Knowledge Production and Economic Development: Empirical Evidences

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Knowledge Production and Economic Development: Empirical Evidences Thiago Caliari 1 & Tulio Chiarini 2

Received: 18 July 2016 / Accepted: 5 December 2016 # Springer Science+Business Media New York 2016

Abstract This paper throws some light on the relationship between domestic knowledge production and economic development for a group of countries in different periods of time. In particular, this article presents a statistical analysis using the Qualitative Comparative Analysis (QCA) method and corroborates that there is a strong relationship between economic development and the domestic capacity to produce new knowledge. We use as a proxy for domestic knowledge production the patent application by residents and the metric of income level used was the GDP per capita. We show that an increase in the stock of knowledge produced by residents is an important policy to generate income in an economic system once residents are able to appropriate the gains for the use of this new knowledge. Accordingly, there is a dual effect: Knowledge stock growth has a positive impact on GDP, and GDP growth leads to increases in resources to be used for new knowledge generation. In times of global value chains and capital mobility, incentivizing creative imitation, absorption, and production of new knowledge seems to be a valid strategy for less industrialized countries. Keywords Economic development . IPR . Innovation system JEL Classification O14 . O25 . O34

* Tulio Chiarini [email protected] Thiago Caliari [email protected]

1

Aeronautics Institute of Technology, Praça Marechal Eduardo Gomes, 50, Vila das Acácias, São José dos Campos 12228-900 Sao Paulo, Brazil

2

National Institute of Technology, Instituto Nacional de Tecnologia (INT), Av. Venezuela 82 - Praça Mauá, Rio de Janeiro 20081-312 Rio de Janeiro, Brazil

J Knowl Econ

Introduction Intellectual Property Rights (IPRs) allow companies to maintain their market power on one hand, but on the other, they create incredible barriers to learn from copying and from reverse engineering for catching-up companies in less industrialized nations, hindering their development, which on its turn is associated with creative imitation and absorption (Archibugi and Filippetti 2010). IPRs were intensified worldwide from the 80s and 90s, when we witnessed a process of trade liberalization and an intensification of companies’ integration into the global economy. This period coincided with the phenomenon of outsourcing and the emergence of global value chains which represents a reorientation of multinational companies’ strategies (Gereffi 1999), and has different impacts on different national economies. Along with the distribution of productive activities by multinational companies (what is called production fragmentation), there is also the distribution of R&D activities on a global scale; however, they are still pretty much concentrated in developed nations—that is, the USA, Japan, and (east) Europe (Chesnais 1996; Chesnais 2010). The distribution of tangible and intangible inp