Template-type: ReDIF-Paper 1.0
Author-Name: Wamae, Watu
Author-Email: watu.wamae@gmail.com
Author-Workplace-Name: CEDERS, Faculté des Sciences Economique et Gestion, Université de la Méditerranée 
Title: Creating the Capacity to Benefit from Technological Change in Developing Countries
Abstract: What really makes an economy competitive? This paper reviews and
	 discusses how the capacity to generate, exploit and diffuse new
	 knowledge is key in enabling countries to capitalise on challenges
	 brought about by rapid technology-driven transformations rather than
	 succumb to their adverse effects. In particular, we look at the
	 importance of new knowledge emanating from both domestic and foreign
	 sources in the innovation process in view of the contention that
	 "international technology transfer" is critical for growth in developing
	 countries. We find that there is a tight link between high rates of
	 technology acquisition and high investment ratios, and that the
	 absorptive capacity is a sine qua non of foreign technology benefits. 
Classification-JEL: C49, O11, O38
Keywords: absorptive capacity, knowledge, developing countries, 
	 systems of innovation 
Series: UNU-MERIT Working Papers
Creation-Date: 2006
Number: 021
File-URL: http://www.merit.unu.edu/publications/wppdf/2006/wp2006-021.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2006021