scholarly journals Identifying enablers of innovation in developed economies: A National Innovation Systems approach

2019 ◽  
Vol 7 (1) ◽  
pp. 108-128 ◽  
Author(s):  
Agostino Menna ◽  
Philip R. Walsh ◽  
Homeira Ekhtari
Keyword(s):  
Economic Growth ◽  
Systems Approach ◽  
Developed Countries ◽  
Growth Strategies ◽  
Developed Economies ◽  
Innovation Potential ◽  
Global Innovation ◽  
Long Run ◽  
Using Data ◽  
Innovation Approach

It has been recognized that innovation drives the long-run economic growth of nations and increasingly governments are placing innovation at the center of their economic growth strategies. International variation in the investment on innovation presents an opportunity to examine key enablers of innovation-driving policy choices. Countries find themselves at different stages of economic development and innovation performance and so their relative levels of innovation inputs and outputs are likely to be different. In this study we employ a systems of innovation approach to examine what enables improvements in innovation potential among developed countries. Using data from the 2017 Global Innovation Index (GII) Report, we subjected 770 data measures to an analysis of 242 relationships involving changes in the GII’s innovation inputs/outputs scores and overall innovation potential of 35 OECD countries over a five year period (2012 to 2016). Our findings suggest that instituting policies that improve access to open and competitive markets is the most significant enabler for raising a developed country’s innovation potential.

Innovating for the future: charting the innovation agenda for firms in developing countries

2015 ◽  
Vol 7 (4) ◽  
pp. 314-320 ◽  
Author(s):  
Shirish C Srivastava
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Developed Countries ◽  
Innovation Strategy ◽  
Content Type ◽  
Global Innovation ◽  
Long Run ◽  
Innovation Strategies ◽  
The Developed Countries ◽  
Innovation Approach

Purpose – The purpose of this paper is to identify the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive. With increasing globalization, firms need to continually calibrate and realign their innovation strategies to remain competitive. Although many firms in the developed countries are making sustained efforts to adopt the developing world perspective on innovation, similar efforts by firms in developing countries to reorient their innovation strategies to the developed world are minimal. In the long run, this might erode the competitiveness of firms in developing countries. Leveraging the global innovation strategy framework, the paper suggests four principles that can help developing country firms transition from a local to a global innovation strategy. Specifically, the paper exhorts developing country firms to move from a “good-enough” innovation approach to an “augmented” innovation philosophy that aims to serve the latent needs of the users. The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire. Design/methodology/approach – The paper uses prior literature and frameworks to identify the four principles that firms in developing countries should follow for furthering their innovation agenda with a view to becoming global in their approach. Findings – The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire. Originality/value – The paper identifies the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

PENGARUH INFRASTRUKTUR SECARA SPASIAL TERHADAP KONVERGENSI PERTUMBUHAN EKONOMI DI INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 1 ◽  
pp. 17-28
Author(s):  
Anisa Fahmi
Keyword(s):  
Economic Growth ◽  
Regional Economics ◽  
Developed Countries ◽  
Road Infrastructure ◽  
Long Run ◽  
Catch Up ◽  
The Developed Countries ◽  
Positive Effect ◽  
Neoclassical Growth Theory

Motivated by inter-regional disparities condition that occurs persistently, this study examines the Indonesian economy in the long run in order to know whether it tends to converge or diverge. This convergence is based on the Solow Neoclassical growth theory assuming the existence of diminishing returns to capital so that when the developed countries reach steady state conditions, developing countries will continuously grow up to 'catch-up' with developed countries. Based on regional economics perspective, each region can not be treated as a stand-alone unit,therefore, this study also focuses on the influence of spatial dependency and infrastructure. Economical and political situations of a region will influence policy in that region which will also have an impact to the neighboring regions. The estimation results of spatial cross-regressive model using fixed effect method consistently confirmed that the Indonesian economy in the long term will likely converge with a speed of 8.08 percent per year. Other findings are road infrastructure has a positive effect on economic growth and investment and road infrastructure are spatially showed a positive effect on economic growth. In other words, the investment and infrastructure of a region does not only affect the economic growth of that region but also to the economy of the contiguous regions. 

scholarly journals Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?

2018 ◽  
Vol 8 (4) ◽  
pp. 64 ◽  
Author(s):  
Hien Thi Ngoc Huynh ◽  
Phuong V. Nguyen ◽  
Khoa T. Tran
Keyword(s):  
Emerging Market ◽  
Developed Countries ◽  
Organizational Slack ◽  
Optimum Level ◽  
International Expansion ◽  
Manufacturing Enterprises ◽  
Long Run ◽  
Third Stage ◽  
And Performance ◽  
Using Data

