Person: Goldberg, Itzhak
Center for Social and Economic Research, Warsaw, Poland
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Economics of Innovation; Business Environment; Technology Transfer; State Enterprise Reform; Microeconomics
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Center for Social and Economic Research, Warsaw, Poland
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Last updated:February 1, 2023
Biography
Since retiring from the World Bank in 2009, after a 19 years career, I joined CASE, Center for Social and Economic Research, a think tank in Warsaw as CASE Fellow. We have been working on several topics (Creativity and innovation, impact evaluation of EU’s SME support) for the European Commission. I kept working for ECA and the Africa region. In 2011, I joined the, European Commission’s Technology Institute IPTS in Seville on a visiting fellowship working on EU-US innovation policies. As of September I will be in residence with Fraunhofer MOEZ in Leipzig working on technology transfer and other innovation and IPR topics. My recent book, with Goddard, Kuriakose and Racine, is titled “Igniting Innovation” (2011).
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Publication Best Practices and Lessons Learned in ICT Sector Innovation: A Case Study of Israel(World Bank, Washington, DC, 2016-01) Getz, Daphne; Goldberg, ItzhakThis case study of Israel's ICT sector highlights the important role of the government in the emergence of Israel as a power house of high-tech in information and communications technology, by laying the foundations for private industry to support innovation, and through heavy investment in building the much-needed human capital resource. The main strategic asset is human resources. The quality of human capital is essential to innovation and economic growth. Skilled human resources are the most strategic assets in the knowledge society. The Israeli higher education system, mostly supported by the government, contributed a great deal to the success of Israel in the high-tech arena.Publication Igniting Innovation : Rethinking the Role of Government in Emerging Europe and Central Asia(World Bank, 2011-09-22) Goddard, John Gabriel; Goldberg, Itzhak; Kuriakose, Smita; Racine, Jean-LouisThis book builds on the lessons from public institutions and programs to support innovation, both successful and failed, from Europe and Central Asia (ECA) as well as China, Finland, Israel, and the United States. Field visits to these countries were hosted by the innovation and scientific agencies of the respective governments, strengthening the international experiences presented here. This book is a culmination of ten years of analytic and operational work led by the private and financial sector development department and the chief economist's office of the ECA region of the World Bank. Several regional reports and country policy notes exploring these issues have been published over the years. The book also reflects the lively discussion in the ongoing series of flagship events to promote knowledge based economies in the region. The most recent knowledge economy forum was held in Berlin in 2010, hosted by the fraunhofer center for Central and Eastern Europe. The book identifies policies that have an adverse affect on innovation. It also identifies policy gaps that, if filled, could have a catalytic effect on private sector innovation.Publication Globalization and Technology Absorption : Role of Trade, FDI and Cross-Border Knowledge Flows(World Bank, Washington, DC, 2010-05) Branstetter, Lee; Goldberg, Itzhak; Goddard, John Gabriel; Kuriakose, SmitaImproving the ability of Europe and Central Asia (ECA) countries to tap into the global technology pool is an important mechanism for accelerating their industrial development, worker productivity and economic growth. Trade flows, foreign direct investment (FDI), research and development (R&D), and labor mobility and training, are widely accepted as key mechanisms for knowledge absorption. Absorption requires tough decisions and large investments, as firms need to spend resources on modifying imported equipment and technologies, and reorganizing production lines and organizational structures. Case studies of privatized enterprises in Serbia highlight the important role of foreign investors in knowledge absorption, whether acquired through capital goods imports, exporting, hiring consultants and other knowledge brokers, or from licensing technology. The Serbian case studies targeted FDI based on acquisition of existing assets from the government (privatization), or from private owners, rather than 'greenfield' FDI. The analyses suggested, in general, that companies sold to domestic investors were not able to increase exports in a significant way, while comparable firms receiving FDI did much better. In addition, more significant changes in product mix and manufacturing occurred in companies bought by foreign investors. New directors were brought in from the multinational enterprises (MNE), the domestic investors' holdings, from rival companies, or promoted from within. In companies acquired by foreign investors, the comparative advantage for R&D was in the adaptation of products and machinery to local conditions, rather than in innovation.Publication Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows(Washington, DC : World Bank, 2008) Branstetter, Lee; Goldberg, Itzhak; Goddard, John Gabriel; Kuriakose, SmitaThis study analyzes the extent of knowledge and technology absorption for firms in Europe and Central Asia (ECA), as well as the factors that influence absorption, using statistical analyses of various data sources, including the World Bank enterprise surveys, patent databases maintained by the United States (U.S.) and European patent offices, and case studies. The