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Innovation, Learning, and Technological Dynamism of Developing Countries

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Innovation, Learning, and Technological Dynamism of Developing Countries United Nations University Press is the publishing arm of the United Na- tions University. UNU Press publishes scholarly and policy-oriented books and periodicals on the issues facing the United Nations and its people and member states, with particular emphasis upon international, regional, and trans-boundary policies. The United Nations University is an organ of the United Nations es- tablished by the General Assembly in 1972 to be an international com- munity of scholars engaged in research, advanced training, and the dis- semination of knowledge related to the pressing global problems of human survival, development, and welfare. Its activities focus mainly on the areas of peace and governance, environment and sustainable devel- opment, and science and technology in relation to human welfare. The University operates through a worldwide network of research and post- graduate training centres, with its planning and coordinating headquar- ters in Tokyo. Innovation, learning, and technological dynamism of developing countries Innovation, learning, and technological dynamism of developing countries Edited by Sunil Mani and Henny Romijn United Nations a University Press TOKYO u NEW YORK u PARIS ( United Nations University, 2004 The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations University. United Nations University Press United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo, 150-8925, Japan Tel: þ81-3-3499-2811 Fax: þ81-3-3406-7345 E-mail: [email protected] general enquiries: [email protected] http://www.unu.edu United Nations University Office at the United Nations, New York 2 United Nations Plaza, Room DC2-2062, New York, NY 10017, USA Tel: þ1-212-963-6387 Fax: þ1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University. Cover design by Sese-Paul Design Printed in Hong Kong UNUP-1097 ISBN 92-808-1097-9 Library of Congress Cataloging-in-Publication Data Innovation, learning, and technological dynamism of developing countries / edited by Sunil Mani and Henny Romijn. p. cm. Includes bibliographical references and index. ISBN 9280810979 (pbk.) 1. Technological innovations—Developing countries. I. Mani, Sunil. II.Romijn,Henny. T173.8.I552 2004 3380.0640091724–dc22 2004007422 Contents Acknowledgements. ................................................. vii Contributors........................................................... viii Listoffigures.......................................................... ix Listoftables........................................................... xi Abbreviations.......................................................... xiii Preface................................................................. xvi 1 Introduction . ........................................................ 1 Sunil Mani and Henny Romijn 2 Exports of high technology products from developing countries: Arethefiguresrealoraretheystatisticalartefacts?.............. 12 Sunil Mani 3 Development strategies and innovation policies in globalisation: ThecaseofSingapore.............................................. 48 Alexander Ebner v vi CONTENTS 4 Evolution of the civil aircraft manufacturing system of innovation: A case study in Brazil . ............................... 77 Rosane Argou Marques 5 The political economy of technology policy: The automotive sector in Brazil (1950–2000). ...................................... 107 Effie Kesidou 6 Technological learning in small-enterprise clusters: Conceptual frameworkandpolicyimplications................................ 135 Marjolein C. J. Canie¨ls and Henny Romijn 7 The contribution of skilled workers in the diffusion of knowledge in the Philippines ...................................... 158 Niels Beerepoot 8 Understanding growth dynamism and its constraints in high technology clusters in developing countries: A study of Bangalore,southernIndia......................................... 178 M. Vijayabaskar and Girija Krishnaswamy 9 Culture, innovation, and economic development: The case of the South Indian ICT clusters . ............................... 202 Florian Arun Taeube Index.................................................................. 