This paper aims to investigate the three-stage theory of international expansion in the long run from the perspective of firm behavior. Although this topic has been mostly explored using data from developed countries, this paper aims to fill the research gap in an emerging market by using an extensive unbalanced panel data of 12,704 unlisted Vietnam manufacturing enterprises from the General Statistics Office during 2007 to 2012. The findings illustrated a significant S-shaped relationship between internationalization and performance. Notably, the results depict significantly moderating effects of both high-discretion slacks and low-discretion slacks on the internationalization–performance relationship across three stages of global expansion as an enterprise enhances this relationship in the first and third stage although this worsens it in the middle stage. The empirical results suggest that firms should determine the optimum level of internationalization and slacks in addition to balancing their costs with their real gains.

scholarly journals THE BASIC FRAMEWORK FOR THE IMPLEMENTATION OF THE GREEN ECONOMY MODEL IN THE BUSINESS PROCESSES OF THE FOOD INDUSTRY

2021 ◽  
Vol 7 (167) ◽  
pp. 28-33
Author(s):  
S. Burlutska ◽  
D. Krasovsky
Keyword(s):  
Economic Growth ◽  
Management System ◽  
Human Life ◽  
Renewable Energy Sources ◽  
Developed Countries ◽  
Green Economy ◽  
Economic Science ◽  
Growth Strategies ◽  
Negative Consequences ◽  
The World

At present, the totality of global environmental and economic threats and challenges has put the world economic science in front of the need to find a new way of developing the world economy. The new model of economic growth must satisfy two main criteria: firstly, to find a qualitatively new direction of growth, and secondly, to ensure the preservation and improvement of the quality of the environment for human life, that is, to ensure new economic growth without negative consequences for the environment. Many modern scientists see the solution of these problems in a relatively new direction in the economy, which has existed for just over 30 years - the "green" economy. Their opinion is shared by leading politicians and civil servants of the world's economic powers. The directions of the "green" economy system are considered: introduction of renewable energy sources; improvement of the waste management system; improvement of the water resources management system; development of "clean" transport; organic farming in agriculture; energy efficiency in housing and communal services; conservation and effective management of ecosystems. As a result of the analysis, key ones were identified directions in which the green economy is moving, systematized basic support tools that divided into price and non-price, in more detail characterized by price with the separation of financial tools that experts focus on international organizations for sustainable development. The main elements of the state are defined green growth strategies and analyzed the situation harmonization of the influence of developed countries on the development of "green" economy. An understanding of the essence and description of the goals of "green" technologies is proposed, which implies work not with the consequences, but with the causes of environmental problems. Considered the "green" experience of developed countries and global companies. In conclusion, the author emphasizes that the concept of a "green" economy is an innovative development project, but to achieve sustainability it is necessary to use the experience of other companies. One of the main problems was noticed, this is the use of pseudo environmental friendliness by companies for their own commercial purposes.

Nexus between Openness to Trade and Economic Growth: An Empirical Investigation of Afghanistan

2019 ◽  
Vol 20 (2) ◽  
pp. 205-223
Author(s):  
Nassir Ul Haq Wani
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Decomposition Analysis ◽  
Developed Countries ◽  
Least Square ◽  
Capital Goods ◽  
Promotion Strategy ◽  
Distributed Lag ◽  
Long Run ◽  
Volume Of Trade

The notion that the international trade is the foundation of economic growth dates long back, and even now, an irresistible body of literature confirms a strong and positive link between trade openness and economic growth. However, most of these studies are focused on developed countries. Indeed literature from developing countries are scant, those from under developed and a landlocked country like Afghanistan are almost non-existent. This article endeavours to innovatively scrutinize the relationship between trade liberalization and economic growth in Afghanistan, using biannual data for the period 1995–2016 and thus evaluates the comparative effect of three different measures of trade openness on the economic growth by using more rigorous econometric techniques. Autoregressive distributed lag (ARDL) method, JJ CO-integration and ordinary least square (OLS) results suggest significant positive long-run relationship between export and economic growth. In contrast, total volume of trade and imports have significant negative effect on the economic growth. The addition of variables and results of fully modified OLS suggest that the results are robust. The Granger causality and variance decomposition analysis indicate the unidirectional causality between trade openness and economic growth. In export model, causality runs from export to growth. Whereas, in the model with total volume of trade and import, causality runs from growth to total volume of trade and imports in Afghanistan. From the findings, it is concluded that the policymakers should focus on export promotion strategy to enhance the economic growth in Afghanistan. Besides, efficient utilization of capital goods should be ensured and reliance on non-capital goods should be less in order to ensure high domestic production in the country. JEL: F10, F43, C22

scholarly journals The Effects of Foreign Resource Inflow and Savings on the Economic Growth of South Africa: A VAR Analysis

2014 ◽  
Vol 6 (3) ◽  
pp. 232-241
Author(s):  
Temitope L. A.
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Impulse Response Function ◽  
Vector Autoregressive ◽  
Var Analysis ◽  
Long Run ◽  
Domestic Savings ◽  
Low Levels ◽  
Using Data

