Diversification, Innovation, and Imitation inside the Global Technological Frontier
Recent research highlights the relationship between economic development and productive diversification, which may be hindered by market failures. After identifying stages of diversification in disaggregated export data, the authors develop a metric for the flows of export "discoveries," o...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/04/6682641/diversification-innovation-imitation-inside-global-technological-frontier http://hdl.handle.net/10986/8735 |
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okr-10986-87352021-04-23T14:02:40Z Diversification, Innovation, and Imitation inside the Global Technological Frontier Klinger, Bailey Lederman, Daniel ABSOLUTE VALUE AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE BARRIER BARRIERS TO ENTRY BUSINESS ECONOMICS CHANNEL COMMERCIAL POLICY COMPARATIVE ADVANTAGE COUNTRY LEVEL DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMICS RESEARCH EMPIRICAL EVIDENCE EMPIRICAL MODEL EMPIRICAL MODELS EMPIRICAL REGULARITIES ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE RATES EXPECTED RETURNS EXPLANATORY VARIABLES EXPORT EXPORT DIVERSIFICATION EXPORT GROWTH EXPORTS FACTOR ENDOWMENTS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH POLICY GROWTH RATE GROWTH RATES INCOME INCOME LEVELS INDUSTRIAL ECONOMICS INDUSTRIAL POLICY INDUSTRIALIZATION INTERNATIONAL TRADE INVESTMENT CLIMATE MARGINAL EFFECT MARKET FAILURE MARKET FAILURES MERCHANDISE MERCHANDISE EXPORTS MERCHANDISE TRADE MIDDLE EAST NEGATIVE EFFECT NET EXPORTS PATENTS POINT ESTIMATE POLICY IMPLICATIONS POLICY RESEARCH POOR COUNTRIES PRODUCTION COSTS PROFITABILITY PROGRAMS PROPERTY RIGHTS RANGE REGRESSION ANALYSIS SAFETY SAFETY STANDARDS SIGNIFICANT EFFECT SMALL BUSINESS SPUR STANDARD DEVIATION UPPER Recent research highlights the relationship between economic development and productive diversification, which may be hindered by market failures. After identifying stages of diversification in disaggregated export data, the authors develop a metric for the flows of export "discoveries," or inside-the-frontier innovations in developing countries. They then explore the empirical relationship between economic development and (1) inside-the-frontier-innovation as reflected by the introduction of new export products, (2) export diversification measured by an index of export-revenue concentration, and (3) on-the-frontier innovation as reflected in patents. The data suggest, unsurprisingly, that inside-the-frontier innovation is more common among poor countries than among industrial economies. Overall export diversification increases at low levels of development but declines with development after a high-income point, whereas patenting activity rises exponentially with development. The data also suggest that the relationship between the frequency of export discoveries and economic development is not due to changes in the industrial composition of exports. The authors use a simple model of innovation and imitation to test the hypothesis that the threat of imitation inhibits the discovery of new exports. Econometric evidence suggests that the frequency of export discoveries across countries rises with the returns of export activities (proxied by exogenous export growth during the sample period), but the magnitude of this effect increases with barriers to entry. The count-data estimations deal with unobserved international heterogeneity, and the results are robust to various changes in the specification of the empirical model. This finding supports the hypothesis that market failures inhibit inside-the-frontier innovation. 2012-06-21T21:41:54Z 2012-06-21T21:41:54Z 2006-04 http://documents.worldbank.org/curated/en/2006/04/6682641/diversification-innovation-imitation-inside-global-technological-frontier http://hdl.handle.net/10986/8735 English Policy Research Working Paper; No. 3872 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ABSOLUTE VALUE AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE BARRIER BARRIERS TO ENTRY BUSINESS ECONOMICS CHANNEL COMMERCIAL POLICY COMPARATIVE ADVANTAGE COUNTRY LEVEL DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMICS RESEARCH EMPIRICAL EVIDENCE EMPIRICAL MODEL EMPIRICAL MODELS EMPIRICAL REGULARITIES ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE RATES EXPECTED RETURNS EXPLANATORY VARIABLES EXPORT EXPORT DIVERSIFICATION EXPORT GROWTH EXPORTS FACTOR ENDOWMENTS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH POLICY GROWTH RATE GROWTH RATES INCOME INCOME LEVELS INDUSTRIAL ECONOMICS INDUSTRIAL POLICY INDUSTRIALIZATION INTERNATIONAL TRADE INVESTMENT CLIMATE MARGINAL EFFECT MARKET FAILURE MARKET FAILURES MERCHANDISE MERCHANDISE EXPORTS MERCHANDISE TRADE MIDDLE EAST NEGATIVE EFFECT NET EXPORTS PATENTS POINT ESTIMATE POLICY IMPLICATIONS POLICY RESEARCH POOR COUNTRIES PRODUCTION COSTS PROFITABILITY PROGRAMS PROPERTY RIGHTS RANGE REGRESSION ANALYSIS SAFETY SAFETY STANDARDS SIGNIFICANT EFFECT SMALL BUSINESS SPUR STANDARD DEVIATION UPPER |
