The global location of R&D centres by MNCs is a rather new phenomenon; especially when it comes to establishing R&D centres in developing countries. The existing and rather limited literature on globalization of innovation provides four possible explanations of why multinationals locate R&D...

This chapter explores the role of regional innovation systems supporting capability building among indigenous SMEs in two different RIS in Mexico. It explicitly attempts at testing the validity of the underlying assumptions in RIS literature in the context of developing countries, such as the...

Innovation systems in developing countries differ largely from those in developed countries. A typical difference is that less developed countries have weaker institutional frameworks and low levels of interaction among the different actors in the innovation system. Scholars in innovation system...

This Paper studies the effect of knowledge diffusion on the incentives for developed countries’ (DC) firms to undertake costly transfer of production knowledge of an input to their developing countries’ (LDC) suppliers whose costs of production vary inversely with their technological effort....

The recent increase in R&D offshoring have raised fears that knowledge and competitiveness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at...

Conventional PPP-adjusted real output measures, invaluable for making international comparisons of living standards, may greatly exaggerate the productive capacity of poor countries. The equilibrium prices of an hypothetical world of full economic integration provide an instructive basis for...

This chapter describes how the spatial distribution of economic activity changes as economies develop and grow. We start with the relation between development and rural-urban migration. Moving beyond the coarse rural-urban distinction, we then focus on the continuum of locations in an economy...

A recent preoccupation in scholarly research is the capacity of firms in developing country industrial clusters to comply with international corporate social responsibility (CSR) policies and codes of conducts. This research is at an early stage and draws on several – often quite distinct -...

We analyze the relationship between legal institutions, innovation and growth. We compare a rigid (law set ex-ante) legal system and a flexible one (law set after observing current technology). The flexible system dominates in terms of welfare, amount of innovation and output growth at...