Title:
The State and Innovation Policy in Late Development: Evidence from South Africa and Malaysia
The State and Innovation Policy in Late Development: Evidence from South Africa and Malaysia
Author(s)
Oyelaran-Oyeyinka, Banji
Sampath, Padmashree Gehl
Sampath, Padmashree Gehl
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Abstract
This paper analyses the main institutional mechanisms that foster the emergence and
performance of firms in knowledge-intensive sectors in developing countries. We use the
empirical data collected in 2005 and 2006 in the South African computer hardware and
software sectors and the Malaysian computer hardware sector to illustrate the linkages
between interactive learning and technological capabilities and how state support plays a
critical role in enabling this in the case of knowledge intensive industries. However, as
the analysis in this paper shows, state support is not just implementing a set of policies that succeed elsewhere; it is the ability of the state to set up institutions that reflect a harmony between knowledge and physical infrastructure and the formal and informal
institutional compensations that are important to, and structure the idiosyncratic exchange
processes of developing economies.
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Date Issued
2008-09
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Text
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Proceedings