The role of science, technology and innovation in economic growth: a theoretical and empirical review and its implications for Vietnam
Keywords:
Economics, Economic growth, Science and Technology, InnovationAbstract
The paper conducts theoretical and empirical review on the role of science, technology and innovation (STI) in economic growth. In general, economic growth theories and practical experience around the world all show that STI has long-term effects on economic growth. However, the latter economic growth theories show that, depending on particular national innovation systems, the impact of STI on economic growth differs from country to country. Practical experience from successful countries shows that, in order to sustain long-term economic growth, each country needs to build a national innovation system tailored to its conditions and circumstances, where the private sector should play a central role. The system must ensure to generate a workforce of high quality and consistent with the needs of the market.
Code: 20122901
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References
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25. Jones, C. (1995). “Time series tests of endogenous growth models”. Quarterly Journal of Economics 110, 495-525
26. Jones, L. E., and Manuelli, R. E. (1997). “The sources of growth”. Journal of Economic Dynamics and Control (21), 75-114.
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28. Keck, O. (1993). The National System for Technical Innovation in Germany. In R. R.Nelson, National Innovation System (pp. 115-157). Oxford University Press.
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30. Kurz, H. D. (2012). Innovation, Knowledge and Growth. New York: Routledge.
31. Kuznets S., 1971, Economic Growth of Nations: Total Output, Structure and Spread, Cambridge (Mass), Belknap Press.
32. Lin, K. J., Lu, X., Zhang, J., and Zheng, Y. (2020). “State-owned enterprises in China: A review of 40 years of research and practice”. China Journal of Accounting Research, 31-55.
33. Liu, X., Serger, S. S., Tagscherer, U., and Chang, A. Y. (2017). “Beyond catch-up-can a new innovation policy help China overcome the middle income trap?”Science and Public Policy, 44(5), 656-669.
34. Lucas, R. (1988). “On the mechanics of economic development”. Journal of Monetary Economics 22, 3-42
35. Lundvall, B-Å. (1992). National Systems of Innovation: Towards a theory of Innovation and Interactive Learning. London: Pinter Publishers.
36. Metcalfe, J.S. and John Foster, 2010. "Evolutionary Growth Theory", Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 3, Edward Elgar Publishing.
37. Mowery, D. C. (1994). The U.S. National Innovation System: Origins and Prospects for Change. In D. C. Mowery, Science and Technology Policy in Interdependent Economies (pp. 79-106). Springer, Dordrecht.
38. Nelson, R. and Winter, S. (1982). An Evolutionary Theory of Economic Change. Cambridge: The Belknap Press of Harvard University Press.
39. Nelson, R.R. (1993). National Innovation Systems: A Comparative Analysis. New York and Oxford: Oxford University Press.
40. Odagiri, H., and Goto, A. (1993). The Japanese System of Innovation: Past, Present, and Future. In R. R. Nelson, National Innovation Systems: A comparative analysis (pp. 76-114). New York, Oxford: OXFORD UNIVERSITY PRESS.
41. Ohno, K., 2009. “Avoiding the Middle-Income Trap: Renovating Industrial Policy Formulation in Vietnam”. ASEAN Economic Bulletin, Vol. 26, No. 1, pp. 25-43.
42. Rasiah, R. (2018). Innovation policy, Inputs, and Outputs in ASEAN. In M. Ambashi, Innovation Policy In ASEAN (pp. 277-320). Economic Research Institute for ASEAN and East Asia.
43. Romer, P. (1986). “Increasing returns and long-run growth”. Journal of Political Economy, 94, 1002-1037.
44. Romer, P. (1990). “Endogenous technological change”. Journal of Political Economy 98, 71-102.
45. Schot, J. and W.E. Steinmueller (2018). “Three frames for innovation policy: R&D, systems of innovation and transformative change”. Research Policy 47.
