Policy brief: Import inputs and product innovation
Innovation in Low Income Countries has recently appeared on the agenda of policymakers and international development agencies
Abstract
The promotion of innovation in Low Income Countries (LICs) has recently appeared on the agenda of policymakers and international development agencies. Many agree that innovation is crucial in these countries, because it is fundamental for growth in order to catch up with middle and high income economies. Innovation in LICs may manifest itself differently, not via high profile technological and radical breakthroughs, usually measured by R&D expenditures or patents, but by more incremental adoption and adaptation or new combinations of existing technologies. The drivers for innovation, as identified in many studies, include the level of human capital and financial development in the economy as well as the role of industrial policies and nstitutions. A relatively new insight concerning LICs stresses the role of trade, and in particular the role of imported intermediate inputs, in promoting innovations in LICs. However, there is as yet only limited understanding of the links between imported inputs and innovation and productivity.
Citation
Tilburg University (2016) Policy brief: Import inputs and product innovation
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