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ItemSocial Capability Deficits and Productivity Behaviour of African Entrepreneurs: Evidence From Lesotho Garment Producers(Georgia Institute of Technology, 2009-10-08) Na-Allah, Abdelrasaq Al-Suyuti ; Muchie, MammoDespite attempts to induce regional competitiveness in industrial manufactures, poor productivity performances continue to plague the ability of African entrepreneurs to compete successfully in international markets. While many plausible explanations can be put forward to explain this failing, we argue in this paper that an analysis of the social and institutional context within which these entrepreneurs are embedded can provide us with useful insights into why they have continued to lag behind in efficiency performance. Adopting the technological catch-up framework proposed by Moses Abramovitz, the paper uses the case of Lesotho garment producers to show how an environment characterised by significant social capability deficits inhibits the ability of resident producers to operate atop their technically feasible efficiency region. Specifically, estimates from stochastic production frontier specifications show that inadequate business support physical infrastructural service deliveries as well as weak national infrastructure of financial intermediation that constrains business access to credit are positively and robustly associated with inefficiency scores of sampled plants. This case thus provides us with a useful example of how the role of African entrepreneurs vis-à-vis technological adoption continues to be shaped by the social and institutional context they face.
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ItemNeighbourhood System of Innovation: South Africa as a regional pole for economic development in Africa(Georgia Institute of Technology, 2009-10-08) Kraemer-Mbula, Erika ; Muchie, MammoThe innovation systems literature has provided a useful framework to analyse the linkages of firms and other organisations with both domestic and foreign actors. Although the concept of innovation systems was originally developed at the national level (Freeman, 1982; Nelson & Winter, 1982; Lundvall, 1985; Nelson, 1988, etc), the literature has expanded rapidly over the years. Since its origins innovation systems have been defined at different levels. National, regional, local, sectoral and technological systems of innovation now constituted alternative units of analysis to better understand the processes of creation, diffusion and use of knowledge. These different views, rather than conflicting, tend to complement each other and depend on the attributed boundaries to the system subject of analysis. This paper proposes that the reciprocal interaction between regional economic poles within the developing regions can be studied by employing systems of innovation perspective. The application of the systems of innovation perspective serves as a window to explore the quality of interactions in economic, education, productive activities and institutions. The importance of the regional dimension in stimulating the innovation capability and competitiveness of firms and regions has been examined by many authors (Asheim et al., 2003: Cooke, 2003, Wolfe, 2003, Malmberg and Maskell, 2002). The regional dimension is acquiring more relevance as the interactions between actors within the region become more intense. In the context of Africa, for example, the emergence of South Africa as an economic outlier in the region has created new challenges both opportunities and dangers for the rest of Africa. This paper suggests that a systems’ of innovation perspective might be useful to examine how South Africa, as a regional pole in Africa, interacts with the region by sharing knowledge, learning and capacity building. The system of innovation perspective is likely to expose the type of connections and interactions that take place: active or passive (Viotti, 2001). If the interactions take place on the basis of static comparative advantage where the economies in the region transact what they already produce, then the relationship is likely to be non‐dynamic and non‐transformative (passive). If the interaction takes place with economic linkages where the interaction promotes learning, innovative productive exchange, facilitate value added manufactures and service exchanges, then the relationship is likely to be transformative and is more likely to include developmental features (active). South Africa's economy, as a major player in sub‐Saharan Africa, is often seen as a potential growth engine for the continent. South Africa’s growth is believed to have a significant impact on the growth of other African countries, particularly its most immediate Southern African neighbours. Increasing trade partnerships, political collaboration, business linkages and mobility of people, point in this direction. However, the degree of penetration and the nature of the impact have not yet been largely examined in the literature, partly due perhaps to the complexity and wide range of factors that can be taken into consideration. South Africa is not only the largest economy in Africa but also the most technologically advanced. The innovation system in South Africa has evolved extensively, especially since the mid 1990s. In a relatively short period of time, South Africa has managed to frame numerous policies and institutions to accelerate domestic innovation and technology development as well as improve the absorption of imported technologies. Unfortunately this is not the case for most African countries, where adequate systems of innovation are still at an early stage of development. Therefore, the impact of South Africa’s innovation system in other African countries needs to be taken into consideration. Technologies cross national boundaries through many channels, ranging from traded products to information provided by foreign buyers and suppliers, mobility of skilled labour, informal contacts and different forms of investment abroad. Growing trade relationships and investment portfolio of South Africa in the rest of Africa could thus have an effect on the financial and technological linkages with its African partners. In a similar fashion, South Africa’s leadership role in African political partnerships and economics agreements could serve as a platform for collaboration in the establishment and harmonization of innovation systems. Nevertheless, despite the great support that South Africa has received from the international community (mainly from industrialised countries), the ‘emerging power’ of South Africa in an African context has raised voices of scepticism in the acceptance of its leadership in the continent. The extent of the impact during the last decades needs to be carefully measured according to South Africa’s particular history. During the pre‐1994 apartheid South Africa’s economic and political presence in Africa (and the rest of the world) was limited by a period of sanctions. Therefore “real” impact can only be examined after the mid 1990’s. This chapter tackles with these issues, examining a variety of factors related to South African economic and innovation systems as well as their dynamics, detecting opportunities and major future threats for other African economies. In the view of increasing socio‐economic interactions within developing regions, this issue requires particular attention in research studies.
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ItemHow similar or different are policies to foster learning and innovation in Developing Countries and Transition Economies? To what extent can actors and their interaction differ between innovation systems in these economies?(Georgia Institute of Technology, 2008-09) Muchie, Mammo
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ItemTowards a unified conceptualisation of innovation systems(Georgia Institute of Technology, 2008-09) Baskaran, Angathevar ; Muchie, MammoIn this paper an attempt will be made to identify what has been explicitly recognised as central and peripheral within the systems of innovation concept; the inclusion or exclusion of the factors that are important in understanding the political economy of innovation systems; the themes, issues and range of actors and spaces that must be included in NSI types of appreciative theory or modelling. We suspect that those who focus narrowly tend to exclude important variables that must be included in the understanding of the making and development of innovation systems. Conversely those who focus broadly may include factors that may not be helpful in creating clarity of conception and understanding of the innovation systems application to the problems and challenges of development. It is thus important to reflect and review the variety of ways the system of innovation has been used by the economists who have used the NSI perspective in their search to develop alternative frameworks to understand the problems and challenges of economic system dynamics in general and economic development in particular. We will probe how the search for an alternative economic framework for economic development through the NSI perspective have been applied with a view to advance an argument for its judicious application as an intellectual conceptual tool to help understanding and explanation of the problems and challenges of development and underdevelopment. A unified conception of systems of innovation that includes not only history and culture but also the critical political factor that closely impinges and shapes policies on the economics of innovation will be attempted with a view to valorise the explanatory analytical power of the NSI framework in the context of its value in generating new insights, practices and applications to the general problem of economic development.
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ItemThe Impact of the National Innovation Systems on the Flow and Benefits of Foreign Direct Investment to National Economies(Georgia Institute of Technology, 2006-10) Baskaran, Angathevar ; Muchie, Mammo