46. Schmookler, J. (1966). Invention and Economic Growth. Cambridge, Mass., Harvard University Press.
47. Schumpeter, J. (1934). The Theory of Economic Development. Cambridge: Harvard University Press.
48. Silverberg, G. and Lehnert, D. (1994). Growth fluctuations in an evolutionary model of creative destruction. In Silverberg, G. and Soete, L. (ed) The Economics of Growth and Technical Change. Technologies, Nations, Agents. Aldershot: Edward Elgar.
49. Silverberg, G. and Verspagen, B. (1995). “An Evolutionary Model of Long Term Cyclical Variations of Catching Up and Falling Behind”. Journal of Evolutionary Economics 5, 209-227.
50. Solow, R. (1956). A contribution to the theory of economic growth Quarterly Journal of Economics 70, 65-94
51. Tran Van Tho, (2013). The Middle-Income Trap: Issues for Members of the Association of Southeast Asian Nations. ADBI Working Paper SeriesNo. 421. <https://www.adb.org/sites/default/files/publication/156275/adbi-wp421.pdf>
52. Ulku, H. (2002). R&D, Invention and Economic Growth. Brandeis University, The Faculty of the Graduate School of International Economics and Finance. Waltham: Brandeis University.
53. Verspagen, B. (1991). “A new empirical approach to catching up or falling behind”. Structural Change and Economic Dynamics 2, 359-380.
54. Verspagen, B. (1997). Estimating International Technology Spillovers Using Technology Flow Matrices. Weltwirtschaftliches Archiv (133), 226-48.
55. Yang, C. H. (2006). “Is innovation the story of Taiwan’s economic growth?”, Journal of Asian Economics, 17, 867-878.
56. Wang, C. (2013). The Long-rn Effect of Innovation on Economic Growth. UNSW, School of Economics. Sydney: UNSW.
57. Wong, P. K. (2001). “Leveraging multinational corporations, fostering technopreneurship: The changing role of S&T policy in Singapore”. International Journal of Technology Management, 22(5-6), 539-567.
2. Aghion, P., and Howitt, P. (1998). Endogenous Growth Theory. Cambridge, Massachusetts and London: MIT Press.
3. Atkinson, R. D. (2014). “Understanding the U.S. National Innovation System”. SSRN Electronic Journal, 1-27.
4. Aw, B.-Y. (2003). Technology acquisition and development of Taiwan. In S. Lab, & S. Urata, Competitiveness, FDI and Technological Activity in East Asia (pp. 168-190). Cheltenham: Edward Elgar Publishing Limited.
5. Baily, M. N., and Montalbano, N. (2017, December). Retrieved from THE BROOKINGS INSTITUTION: <https://www.brookings.edu/wpcontent/uploads/2017/12/es_20171208_bailyclustersandinnovation.pdf>
6. Barro, R. and Sala Y Martin, X. (1995). Economic Growth. Boston: McGraw-Hill.
7. Băzăvan, A. (2019). “Chinese government's shifting role in the national innovation system”. Technological Forecasting and Social Change, Vol. 148.
8. Bliss, C. (1975). Capital Theory and the Distribution of Income, New York, Elsevier.
9. Bromely, D.A. (2004). “Technology Policy”. Technology in Society 26(2):455-468.
10. Carraz, R., and Harayama, Y. (2016). “Japan’s Innovation Systems at the Crossroads: Society 5.0”. Retrieved from KAS: <https://www.kas.de/documents/288143/4843367/panorama_digital_asia_v3a_Carraz_Harayama.pdf/b57f6b67-f317-cfc5-010c-4ee501c3a398>
11. Chang, H.-J. (2002). Kicking Away the Ladder: Development Strategy in Historical Perspective. Anthem Press.
12. Coe, D. T., and Helpman, E. (1995). “International R&D and Spillovers”. Elsevier (39), 859-887
13. Crosby, Mark. (2000). Patents, Innovation and Growth. The Economic Record. 76. 255-62.10.1111/j.1475-4932.2000.tb00021.x.
