Innovation and Public Goods: Implications for Policymaking and Economic Development
Corona, Juan Manuel
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Based on recent findings of an empirical study (Dutrénit, et al, 2011) funded by the Mexican Ministry of Economy, this paper examines the nature of innovation in developing countries (emphasizing the case of México) and the role of public goods in promoting private innovation. On the side of Science, Technology and Innovation Policy (STPI), this paper discusses the efficiency of the policymaking process when policymakers take decision on supporting innovation under a fuzzy and narrow concept of innovation activities and when the role of innovation in public goods is not well defined. The paper argues that for a better understanding of the nature of innovation and its economic and social impacts, the concept of innovation should be widened in order to include innovations in public goods and those innovations unrelated with R&D, innovations that can be very incremental but with significant effects in local terms.
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