Publication:
Innovation Shortfalls

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dc.contributor.authorRodríguez-Clare, Andrés
dc.contributor.authorMaloney, William
dc.date.accessioned2012-06-07T20:37:42Z
dc.date.available2012-06-07T20:37:42Z
dc.date.issued2007-07
dc.description.abstractThere is a common perception that low productivity or low growth is due to what can be called an "innovation shortfall," usually identified as a low rate of investment in research and development (R&D) when compared with some high innovation countries. The usual reaction to this perceived problem is to call for increases in R&D investment rates, usually specifying a target that can be as high as 3 percent of GDP. The problem with this analysis is that it fails to see that a low R&D investment rate may be appropriate given the economy's pattern of specialization, or may be just one manifestation of more general problems that impede accumulation of all kinds of capital. How can we know when a country suffers from an innovation shortfall above and beyond the ones that should be expected given the country's specialization and accumulation patterns? This is the question the authors tackle in this paper. First, they show a simple way to estimate the R&D gap that can be explained by a country's specialization pattern, illustrating it for the case of Chile. For this country they find that although its specialization in natural-resource-intensive sectors explains part of its R&D gap, a significant shortfall remains. Second, the authors show how a calibrated model can be used to determine the R&D gap that should be expected given a country's investment in physical and human capital. If the actual R&D gap is above this expected gap, then one can say that the country suffers from a true innovation shortfall.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/07/7964756/innovation-shortfalls
dc.identifier.doi10.1596/1813-9450-4283
dc.identifier.urihttps://hdl.handle.net/10986/7470
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4283
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBENCHMARKING
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL-LABOR
dc.subjectCAPITAL-LABOR RATIO
dc.subjectCAPITAL-OUTPUT RATIO
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSTANT RATE
dc.subjectCOST OF R&D
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISCOUNT RATE
dc.subjectDOMESTIC FIRMS
dc.subjectDOMESTIC R&D
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC STRUCTURE
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM ANALYSIS
dc.subjectEXTERNALITIES
dc.subjectEXTERNALITY
dc.subjectFACTORS OF PRODUCTION
dc.subjectFREE FLOW
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGROWTH DIAGNOSTICS
dc.subjectGROWTH RATE
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME DIFFERENCES
dc.subjectINCOME LEVELS
dc.subjectINCOME TAXES
dc.subjectINCREASE IN LABOR
dc.subjectINTEREST RATE
dc.subjectINTERNATIONAL SPILLOVERS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT GOODS
dc.subjectINVESTMENT IN RESEARCH
dc.subjectINVESTMENT LEVELS
dc.subjectINVESTMENT RATE
dc.subjectINVESTMENT RATES
dc.subjectKNOWLEDGE CAPITAL
dc.subjectKNOWLEDGE SPILLOVERS
dc.subjectLABOR FORCE
dc.subjectLABOR PRODUCTIVITY
dc.subjectLATIN AMERICAN
dc.subjectLDCS
dc.subjectMARKET FAILURES
dc.subjectNATIONAL ECONOMY
dc.subjectNATURAL RESOURCES
dc.subjectNEOCLASSICAL MODEL
dc.subjectOPEN ECONOMY
dc.subjectOPTIMIZATION
dc.subjectPRIVATE RATE
dc.subjectPRIVATE RATES
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectR&D
dc.subjectR&D INTENSITIES
dc.subjectR&D INTENSITY
dc.subjectR&D INVESTMENT
dc.subjectR&D POLICY
dc.subjectR&D SPENDING
dc.subjectR&D SPILLOVERS
dc.subjectR&D TAX
dc.subjectRATE OF INVESTMENT
dc.subjectRATE OF RETURN
dc.subjectRATE OF RETURN TO CAPITAL
dc.subjectRATES OF RETURN
dc.subjectREAL INTEREST RATE
dc.subjectRELATIONSHIP BETWEEN R&D
dc.subjectSHADOW PRICES
dc.subjectSOUTH AMERICA
dc.subjectSTATE EQUILIBRIUM
dc.subjectTAX POLICY
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTECHNOLOGICAL CHANGE
dc.subjectTFP
dc.subjectTOTAL LABOR FORCE
dc.subjectTOTAL OUTPUT
dc.subjectTRADE BARRIERS
dc.subjectTRADE THEORY
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.titleInnovation Shortfallsen
dspace.entity.typePublication
okr.crossref.titleInnovation shortfalls
okr.date.doiregistration2025-04-10T09:26:58.041789Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/07/7964756/innovation-shortfalls
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeTrade and Competitiveness
okr.guid532231468315572033
okr.identifier.doi10.1596/1813-9450-4283
okr.identifier.externaldocumentum000158349_20070725133930
okr.identifier.internaldocumentum7964756
okr.identifier.reportWPS4283
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/07/25/000158349_20070725133930/Rendered/PDF/WPS4283.pdfen
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicScience and Technology Development::Research and Development
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicInternational Economics and Trade
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationc7d4d195-f430-5039-b564-a3e95b24a117
relation.isAuthorOfPublication.latestForDiscoveryc7d4d195-f430-5039-b564-a3e95b24a117
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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