14. David, P. A. (1993). Intellectual Property Institutions and Panda's thumb: Patents, Coyrights, and Trade secrets in economic theory and history. In N. R. Council, Global Dimensions of Intellectual Property Rights in Science and Technology (pp.19-61). Washington, DC: The National Academies Press.
15. Denison, E. F. (1967). Why growth rates differ: Postwar experience in nine western countries. Washington: Brookings Institution.
16. Devinney, T.M. (1993). “How well do patents measure new product activity?”. Economics Letters 41 (4), 447-450.
17. Fagerberg, J. (1994). “Technology and International differences in growth rates”. Journal of Economic Literature 32, 1147-1175.
18. Foster, J. and J.S. Metcalfe (2012). “Economic emgergence: An Evolutionary economic perspective”. Journal of Economic Behavior and Organization, 82: 420-32.
19. Fulvio, C. (2006).“Evolutionary and new growth theories: are they converging?” MPRA Paper No. 27602. <https://mpra.ub.uni-muenchen.de/27602/>
20. Grossman, G.M. and Helpman, E. (1991). “Quality ladders in the theory of growth”. Review of Economic Studies 58, 86-91.
21. Hall, Bronwyn and Jaffe, Adam. (2018). Measuring Science, Technology, and Innovation: A Review. Annals of Science and Technology Policy. 2. 1-74. 10.1561/110.00000005.
22. Hasan, I., and Tucci, C. L. (2010). The Innovation-Economic Growth Nexus: Global Evidence. Elsevier (39), 1264-1276.
23. Hou, C.-M., and Gee, S. (1993). National System supporting Technical Advance in Industry: The case of Taiwan. In R. R. Nelson, National Innovation System: A Comparative Analysis (pp. 384-413). New York, Oxford: Oxford University Press.
24. Hu, M.-W., and Schive, C. (1998). “The Changing Competitiveness of Taiwan’s Manufacturing SMEs Ming-Wen”. Small Business Economics, 315-326.
25. Jones, C. (1995). “Time series tests of endogenous growth models”. Quarterly Journal of Economics 110, 495-525
26. Jones, L. E., and Manuelli, R. E. (1997). “The sources of growth”. Journal of Economic Dynamics and Control (21), 75-114.
27. Kalinowski, T., and Cho, H. (2009). “The political economy of financial liberalization and the crisis in South Korea”. Asian Survey, Vol. 49, Issue 2, 221-242.
28. Keck, O. (1993). The National System for Technical Innovation in Germany. In R. R.Nelson, National Innovation System (pp. 115-157). Oxford University Press.
29. Kim, L. (1993). National system of industrial innovation: Dynamics of Capability Building in Korea. In R. R. Nelson, National Innovation Systems: A comparative analysis (pp. 357-383). Oxford University Press.
30. Kurz, H. D. (2012). Innovation, Knowledge and Growth. New York: Routledge.
31. Kuznets S., 1971, Economic Growth of Nations: Total Output, Structure and Spread, Cambridge (Mass), Belknap Press.
32. Lin, K. J., Lu, X., Zhang, J., and Zheng, Y. (2020). “State-owned enterprises in China: A review of 40 years of research and practice”. China Journal of Accounting Research, 31-55.
33. Liu, X., Serger, S. S., Tagscherer, U., and Chang, A. Y. (2017). “Beyond catch-up-can a new innovation policy help China overcome the middle income trap?”Science and Public Policy, 44(5), 656-669.
34. Lucas, R. (1988). “On the mechanics of economic development”. Journal of Monetary Economics 22, 3-42
35. Lundvall, B-Å. (1992). National Systems of Innovation: Towards a theory of Innovation and Interactive Learning. London: Pinter Publishers.
36. Metcalfe, J.S. and John Foster, 2010. "Evolutionary Growth Theory", Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 3, Edward Elgar Publishing.
37. Mowery, D. C. (1994). The U.S. National Innovation System: Origins and Prospects for Change. In D. C. Mowery, Science and Technology Policy in Interdependent Economies (pp. 79-106). Springer, Dordrecht.
