Why do we need a theory and metrics of technology upgrading?

Abstract

This paper discusses why we need a theory and metrics of technology upgrading. It critically reviews existing approaches to technology upgrading, and proposes a theoretically relevant and empirically grounded intermediate conceptual and statistical framework to illustrate the types of challenges facing economies with different levels of income. It conceptualises technology upgrading as a three-dimensional process that considers the intensity and type of technology upgrading based on different types of innovation and technology activities; the broadening of technology upgrading through exploitation of technology and knowledge diversification; and interaction with the global economy via the import, adoption, and exchange of knowledge. We consider these to be necessary first steps towards a theory and metrics of technology upgrading and the generation of more relevant composite indicator of technology upgrading.

Paths of technology upgrading in the BRICS economies

“…Equally, technology upgrading is not well represented by the increasing share of some of these activities and reduction of others. The individual importance of production capabilities, R&D capabilities and innovation capabilities as drivers of growth varies according to their dependence on achieved income, technology levels and the structural features of the economy (Radosevic & Yoruk, 2016). What matters are their interaction and complementarity and not only individual levels.…”

“…Against this background, there has been a call for new metrics to understand how technology upgrading takes place -emphasising the challenges of middle-income countries (Radosevic & Yoruk, 2016). In response to this call, we extend recent models that differentiate (1) the intensity of technology upgrading reflected in different types of capabilities; (2) the breadth of technology upgrading; and (3) the relevance of global interaction for technological upgrading (see Radosevic & Yoruk, 2016). We conceptualise technology upgrading as an outcome of the interaction of these three dimensions and derive a set of generic hypotheses on technology upgrading.…”

Upgrading technology in Central and Eastern European economies

“…The current metric, the EU Innovation Union Scoreboard, is designed to measure the innovation capacity of the EU28 countries at a global level; however, due to its strong focus on science and technology frontier activities it is not suitable for the specific evaluation of technology upgrading in CEE economies. Appropriate metrics are needed, which are capable of reflecting a larger proportion of non-R&D and production related knowledge acquisition activities [2], [13].…”

The use of TOPSIS for Ranking WIPO’S Innovation Indicators

“…The major policy implication is that Arab countries should stimulate local efforts and incentives for building and transferring knowledge, paying more attention to the support offered to institutions for the creation and transfer of knowledge through the process, in general; mainly because innovation is not only a process of knowledge diffusion, as countries development by simply adopting existing technologies is no longer sufficient to maintain a high growth rate (Cornell University, insead, & wipo, 2015). Radosevic and Yoruk (2016) observed other perspective of innovation inside the main stream of technological dimensions, when the intensity and weight of technology activities change as countries move from catch-up to post-catch up. This process can be unbalanced or harmonious, with different dimensions of technology upgrading reinforcing each other; hence requires major value in alternative metrics for understanding differences in the accumulation of innovation capabilities, as reflected in the different dimensions of technology upgrading, rather than summary country rankings without these supportive metric analyses.…”