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6 - Innovation, Credit Constraints, and National Banking Systems

A Comparison of Developing Nations*

from Part II - Innovation in Developing and Emerging Countries

Published online by Cambridge University Press:  10 August 2018

By
Edward Lorenz  and
Sophie Pommet
Edited by
Jorge Niosi
Jorge Niosi
Affiliation:
Université du Québec, Montréal
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Summary

The importance of innovation and technical change for economic development has been investigated in a large range of literature, both theoretical and empirical. One key finding of this research is that it is important to distinguish between innovations in the sense of cutting edge developments at the technological frontier and the incremental processes associated with the adoption and diffusion of existing technologies. Kim (1997), in his now classic study on the role of technological catch-up in Korea’s rapid economic growth from the 1960s, refers to “innovation through imitation,” and Lee (2005), in his analysis of the opportunities and barriers to technological catch-up, also emphasizes the importance of imitation in the early so-called OEM (own equipment manufacturing) stage of the process.

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Innovation Systems, Policy and Management , pp. 178 - 216
Publisher: Cambridge University Press
Print publication year: 2018

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