Traditional theories of economic development consider trade and Foreign Direct Investment (FDI) as the main channels for international technology transfer to occur, building up the stock of knowledge and technology of local manufacturing firms in developing countries. While these elements are undoubtedly important, a more holistic understanding is needed of the pathways through which innovation (in product, process, organisation and market) contributes to economic development, and the implications for poverty and inequality.
In exploring how to exploit innovation to lead to both structural change and economic inclusion, or “inclusive structural change”, this unique collaboration between IDS and the Science Policy Research Unit (SPRU) aims to provide a better understanding of innovation pathways that ensure autonomous, sustainable and inclusive growth, along with poverty reduction at scale
The research team will develop conceptual and measurement frameworks, as well as carrying out an extensive review on existing literature on how technology transfer allows technological upgrading in domestic firms, and a review of case studies of technological innovation, structural change and inclusion.
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