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L3. Innovación and economic performance - Coggle Diagram
L3. Innovación and economic performance
“ Development ”
The Marx-Schumpeter model was not intended as a model o f industrial dynamics; its primary purpose was to explain long run economic
(2) that innovations, e.g. 'new combinations" o f existing knowledge and resources, open up possibilities for new business opportunities and future innovations, and in this way set the stage for continuing change.
(1) that technological competition is the major form of competition under capitalism
technological, organizational, and institutional
Posner (1961)
He explained the difference in economic growth between two countries, at different levels o f economic and technological development, as resulting from two sources:
Imitation, which tended to reduce it.
innovation, which enhanced the difference
Technology Gap
“ Like Alice and the Red Q ueen, the developed region has to keep running to stay in the sam e place” (K rugm an 1979: 262).
A weakness o f m uch o f this w ork w as that it w as based on a very stylized representation o f the global distribution o f innovation, in w hich inn ovation was assum ed to be concentrated in the developed w orld, m ainly in the U SA .
Arguably, this is also w hat one should expect from the Schumpeterian perspective, in w hich innovation is assumed to be a pervasive phenom enon.
Innovation has gradually become a more powerful factor in explaining differences across countries in economic growth.
What do we Know about Innovation ? And why do we need to learn more about?
The function o f innovation is to introduce novelty (variety) into the economic sphere. Hence, innovation is crucial for long-term economic growth.
Our understanding o f how knowledge— and innovation— operates at the organizational level remains fragmentary and further conceptual and applied research is needed.
The capacity to undertake is important for the ability to create and to benefit from innovation.
A central finding in the innovation literature is that a firm does not innovate in isolation, but depends on extensive interaction with its environment.
Various concepts have been introduced to enhance our understanding o f this phenomenon, most of them including the terms “ system” or (somewhat less ambitious) “ network”
Firms that succeed in innovation prosper, at the expense o f their less able competitors. Innovative countries and regions have higher productivity and income than the less innovative ones.