Essay On Innovation And Innovation

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In addition to invention process, innovation is an important process for countries to level up their technology capacity. Innovation process is more complex and more organized compare to invention due to the fact that invention may accidently take place. On the contrary, innovation should be planned and needs more effort to enhance technology and research which are important to increase innovative activities in countries.
Fagerberg pointed out that innovation is helpful for low- income countries to catch up high income countries.
“ variables related to the development of the broader “innovation” system, such as educational efforts, the research infrastructure and innovative activity, are indeed important for whether a low-income country manages
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Diffusion of knowledge provides countries to increase knowledge and enables to use technologies although inventions took place in other parts of the world.
The research of Freeman and Soete specified the importance of science, technology and innovation (STI) and diffusion of knowledge. The empirical analysis in the paper of Freeman and Soete illustrated the link between diffusion of knowledge and development.
“STI indicators today play, in interaction with these shifts in global demand, a crucial role in national policy debates about science, technology and innovation. Many economists now believe that the largest part of world-wide growth and development over the last 10 years has been associated with an acceleration in the diffusion of technological change and world-wide access to codified knowledge. “ (Freeman & Soete, 2009, p. 587)

Nonetheless, diffusion of knowledge cannot be spread directly between countries across the world. Property rights, patents and other protections over inventions extend the time period of diffusion, Basu and Weil pointed out that diffusion can take place but it will not spill over suddenly all over the
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The specialization decision of countries would determine the way of how to involve in international trade. However, countries are not completely free to choose their development strategy. Some constraints do not permit to decide their development strategy what they want. Some factors should be consider by policy makers to determine national development policy.
``Today’s global economy does not single out a single best outcome, arrived at by international competition, in which each country serves the world’s best interests by producing just those goods that it can naturally turn out most efficiently. Rather, there are many possible outcomes that depend on what countries actually choose to do, what capabilities, natural or human-made, they actually develop. `` (Gomory, Ralph E., and William J. Baumol, 2000, p.
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