Brahmbhatt, MilanHu, Albert2012-06-082012-06-082007-11https://hdl.handle.net/10986/7596The generation, diffusion, absorption and application of new technology, knowledge or ideas are crucial drivers of development. This paper surveys the diverse approaches to innovation adopted by East Asian economies, the problems faced and outcomes achieved, as well as possible policy lessons. Knowledge flows from advanced countries remain the primary source of new ideas in developing economies. The authors evaluate the role of three main channels for knowledge flows to East Asia - international trade, acquisition of disembodied knowledge and foreign direct investment. The paper then looks at the exceptionally fast growth in domestic innovation efforts in Korea, Taiwan (China), Singapore and China, drawing on information about R&D as well as original analysis of patent and patent citation data. Citation analysis shows that while East Asian innovations continue to draw heavily on knowledge flows from the US and Japan, citations to the same or to other East Asian economies are quickly rising, indicating the emergence of national and regional knowledge stocks as a foundation for innovation. A last section pulls together findings about policies and institutions to foster innovation, under three heads: the overall business environment for innovation (macroeconomic stability, financial development, openness, competition, intellectual property rights and the quality of communications infrastructure), human capital development, and government fiscal support for innovation.CC BY 3.0 IGOADVERSE IMPACTASSEMBLERSAUTOMOBILEBANK LOANSBARRIERS TO ENTRYBASICBUSINESS ENVIRONMENTBUSINESS OPERATIONSBUSINESS SECTORBUYERBUYERSCAPABILITIESCAPABILITYCAPITAL INVESTMENTCOMMERCIAL BANKCOMMODITYCOMMUNICATIONS INFRASTRUCTURECOMMUNITIESCOMPARATIVE ADVANTAGECOMPETITIVENESSCOMPUTER HARDWARECOMPUTERSCONSUMERSCOPYINGCORPORATE PROFITSCUSTOMER RELATIONSHIPSDISTRIBUTION CHANNELSDRAMDVDECONOMIC DEVELOPMENTECONOMIC VALUEECONOMICSECONOMIES OF SCALEELASTICITYELECTRONIC BUSINESSELECTRONICSELECTRONICS INDUSTRYELECTRONICS TECHNOLOGYENGINEERINGENVIRONMENT FOR INNOVATIONEQUIPMENTEXCHANGE RATESEXCLUDABILITYEXPORT MARKETSEXPORTSEXTERNALITIESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL SECTORFINANCIAL SYSTEMFINANCIAL SYSTEMSFIXED COSTSFLASHFLASH MEMORIESFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN TRADEGDPGDP PER CAPITAGLOBAL COMPETITIVENESSGLOBAL KNOWLEDGEGLOBAL MARKETGLOBAL MARKETSGOVERNMENT FUNDINGGOVERNMENT SUBSIDIESGROWTH PATHSGROWTH THEORYHIGH TECHNOLOGYHIGH TECHNOLOGY PRODUCTSHUMAN CAPITALICTINCOMEINCOME LEVELSINDEXESINDIGENOUS KNOWLEDGEINNOVATIONINNOVATION SYSTEMSINNOVATIONSINSPECTIONINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY LAWINTELLECTUAL PROPERTY PROTECTIONINTELLECTUAL PROPERTY RIGHTSINTERNATIONAL TRADEINVENTIONINVENTIONSINVENTORSINVENTORYJOINT VENTURESJOURNALSKNOW-HOWKNOWLEDGE ASSETSKNOWLEDGE CREATIONKNOWLEDGE PRODUCTIONKNOWLEDGE STOCKSKNOWLEDGE TRANSFERLATIN AMERICANLCDLICENSELICENSE AGREEMENTLICENSESLICENSINGLIVING STANDARDSLOCALIZATIONLOOPSLOW INCOMEMACROECONOMIC STABILITYMANUFACTURINGMANUFACTURING INDUSTRIESMARKET SHAREMARKET SHARESMARKETINGMOBILE PHONESMONITORSMONOPOLYNATURAL RESOURCESNETWORKINGNETWORKSNEW TECHNOLOGIESNEW TECHNOLOGYOUTSOURCINGPACIFIC REGIONPATENTSPER CAPITA INCOMEPRIVATE INVESTMENTPRIVATE PROPERTYPRIVATE SECTORPRODUCT SPECIFICATIONSPRODUCTION COSTSPRODUCTION FUNCTIONSPRODUCTION PROCESSESPRODUCTIVITYPRODUCTIVITY GROWTHPROFIT MARGINSPROTOCOLSPUBLIC GOODPUBLIC GOODSPURCHASING POWERPURE PLAYR&DREAL INTEREST RATERESULTRESULTSSCIENTISTSSEARCHSEMICONDUCTORSSITESTACIT KNOWLEDGETAX INCENTIVESTECHNICAL KNOWLEDGETECHNICAL SUPPORTTECHNOLOGICAL CAPABILITIESTECHNOLOGICAL DEVELOPMENTTECHNOLOGICAL INNOVATIONTECHNOLOGICAL LEARNINGTECHNOLOGY LICENSESTECHNOLOGY LICENSINGTECHNOLOGY SPILLOVERSTECHNOLOGY TRANSFERTECHNOLOGY TRANSFERSTELECOMTELEPHONETOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHUNIVERSITIESUSERUSESWAGESWEBWorld Bank10.1596/1813-9450-4403