229 Acknowledgements The papers included in this book were initially presented at a conference at the United Nations University–Institute for New Technologies (UNU- INTECH) at Maastricht. The Dutch Research School for Resource Studies for Development (CERES) and the European Association for Develop- ment Research and Training Institutes (EADI) both sponsored the con- ference. Our grateful thanks go to these two organisations for their support and encouragement throughout the course of this project. A number of our colleagues offered comments and criticisms on the papers, especially when they were presented at the above conference. We are par- ticularly grateful for suggestions, comments, or other forms of assistance received from Louk de la Rive Box, Lynn Mytelka, Peter Knorringa, Keith Smith, and Bart Verspagen. Further discussions with colleagues at the working group on Science and Technology for Development of the EADI and the comments made by the two anonymous referees have greatly enhanced the quality of the manuscript. Eveline in de Braek and Marijke Roolvink-Batty, our secretaries at INTECH, deserve special thanks for their timely help in getting the manuscript ready for publication. Finally both of us would like to thank our respective home institutions, UNU-INTECH and the Eindhoven Centre for Innovation Studies at Eindhoven University of Technology, for facilitating this project. Sunil Mani Henny Romijn vii Contributors Niels Beerepoot,AGIDS,University Sunil Mani, United Nations of Amsterdam, Amsterdam, University/Institute for New the Netherlands. Technologies, Maastricht, the Netherlands. Marjolein Canie¨ls,TheOpen Rosane Argou Marques, Science and University of the Netherlands, Technology Policy Research, Heerlen, the Netherlands. University of Sussex, Sussex, UK. Alexander Ebner,Universityof Henny Romijn, Eindhoven Centre for Erfurt, Erfurt, Germany. Innovation Studies, Technische Universiteit Eindhoven, Eindhoven, Effie Kesidou, Eindhoven Centre for the Netherlands. Innovation Studies, Technische Florian Arun Taeube, Johann Universiteit Eindhoven, Eindhoven, Wolfgang Goethe-University, the Netherlands. Frankfurt, Germany. Girija Krishnaswamy,Australian M. Vijayabaskar, Madras Institute of Catholic University, Sydney, Development Studies, Chennai, Australia. India. viii List of figures 1.1 Bookstructure.................................................. 3 2.1 Share of developing countries in world exports of manufactured products . ....................................... 14 2.2 Ratio of World Bank estimates to INTECH estimates. 20 2.3 Trends in high technology content of world exports of manufactured products . ....................................... 23 2.4 The increasing share of developing countries in total world exportsofhightechexports,1988–1998...................... 24 2.5 The catching up of developing countries with respect to hightechexports(attheaggregatelevel)..................... 26 2.6 The catching up of developing countries by product level . 27 2.7 The catching up of specific countries with the United States............................................................ 28 2.8 Competitiveness of developed and developing countries in hightechexports ............................................... 29 2.9 Net export ratio of developed and developing countries, 1988–1998....................................................... 30 2.10 The top countries in terms of average net export ratio, 1968–1998....................................................... 30 2.11 US patent activity by inventor country and grant year, 1985–1998....................................................... 36 2.12 Trends in R&D expenditure and in research intensity in Singapore ....................................................... 42 ix x FIGURES 4.1 Knowledge and production systems in the civil aircraft manufacturingsystemofinnovation.......................... 83 4.2 Knowledge and production systems in the Brazilian civil aircraftmanufacturingsystemofinnovation................. 96 5.1 Total vehicle production and exports of the automotive industry......................................................... 127 5.2 Totalrevenueofautopartsmanufacturers .................. 128 5.3 Auto parts industry output: Percentage distribution by destination..................................................... 129 6.1 Integratingmacrowithmeso.................................. 138 9.1 RegionaldistributionofintervieweesinIndia............... 217 9.2 State-wise distribution of interviewees in South and West India............................................................ 217 9.3 Social background of interviewees in India . ................. 218 9.4 EthnicityofinterviewpartnersinIndia...................... 218 List of tables 2.1 Structure of exports of developing countries, 1988 and 1998 . 15 2.2 Value of exports of manufactured products from developing countries, 1991–1997 . ....................................... 16 2.3 HightechproductslistbytheOECD......................... 19 2.4 Theleadinghightechexportersintheworld,1997 .......... 21 2.5 Comparison of World Bank and INTECH datasets . 22 2.6 Concentration in exports of high tech products. ........... 25 2.7 Ranking of developed and developing countries according tohightechexportintensity..................................
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