Tilman Altenburg, Bonn
Opportunities for developing countries in
global innovation-based competition.
Pages 66 - 81
Innovation becomes increasingly important for global competition.
Innovation is a cumulative and interactive process that builds on externalities,
thus enhancing spatial concentration and discriminating against latecomers.
Yet technological upgrading is a gradual process, and latecomers may specialize
on factor cost advantages and subsequently increase their knowledge content.
Success mainly depends on socio-political capabilities to govern technological
change.
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