Do indigenous or foreign innovation efforts matter for the middle-income economies transition to the higher-income rank? An empirical evidence

Bibliographic Data

ID13040649
AuthorsHuong Thu Ngo (0000-0001-7468-604X, Waseda University, corresponding author)
Year2022
Volume13
Issue3
Pages621-638
Publication date2022-08-09
Open AccessNo
TypeARTICLE
VenueInnovation and Development (JOURNAL)
Journal identifiersISSN: 2157-9318 • E-ISSN: 2157-930X
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/2157930x.2022.2110663
OpenAlexW4290779440
LanguageEN
Citations received1
References cited41

This study analyzes whether indigenous or foreign innovation efforts are more important for the transition of middle-income economies to the higher-income rank. Data on 61 countries in both lower middle-income and upper middle-income categories between 1980 and 2018 are used. Discrete-time hazard models are employed. The unobserved heterogeneity is controlled in the estimations to improve the continuous-time hazard model applied in existing studies on innovation at the national level. Results show that foreign sources of innovation measured by nonresident patents and international R&D spillovers through the FDI channel are more important for the lower middle-income group to move up the income ladder. For the upper middle-income group, domestic source of innovation measured by R&D capital stock is the most important, followed by foreign innovation diffused through the import channel. Institutional quality supports the upper middle-income economies to obtain the high-income rank

Demographic economics · Economics · Geography · Income distribution · Indigenous · Middle East · Middle income trap · Stock (firearms · Economic and Technological Innovation · Economic Growth and Productivity · Fiscal Policy and Economic Growth

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