This study adopts both the Vector Autoregressive (VAR) analysis and the Impulse-Response Function (IRF) to examine the importance and the effects of domestic savings and foreign direct investment (FDI) on South African economy, using data spanning over the period 1975 to 2011. While the level of domestic savings is quite low, compared to other emerging economies, South Africa has also been struggling to attract inflow of foreign resources. The form of savings in South Africa is different from the western way of savings; hence the low levels of domestic savings. The variables considered were tested for stationarity and they were all stationary before proceeding to test for cointegration and then estimate and VAR. The cointegration test revealed that there was at least one cointegrating equation; which signifies that there exists a long-run relationship among the variables. The results from the VAR Granger test of causality depicted that domestic savings lead economic growth, while economic growth leads investment. This result of the IRF also showed that while increased domestic savings is important to improve the level of economic growth in South Africa, it also leads FDI. This means that the economic environment needs to be suitable in order to attract foreign investments. The results obtained are reliable and stable as the model passes a battery of diagnostic tests. The study proposes some recommendations for policy.

scholarly journals THE CO - INTEGRATION ANALYSIS OF EFFECT OF VALUE ADDED TAX AND EXCISE DUTIES ON ECONOMIC GROWTH IN NIGERIA

2021 ◽  
Vol 1 (1) ◽  
pp. 44-53
Author(s):  
ADEGBITE, TAJUDEEN ADEJARE
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Value Added Tax ◽  
Excise Duty ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Excise Duties ◽  
Integration Analysis

This study examined the co-integration analysis of effect of value added tax and excise duties on economic growth in Nigeria. It also looked at the direction of causality among value added tax excise duty, interest rate, exchange rate and economic growth employing the method of Johansen co-integration and the Granger causality tests using data spanning the period 1994- 2014. Results showed that VAT has positive significant impact on GDP in the short run but has negative impact on GDP in the long run with (  = 1.296417; t=7.41; P>|t|= 0.000) and ( =- 13.38159; z=-3.60 , P>|z|= 0.000) respectively. Also, VAT does not granger cause GDP. Excise duty impacted GDP negatively in the short run but positively in the long run with (=-1.111069; t=-5.16, , P>|t|= 0.000) and ( =37.54469; z = 4.07; P>|z|= 0.000) respectively. It is recommended that, once the value added tax impacted economic growth positively in the shortrun but negative in the long run, government should increase the rate of value added tax in Nigeria, this will in turn boosting the revenue generation in Nigeria. Also, government should increase excise duty on tobacco and alcoholic so as to have positive significant impact on economic growth in the short run.

scholarly journals Fixed Investment and Economic Growth: ARDL and Causality Exploration for SADC Countries

2021 ◽  
Vol 11 (4) ◽  
pp. 18
Author(s):  
Reginald Masimba Mbona ◽  
Chilombo Stephania Mumba ◽  
Tinashe Mangudhla
Keyword(s):  
Economic Growth ◽  
Purchasing Power Parity ◽  
Power Parity ◽  
Fixed Investment ◽  
Economic Activities ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
The Cost ◽  
Marginal Returns

In assessing the short run and the long-run effects of fixed investment and economic growth among Southern Africa countries, we evaluated the economic progress of the SADC (Southern African Development Committee) region. Our objective is to determine how variables (GDP, purchasing power parity, inflation, electricity, balance-of-payments, and unemployment) can be affected by the fixed investment. In determining how fixed investment affects economic activities and policies among the states, the ADRL estimation approach is applied. Using data from 13 countries in the SADC region from the period 1992-2018, we enumerate the variables’ marginal returns against the fixed investment component. The results of diagnostic and other tests show that all statistical procedures are robust. The result proves that the benefits of fixed investment are yielded over a long period rather than short periods. As a result, the cost in the short term cannot be compared to the benefits that will be enjoyed later by an economy as it becomes productive. Furthermore, the lack of consistent fixed investment among countries will eventually lead to insufficient cash flow, which will negatively affect the currency. These results would seem to suggest that the introduction of policies that promote investment will massively contribute to increased productivity and positive economic growth in the region.

scholarly journals Effects of Agricultural, Manufacturing, and Mineral Exports on Angola’s Economic Growth

Energies ◽  
2020 ◽  
Vol 13 (6) ◽  
pp. 1494 ◽  
Author(s):  
Titus Isaiah Zayone ◽  
Shida Rastegari Henneberry ◽  
Riza Radmehr
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Dutch Disease ◽  
Ardl Model ◽  
Agricultural Exports ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Using Data

This study investigates the effects of Angola’s agricultural, manufacturing, and mineral exports on the country’s economic growth using data from 1980 to 2017. An Autoregressive Distributed Lag (ARDL) model is employed to estimate the effect of sectoral exports on economic growth. The estimation results show that while exports from all three sectors (manufacturing, mineral, and non-mineral) have driven Angola’s economic growth in the long-run; only non-manufacturing (agricultural and mineral) exports have led its growth in the short-run. Moreover, growth in non-export GDP was driven by mineral exports in the long-run and agricultural exports in the short-run. Considering the statistically significant and positive impact of mineral exports on the Angolan GDP as well as on its non-export GDP, this study points to a lack of evidence supporting the Dutch disease phenomenon in Angola.

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