Competition, Innovation and Competitiveness in Developing Countries

OECD Development Centre

The competitiveness of firms in a global economic environment is an essential element in development strategy, but simply creating an open economy will not suffice to stimulate competitiveness if innovation is lacking. This is the major finding of this cross-country and multi-industry study based on the experience of Brazil, Chinese Taipei, India and Korea.

In developing countries and emerging economies, which can be considered technological latecomers, traditional industrial practices can be linked to policy changes which foster innovation, but can equally result in stagnation if the policy/practice mix is wrong. The case studies demonstrate that where industrial habits tend to reduce competitiveness, policies can make a difference, especially where they are directed to managing the timing, sequencing and type of market-opening steps. The book therefore opens a fresh debate on the industrial policies which developing countries need to adopt in order to compete and grow in a globalised economic environment.

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