@article{46654,
      recid = {46654},
      author = {Fu, Xiaolan, and Shi, Liu,},
      title = {Direction of Innovation in Developing Countries and its  Driving Forces : Economic Research  Working Paper No. 69},
      pages = {41 pages ;},
      abstract = {Innovation is a major driving force of long-term economic  growth and sustainable development. Direction of innovation  matters because technical change is not neutral and hence  bears significant social, economic and environmental  development implications. This paper contributes to the  literature through a systematic examination of the  direction of innovation in developing and emerging  economies and its driving forces. It shows that innovation  in the global South exhibits a vibrant and diverse  landscape when we do not confine ourselves with traditional  research and innovation indicators. While emerging  economies are accelerating their pace in inventive  activities in fields such as ICTs, biotech and engineering,  low-income countries (LICs) are also found to be active in  learning-based, incremental “under-the-radar innovations”  (URIs). These URIs that are introduced through  international technology transfer and indigenous innovative  efforts. Indigenous sources of URIs play a primary role in  LICs, contributed by localised learning-by-doing, close  interaction with customers and embeddedness in regional  production networks and clusters. However, insufficient  role of the state, a low science and technology intensity  and a lack of university-industry linkage limit the  potential of URIs. International technology transfer is  another important driver of technical change in developing  countries. However, its strengthen varies across countries  due to differences in host country policy, absorptive  capacity, and the type of foreign economic engagement that  they have as well as the inappropriateness of transferred  foreign technologies mostly from Global North. Given the  status of direction of innovation and its driving forces in  developing countries, this report argues that the unfolding  4th industrial revolution poses both challenges and  opportunities to LICs. Policy implications are discussed.},
      url = {http://tind.wipo.int/record/46654},
      doi = {https://doi.org/10.34667/tind.46654},
}