38. Nelson, R. and Winter, S. (1982). An Evolutionary Theory of Economic Change. Cambridge: The Belknap Press of Harvard University Press.
39. Nelson, R.R. (1993). National Innovation Systems: A Comparative Analysis. New York and Oxford: Oxford University Press.
40. Odagiri, H., and Goto, A. (1993). The Japanese System of Innovation: Past, Present, and Future. In R. R. Nelson, National Innovation Systems: A comparative analysis (pp. 76-114). New York, Oxford: OXFORD UNIVERSITY PRESS.
41. Ohno, K., 2009. “Avoiding the Middle-Income Trap: Renovating Industrial Policy Formulation in Vietnam”. ASEAN Economic Bulletin, Vol. 26, No. 1, pp. 25-43.
42. Rasiah, R. (2018). Innovation policy, Inputs, and Outputs in ASEAN. In M. Ambashi, Innovation Policy In ASEAN (pp. 277-320). Economic Research Institute for ASEAN and East Asia.
43. Romer, P. (1986). “Increasing returns and long-run growth”. Journal of Political Economy, 94, 1002-1037.
44. Romer, P. (1990). “Endogenous technological change”. Journal of Political Economy 98, 71-102.
45. Schot, J. and W.E. Steinmueller (2018). “Three frames for innovation policy: R&D, systems of innovation and transformative change”. Research Policy 47.
46. Schmookler, J. (1966). Invention and Economic Growth. Cambridge, Mass., Harvard University Press.
47. Schumpeter, J. (1934). The Theory of Economic Development. Cambridge: Harvard University Press.
48. Silverberg, G. and Lehnert, D. (1994). Growth fluctuations in an evolutionary model of creative destruction. In Silverberg, G. and Soete, L. (ed) The Economics of Growth and Technical Change. Technologies, Nations, Agents. Aldershot: Edward Elgar.
49. Silverberg, G. and Verspagen, B. (1995). “An Evolutionary Model of Long Term Cyclical Variations of Catching Up and Falling Behind”. Journal of Evolutionary Economics 5, 209-227.
50. Solow, R. (1956). A contribution to the theory of economic growth Quarterly Journal of Economics 70, 65-94
51. Tran Van Tho, (2013). The Middle-Income Trap: Issues for Members of the Association of Southeast Asian Nations. ADBI Working Paper SeriesNo. 421. <https://www.adb.org/sites/default/files/publication/156275/adbi-wp421.pdf>
52. Ulku, H. (2002). R&D, Invention and Economic Growth. Brandeis University, The Faculty of the Graduate School of International Economics and Finance. Waltham: Brandeis University.
53. Verspagen, B. (1991). “A new empirical approach to catching up or falling behind”. Structural Change and Economic Dynamics 2, 359-380.
54. Verspagen, B. (1997). Estimating International Technology Spillovers Using Technology Flow Matrices. Weltwirtschaftliches Archiv (133), 226-48.
55. Yang, C. H. (2006). “Is innovation the story of Taiwan’s economic growth?”, Journal of Asian Economics, 17, 867-878.
56. Wang, C. (2013). The Long-rn Effect of Innovation on Economic Growth. UNSW, School of Economics. Sydney: UNSW.
57. Wong, P. K. (2001). “Leveraging multinational corporations, fostering technopreneurship: The changing role of S&T policy in Singapore”. International Journal of Technology Management, 22(5-6), 539-567.
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Published
05-01-2021
How to Cite
Lien, N. T., Trung, H. V., & Minh, D. T. (2021). The role of science, technology and innovation in economic growth: a theoretical and empirical review and its implications for Vietnam. Journal SCIENCE AND TECHNOLOGY POLICIES AND MANAGEMENT, 9(4), 1–17. Retrieved from https://vietnamstijournal.net/index.php/JSTPM/article/view/351
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STUDIES OF STRATEGIES AND MANAGEMENT
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