Book contents
- Frontmatter
- Contents
- List of Tables, Figures and Boxes
- Foreword
- Preface
- Acknowledgements
- List of Abbreviations
- 1 Introduction: Framework of Analysis
- 2 Context and Conditions of International Competition
- 3 Alternative Theories of Competitiveness
- 4 Firm Strategy and New Industrial Organization
- 5 External Economies: Organization of Interfirm Relations
- 6 Reputation and Trust: A Firm's Relations with Stakeholders and Others
- 7 Innovation and Upgrading
- 8 Government Policies
- 9 The Experiences of China and Mexico
- 10 Summary and Concluding Remarks
- Appendices
- Bibliography
- Index
7 - Innovation and Upgrading
Published online by Cambridge University Press: 05 February 2013
- Frontmatter
- Contents
- List of Tables, Figures and Boxes
- Foreword
- Preface
- Acknowledgements
- List of Abbreviations
- 1 Introduction: Framework of Analysis
- 2 Context and Conditions of International Competition
- 3 Alternative Theories of Competitiveness
- 4 Firm Strategy and New Industrial Organization
- 5 External Economies: Organization of Interfirm Relations
- 6 Reputation and Trust: A Firm's Relations with Stakeholders and Others
- 7 Innovation and Upgrading
- 8 Government Policies
- 9 The Experiences of China and Mexico
- 10 Summary and Concluding Remarks
- Appendices
- Bibliography
- Index
Summary
[T]he real opposition to techno-nationalism is not, as so often suggested techno-globalism but rather techno-liberalism. It is not, therefore, no surprise that the literature on national systems generally advocate a stronger role of government to foster innovation.
(Archibugi and Michie 1997, 134)The real competitive problem is laggards versus challengers, incumbents versus innovators, inertial and the imitative versus the imaginative.
(Hamel and Prahalad 1994, 17)Introduction
As explained in Chapter 3, it is widely agreed that competitiveness based on low factor cost is short-lived; and the competitive advantage of a nation arises, in the long run, from firm-level capabilities to innovate. Innovation is required, inter alia, to upgrade firms and industrial activities in order to achieve and maintain competitiveness. Further, there is a close correlation between innovation and development (Fagerberg et al. 2009, 40–42). As we have mentioned in the introductory chapter, firms are the centrepiece of economic activities of a country. Upgrading and innovation are not an exception to this general statement; they have to be carried out by the firms, and any related government support and policies should eventually be targeted at the firms.
The literature on innovation is geared basically to the case of established firms of advanced industrial countries. Newcomer firms of developing countries, particularly countries which are at the early stages of development, are not at the same stage of industrialization. Hence innovation takes on a different meaning in the context of these countries. Nevertheless, it is important to explain how established firms in developed countries innovate for two reasons.
- Type
- Chapter
- Information
- Competitiveness and DevelopmentMyth and Realities, pp. 145 - 174Publisher: Anthem PressPrint publication year: 2012