| spellingShingle |
ABSOLUTE VALUE AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE BARRIER BARRIERS TO ENTRY BUSINESS ECONOMICS CHANNEL COMMERCIAL POLICY COMPARATIVE ADVANTAGE COUNTRY LEVEL DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DEVELOPMENT STRATEGY DIVERSIFICATION ECONOMETRICS ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMICS RESEARCH EMPIRICAL EVIDENCE EMPIRICAL MODEL EMPIRICAL MODELS EMPIRICAL REGULARITIES ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE RATES EXPECTED RETURNS EXPLANATORY VARIABLES EXPORT EXPORT DIVERSIFICATION EXPORT GROWTH EXPORTS FACTOR ENDOWMENTS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GROSS DOMESTIC PRODUCT GROWTH POLICIES GROWTH POLICY GROWTH RATE GROWTH RATES INCOME INCOME LEVELS INDUSTRIAL ECONOMICS INDUSTRIAL POLICY INDUSTRIALIZATION INTERNATIONAL TRADE INVESTMENT CLIMATE MARGINAL EFFECT MARKET FAILURE MARKET FAILURES MERCHANDISE MERCHANDISE EXPORTS MERCHANDISE TRADE MIDDLE EAST NEGATIVE EFFECT NET EXPORTS PATENTS POINT ESTIMATE POLICY IMPLICATIONS POLICY RESEARCH POOR COUNTRIES PRODUCTION COSTS PROFITABILITY PROGRAMS PROPERTY RIGHTS RANGE REGRESSION ANALYSIS SAFETY SAFETY STANDARDS SIGNIFICANT EFFECT SMALL BUSINESS SPUR STANDARD DEVIATION UPPER Klinger, Bailey Lederman, Daniel Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| relation |
Policy Research Working Paper; No. 3872 |
| description |
Recent research highlights the relationship between economic development and productive diversification, which may be hindered by market failures. After identifying stages of diversification in disaggregated export data, the authors develop a metric for the flows of export "discoveries," or inside-the-frontier innovations in developing countries. They then explore the empirical relationship between economic development and (1) inside-the-frontier-innovation as reflected by the introduction of new export products, (2) export diversification measured by an index of export-revenue concentration, and (3) on-the-frontier innovation as reflected in patents. The data suggest, unsurprisingly, that inside-the-frontier innovation is more common among poor countries than among industrial economies. Overall export diversification increases at low levels of development but declines with development after a high-income point, whereas patenting activity rises exponentially with development. The data also suggest that the relationship between the frequency of export discoveries and economic development is not due to changes in the industrial composition of exports. The authors use a simple model of innovation and imitation to test the hypothesis that the threat of imitation inhibits the discovery of new exports. Econometric evidence suggests that the frequency of export discoveries across countries rises with the returns of export activities (proxied by exogenous export growth during the sample period), but the magnitude of this effect increases with barriers to entry. The count-data estimations deal with unobserved international heterogeneity, and the results are robust to various changes in the specification of the empirical model. This finding supports the hypothesis that market failures inhibit inside-the-frontier innovation. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Klinger, Bailey Lederman, Daniel |
| author_facet |
Klinger, Bailey Lederman, Daniel |
| author_sort |
Klinger, Bailey |
| title |
Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| title_short |
Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| title_full |
Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| title_fullStr |
Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| title_full_unstemmed |
Diversification, Innovation, and Imitation inside the Global Technological Frontier |
| title_sort |
diversification, innovation, and imitation inside the global technological frontier |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/04/6682641/diversification-innovation-imitation-inside-global-technological-frontier http://hdl.handle.net/10986/8735 |
| _version_ |
1764405910628728832 |