T he middle income trap requires strategies for building technological capabilities to overcome it. This study focuses on the development patterns of two types of technological capabilities: implementation and concept design. A conceptual approach developed from evolutionary economics and innovation systems literature is constructed to distinguish between the types of technological capabilities and how they develop. The approach is mainly applied to the cases of Korea's development and it highlights the differences in developing implementation and concept design capabilities.The findings of the study emphasize the need for the development of concept design capabilities, which requires (i) setting challenging targets, (ii) developing human resources, infrastructure and knowledge accumulation, and (iii) using an incremental process of trial-and-error and course correction. More broadly, sociocultural institutions may need to be changed to accommodate higher risk-taking but also require different approaches to change. The study extends the concept of technological capabilities by emphasizing the concept design capability that requires trial-and-error beyond R&D activities.

Knowledge has replaced labor as the key factor for productivity growth in innovation discourse. The Knowledge Spillover Theory of Entrepreneurship (KSTE) provides the theoretical foundation to bridge the gap between knowledge and productivity growth. The way regional knowledge actually contributes to productivity growth requires a theoretical explanation because knowledge capability is an indirect and intangible input for regional productivity growth. Previous research has shown that entrepreneurship alone is insufficient to drive productivity improvements. We examine how knowledge capabilities lead to meaningful growth outcomes of new firms in a region. This study examines the determinants of productivity growth by analyzing the factors of entrepreneurship and knowledge capabilities at the regional level, especially considering the moderating effect of entrepreneurship between knowledge and regional growth; by comparing different dimensions of local knowledge capabilities; and by aggregating the contribution of knowledge capabilities and entrepreneurship to productivity growth at the regional level. The empirical analysis is performed on Italian NUTS-3 regions by utilizing an integrated data set combining patent data from the EPO PATSTAT database, and regional data from Eurostat regional statistics. This study makes two main contributions to the KSTE literature by linking knowledge, entrepreneurship, and regional growth and by providing empirical results on different aspects of regional knowledge capability. Our findings identify which types of local knowledge capabilities are more important and how related innovative activity interacts with entrepreneurial activity, elucidating the mechanisms by which knowledge affects labor productivity through entrepreneurship.

No abstract

Africa has not invested enough in its healthcare system, and China has been investing in and financing much of Africa’s transportation system. Many African countries’ fragile health and transportation systems have been further weakened by the COVID-19 pandemic. This literature review confirms the interdependence of the key functional areas of comprehensive development planning and the importance of building and maintaining a sound transportation infrastructure. With respect to partnerships with China, African nations need to strengthen government functional areas more comprehensively, considering all of the areas of development planning including trade as well as transportation and aid issues. It is all the more apparent given the COVID-19 pandemic that these trade deals need to include simultaneous heavy investments in healthcare, education, housing, public utilities (water and electricity), and economic development through improved supply chain management and the use of advanced digital technology. In addition to the deal structures for China’s investments in Africa’s transportation infrastructure, there are also opportunities to reimagine the African nations’ internal transportation spending. For example, there are models in the United States for using transportation funds to invest in health clinics in transit stations. The COVID-19 pandemic has brought this issue to bear, and it is a problem that can be rectified with “comprehensive” development planning that takes into account all of the key functional areas of planning: healthcare, environmental protection, safety, education, housing, economic development, and transportation. Five recommendations follow the literature review and discussion.

No abstract