, ENVIRONMENT FOR INNOVATION, EQUIPMENT, EXCHANGE RATES, EXCLUDABILITY, EXPORT MARKETS, EXPORTS, EXTERNALITIES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FIXED COSTS, FLASH, FLASH MEMORIES, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN TRADE, GDP, GDP PER CAPITA, GLOBAL COMPETITIVENESS, GLOBAL KNOWLEDGE, GLOBAL MARKET, GLOBAL MARKETS, GOVERNMENT FUNDING, GOVERNMENT SUBSIDIES, GROWTH PATHS, GROWTH THEORY, HIGH TECHNOLOGY, HIGH TECHNOLOGY PRODUCTS, HUMAN CAPITAL, ICT, INCOME, INCOME LEVELS, INDEXES, INDIGENOUS KNOWLEDGE, INNOVATION, INNOVATION SYSTEMS, INNOVATIONS, INSPECTION, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY LAW, INTELLECTUAL PROPERTY PROTECTION, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL TRADE, INVENTION, INVENTIONS, INVENTORS, INVENTORY, JOINT VENTURES, JOURNALS, KNOW-HOW, KNOWLEDGE ASSETS, KNOWLEDGE CREATION, KNOWLEDGE PRODUCTION, KNOWLEDGE STOCKS, KNOWLEDGE TRANSFER, LATIN AMERICAN, LCD, LICENSE, LICENSE AGREEMENT, LICENSES, LICENSING, LIVING STANDARDS, LOCALIZATION, LOOPS, LOW INCOME, MACROECONOMIC STABILITY, MANUFACTURING, MANUFACTURING INDUSTRIES, MARKET SHARE, MARKET SHARES, MARKETING, MOBILE PHONES, MONITORS, MONOPOLY, NATURAL RESOURCES, NETWORKING, NETWORKS, NEW TECHNOLOGIES, NEW TECHNOLOGY, OUTSOURCING, PACIFIC REGION, PATENTS, PER CAPITA INCOME, PRIVATE INVESTMENT, PRIVATE PROPERTY, PRIVATE SECTOR, PRODUCT SPECIFICATIONS, PRODUCTION COSTS, PRODUCTION FUNCTIONS, PRODUCTION PROCESSES, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROFIT MARGINS, PROTOCOLS, PUBLIC GOOD, PUBLIC GOODS, PURCHASING POWER, PURE PLAY, R&D, REAL INTEREST RATE, RESULT, RESULTS, SCIENTISTS, SEARCH, SEMICONDUCTORS, SITES, TACIT KNOWLEDGE, TAX INCENTIVES, TECHNICAL KNOWLEDGE, TECHNICAL SUPPORT, TECHNOLOGICAL CAPABILITIES, TECHNOLOGICAL DEVELOPMENT, TECHNOLOGICAL INNOVATION, TECHNOLOGICAL LEARNING, TECHNOLOGY LICENSES, TECHNOLOGY LICENSING, TECHNOLOGY SPILLOVERS, TECHNOLOGY TRANSFER, TECHNOLOGY TRANSFERS, TELECOM, TELEPHONE, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, UNIVERSITIES, USER, USES, WAGES, WEB,
Online Access:	http://documents.worldbank.org/curated/en/2007/11/8705843/ideas-innovation-east-asia https://hdl.handle.net/10986/7596
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