study addresses the following issues: (i) what can we learn from patents and patent citations about international knowledge flows and cross-national technological cooperation in ECA? (ii) How does openness to trade, participation in global supply networks, and investment in human capital, via on-the-job training, enhance knowledge and technology absorption in ECA-region manufacturing firms? How does foreign direct investment (FDI) stimulate acquisition of managerial and technical skills, new machinery and equipment, and market development?Publication Public Financial Support for Commercial Innovation in ECA Countries(World Bank, Washington, DC, 2010-05) Trajtenberg, Manuel; Goldberg, Itzhak; Jaffe, Adam; Muller, Thomas; Sunderland, Julie; Blanco Armas, EnriqueKey factors driving self-sustained, long-term economic growth are innovation and technology absorption; these factors are generated from within the economic system, responding to economic incentives. This conceptual framework molds analysis: on the one hand, the view of the centrality of innovation and knowledge creation in the growth process and, on the other hand, the understanding that these are economic factors that may be shaped and influenced by properly designed economic policies. For the purpose of this knowledge brief, innovation can be defined as the development and commercialization of new unproven technologies and untested processes and products, and absorption as the application of existing technologies, processes, and products. The ability of an economy to research and develop new technologies increases its ability to understand and apply existing technologies. Vice versa, the absorption of cutting-edge technology inspires new ideas and innovations.Publication Can Russia Compete?(Washington, DC: Brookings Institution Press, 2008) Desai, Raj M.; Goldberg, Itzhak; Desai, Raj M.; Goldberg, Itzhak; Blanco-Armas, Enrique; Gimpelson, Vladimir; Goddard, John Gabriel; Kuriakose, Smita; Kuznetsov, Boris; Savchenko, Yevgeniya; Schaffer, Mark; Tan, HongRussia has joined the club of rapidly growing economies, driven by rising prices for oil and gas. Russian authorities are concerned about sustaining this economic performance, however. Thus they have sought to diversify and broaden the basis for growth beyond the profitable natural resource sector and to build an economy that will be able to compete in the twenty-first century. This book presents the case that Russia’s neglected manufacturing sector is in need of human capital andpolicy reforms that will unleash its innovative potential. Can Russia Compete? quantifies and benchmarks the relative strengths and weaknesses of that sector, identifying opportunities to increase Russian productivity and competitiveness. Drawing on original survey data from Russian firms of all sizes, the authors formulate proposals that aim to enhance the innovative potential of Russian firms,upgrade the skills of their workforces, and develop a business-friendly climate with lower administrative costs and greater policy certainty. The original research and analysis of Raj Desai, Itzhak Goldberg, and their colleagues will be of use to anyone interested in the problems of building manufacturing competitiveness in a globally integrated economy. It will also be of interest to organizations planning to do business or invest in Russia.Publication R&D Institutes in ECA : A Reform Strategy(World Bank, Washington, DC, 2009-04) Racine, Jean-Louis; Goldberg, Itzhak; Goddard, John Gabriel; Kuriakose, Smita; Kapil, NatashaIn Eastern Europe and Central Asia (ECA) countries, the states own and operate most of the research and development institutes (RDIs). These institutes often play an important and even dominant role in conducting research and development (R&D). In high-income economies, however, the private sector typically dominates R&D. Private sector research usually responds better to market incentives, resulting in more useful innovations than public sector R&D, although the two are complementary. In general, the economic impact of RDIs in ECA has been low. Although several ECA RDIs are able to publish and patent as much as their high-income economy counterparts, the quality of their research and ability to diffuse knowledge is lagging and their international publications are not highly cited. In addition, their patents are not translated into commercial applications through licensing or contract research with industry. A reform strategy is proposed here for RDIs in ECA, based on their relevance to national priorities, expected role as providers of public versus private goods, performance levels, and relation to relevant markets and users. When deciding on the appropriate ownership and management structures for the RDIs, governments need to distinguish among RDIs that provide mainly public goods, RDIs that sell or could possibly sell mainly private goods and services, and RDIs that produce public and private goods.Publication Can Russia Complete?