Advertisement

Introduction to Innovation

  • Nobuaki MatsunagaEmail author
Chapter
Part of the Kobe University Monograph Series in Social Science Research book series (KUMSSSR)

Abstract

It is frequently claimed that innovation is the key to economic development. However, the term ‘innovation’ has been used for a variety of meanings by different researchers, let alone by ordinary people. We therefore start in this chapter to clarify ‘innovation’ by introducing theories of innovation (Schumpeter, Drucker and the Oslo Manual ), then illustrate innovations for developing countries (inclusive innovations, reverse innovations and learning innovations), and finally discuss current conditions of innovations in developing countries (the Innovation Paradox , and the concluding remarks). Innovation is critically important for developing economies as well as developed ones. The relevant types of innovations, however, are different between these economies: rich countries need to seek leading-edge innovations new to the world, while poor countries should learn existing technology to catch up with the best practice for rapid economic development. We call such ‘leniently’ defined innovations for poor countries ‘learning innovations’ and investigate their determinants and/or impacts on firm performance in Vietnam and Laos in the subsequent chapters. This chapter provides the foundation to better understand this book.

Keywords

Schumpeter Drucker The Oslo Manual Inclusive innovations Reverse innovations Learning innovations The innovation paradox Vietnam Laos 

References

  1. Almeida, R., & Fernandes, A. M. (2008). Openness and technological innovations in developing countries: Evidence from firm-level surveys. Journal of Development Studies, 44, 701–727.CrossRefGoogle Scholar
  2. Armbrustera, H., Bikfalvib, A., Kinkela, S., & Lay, G. (2008). Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys. Technovation, 28, 644–657.CrossRefGoogle Scholar
  3. Bloom, N., & Van Reenen, J. (2006). Measuring and explaining management practices across firms and countries. CEP Discussion Paper No. 716.Google Scholar
  4. Bloom, N., & Van Reenen, J. (2007). Measuring and explaining management practices across firms and countries. Quarterly Journal of Economics, 122(4), 1351–1408.CrossRefGoogle Scholar
  5. Bogliacino, F., Perani, G., Pianta, M., & Supino, S. (2012). Innovation and development: The evidence from innovation surveys. Latin American Business Review, 13, 219–261.CrossRefGoogle Scholar
  6. Cirera, X., & Maloney, W. F. (2017). The innovation paradox: Developing-country capabilities and the unrealized promise of technological catch-up. Washington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/28341 License: CC BY 3.0 IGO.CrossRefGoogle Scholar
  7. Drucker, P. F. (1985). Innovation and entrepreneurship: Practice and principles. London: Heinemann.Google Scholar
  8. Fagerberg, J., & Srholec, M. (2008). National innovation systems, capabilities and economic development. Research Policy, 37, 1417–1435.CrossRefGoogle Scholar
  9. Fagerberg, J., Srholec, M., & Verspagen, B. (2010). Innovation and economic development. In B. H. Hall & N. Rosenberg (Eds.), Handbook of the economics of innovation (Vol. 2, pp. 834–872). Amsterdam: North Holland.Google Scholar
  10. Falk, M. (2008). Effects of foreign ownership on innovation activities: Empirical evidence for twelve european countries. National Institute Economic Review, 204, 85–97.Google Scholar
  11. Foster, C., & Heeks, R. (2013). Conceptualising inclusive innovation: Modifying systems of innovation frameworks to understand diffusion of new technology to low-income consumers. European Journal of Development Research, 25(3), 335–355.CrossRefGoogle Scholar
  12. Freeman, C. (1987). Technology policy and economic performance: Lessons from Japan. London: Pinter.Google Scholar
  13. Fressoli, M., Arond, E., Abrol, D., Smith, A., Ely, A., & Dias, R. (2014). When grassroots innovation movements encounter mainstream institutions: Implications for models of inclusive innovation. Innovation and Development, 4(2), 277–292.CrossRefGoogle Scholar
  14. Gerschenkron, A. (1962). Economic backwardness in historical perspective: A book of essays. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
  15. Goncalves, E., Lemos, M. B., & De Negri, J. A. (2007). Drivers of technological innovation in Argentina and Brazil. In J. A. De Negri & L. M. Turchi (Eds.), Technological innovation in Brazilian and Argentine firms (pp. 177–202). Institute for Applied Economic Research: Brasilia.Google Scholar
  16. Govindarajan, V., & Chris, T. (2012). Reverse innovation: Create far from home, win everywhere. Boston: Harvard Business Review Press.CrossRefGoogle Scholar
  17. Griffith, R., Redding, S., & Van Reenen, J. (2004). Mapping the two faces of R&D: Productivity growth in a panel of OECD industries. Review of Economics and Statistics, 86(4), 883–895.CrossRefGoogle Scholar
  18. Hamilton, A. (1791). Report on the subject of manufactures.Google Scholar
  19. Heeks, R., Foster, C., & Nugroho, Y. (2014). New models of inclusive innovation for development. Innovation and Development, 4(2), 175–185.CrossRefGoogle Scholar
  20. Humphrey. (2004). Upgrading in global value chains. Working Paper No. 28, Policy Integration Department, World Commission on the Social Dimension of Globalization, International Labour Office, Geneva.Google Scholar
  21. Huq, M. (2016). Is the choice of technique debate still relevant? In J. Weiss & M. Tribe (Eds.), Routledge handbook of industry and development. London and New York: Routledge, Taylor and Francis Group.Google Scholar
  22. Jaramillo, H., Lugones, G., & Salazar, M. (2001). Bogota manual: Standardisation of indicators of technological innovation in Latin American and Caribbean countries. RICYT/OAS/ CYTED/COLCIENCIAS/OCYT.Google Scholar
  23. Kraay, A. (2006). When is growth pro-poor? Evidence from a panel of countries. Journal of Development Economics, 80, 198–227.CrossRefGoogle Scholar
  24. Kremer, M. (1993). The o-ring theory of economic development. The Quarterly Journal of Economics, 108(3), 551–575.CrossRefGoogle Scholar
  25. List, F. (1841). Das nationale system der politischen oekonomie (S. S. Lloyd, Trans. 1885) [The national system of political economy].Google Scholar
  26. Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 2–42.CrossRefGoogle Scholar
  27. Meier, G. M. (1995). Leading issues in economic development (6th ed.). Oxford, London: Oxford University Press. By permission of Oxford University Press, USA.Google Scholar
  28. OECD. (2013). Innovation and inclusive development, conference discussion report. Paris: OECD Publishing.Google Scholar
  29. OECD. (2015). Innovation policies for inclusive growth. Paris: OECD Publishing.Google Scholar
  30. OECD/Eurostat. (2005). Oslo manual: Guidelines for collecting and interpreting innovation data (3rd ed.). Paris: OECD Publishing.Google Scholar
  31. Papaioannou, T. (2014). How inclusive can innovation and development be in the twenty-first century? Innovation and Development, 4(2), 187–202.CrossRefGoogle Scholar
  32. Prendergast, R. (2016). Technological learning in developing countries. In J. Weiss & M. Tribe (Eds.), Routledge handbook of industry and development (pp. 297–319). London and New York: Routledge, Taylor and Francis Group.Google Scholar
  33. Romer, P. (1986). Increasing returns and long-run growth. The Journal of Political Economy, 94(5), 1002–1037.CrossRefGoogle Scholar
  34. Schumacher, E. F. (1973). Small is beautiful: A study of economics as if people mattered. London: Blond & Briggs.Google Scholar
  35. Schumpeter, J. A. (1934). The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle [Originally published in 1912: Theorie der Wirtchaftlichen Entwicklung] (2nd ed.). München, Leipzig: Duncker & Humblot. By permission of Oxford University Press, USA.Google Scholar
  36. Schumpeter, J. A. (1950). Capitalism, socialism, and democracy (3rd ed.). New York: Harper & Brothers.Google Scholar
  37. Srholec, M. (2009). Does foreign ownership facilitate cooperation on innovation? Firm-level evidence from the enlarged European Union. European Journal of Development Research, 21, 47–62.CrossRefGoogle Scholar
  38. Stiglitz, J. E., & Greenwald, B. C. (2014). Creating a learning society. New York: Columbia University Press.Google Scholar
  39. UNCTAD. (2007). The Least developed countries report 2007: Technological learning and innovation for development. New York: United Nations.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Kobe UniversityKobeJapan

Personalised recommendations