(Washington, DC: Brookings Institution Press, 2008) Desai, Raj M.; Goldberg, Itzhak; Desai, Raj M.; Goldberg, ItzhakRussian economy has been growing at an average nominal rate of 6 percent annually for the past decade. Among the most important factors contributing to its expansion has been the skyrocketing cost of oil and gas. In 2000, when Vladimir Putin took office, the cost of oil was approximately $20 a barrel; at the end of his term, it was five times higher. Meanwhile, the competitiveness of Russian enterprises has become increasingly fragile because of the appreciating ruble, climbing resource prices, and rising wages as well as the exhaustion of Russia's excess industrial capacity. Observers have called for Russian authorities to take measures to counterbalance the nation's increasing economic dependence on natural resources. Economic diversification can cover a wide number of issues and involve many challenges, including entrepreneurship, foreign investment, regional development, and physical infrastructure. In Russia's case, it comes down to one thing: ensuring that the manufacturing sector can compete in the global economy. Russian competitiveness will not depend on centralized, top-down efforts to pick winners but on broader policy measures designed both to improve the investment climate-which affects firms' incentives to invest productively and create jobs-and to develop a more competitive, knowledge-based economy. Russian authorities are seeking to address many of the country's most important developmental challenges. Economic diversification will require reducing investment risks induced by national and regional policies and lowering barriers to entry for newer, more dynamic, and innovative firms, specifically by facilitating transfer of land from municipalities and from older, loss-making firms. It also will require greater inclusiveness in government decision making, more transparency regarding government decision making, and stable legislation at all levels of government. This book quantifies and benchmarks the relative strengths of Russian manufacturing and identifies opportunities to increase its productivity and competitiveness. This volume focuses on the challenges now facing enterprises in Russia, highlighting sources of productivity growth and competitiveness within enterprises, including technological progress (knowledge absorption and innovation), worker skills, and the investment climate. After the 1998 crisis, as gross domestic product rebounded, investment accelerated, and foreign direct investment increased dramatically, Russia's recovery surpassed expectations. Yet, a closer look at national accounts reveals that much of that shift has produced relative price increases in (non-tradable) services and full capacity utilization in industry-indicators more characteristic of a resource dependent economy than of successful industrial diversification.Publication Poland and the Knowledge Economy : Enhancing Poland's Competitiveness in the European Union(Pruszkow, Poland: Rewasz Publishing House and the World Bank, 2004) Goldberg, ItzhakThe Poland Knowledge Economy Assessment (KEA) aims to provide policy options for securing sustainable growth, and improving competitiveness, by creating an environment conducive to business development, and investment in general, as well as to knowledge generation and absorption via innovation, and learning, in particular, as well as by stimulating investment in innovation, and in learning systems. This KEA argues that efficient, and relevant lifelong learning systems, Information and Communication Technologies (ICT), institutions and funding mechanisms to support innovative research and development (R&D), are essential components of the National Innovation System (NIS). The foremost theme of this report is securing sustainable growth and competitiveness in Poland, by stimulating investment in R&D, and in appropriate learning systems, which have a key role in developing a country's absorptive capacity-the ability to identify, assimilate, and exploit knowledge from both domestic, and external sources. Therefore, policies that support the development of inter-firm linkages, and the capacity to absorb new knowledge that can be gained through such linkages, are crucial elements. As regards R&D and innovation, efforts need to be made to build institutions and provide financial incentives aiming to increase Polish R&D. Nevertheless, it should be stressed that an improvement in the business environment in Poland is a necessary condition for raising the R&D within firms. Most importantly, efforts need to be made to increase the quality, and relevance of the formal education system, ensure the provision of life long learning systems to the entire population, and improve the linkages between academia, the scientific, and business communities that assist the transfer of technology in other countries. It is proposed that the regulatory framework be updated to the European Union (EU) 2002 level, and that the capacity, and market credibility of the Office of Telecommunications and Post Regulation (the regulatory authority), be strengthened in order to sustain competition. The implementation of e-government services for businesses, as well as citizens is key for improving the efficiency, and competitiveness of Polish business.Publication Productivity, Ownership and the Investment Climate : International Lessons for Priorities in Serbia(World Bank, Washington, DC, 2005-08) Radulovic, Branko; Goldberg, Itzhak; Schaffer, MarkThe authors use data on 27,000 firms from 50 countries, half of which are transition economies, together with the case of Serbia to examine the relationship between productivity, the investment climate, and private ownership of firms. As government capacity to address investment climate constraints is limited, the prioritization of the constraints is critical. Identification of the relative effects of various investment climate constraints and ownership on productivity should serve as a guide for such prioritization. Although ownership has recently received less attention in policy decisions than before, according to the econometric analysis of productivity reported by the authors, private ownership is an equally or more important determinant of productivity than other components of the investment climate. The importance of ownership shows that an unfinished privatization and restructuring agenda might have negative effects on productivity, in parallel to poor investment climate. Another important finding is that countries in which firms complain more about infrastructure tend to have less productive firms.