[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/tik/inowpp/20210623.html
   My bibliography  Save this paper

An Evolutionary Analysis of Transformative Change in LDCs: the cases of Kenya and Rwanda

Author

Listed:
  • Jan Fagerberg

    (INTRANSIT, Centre for Technology, Innovation and Culture (TIK), University of Oslo)

  • Erika Kraemer-Mbula

    (DST/NRF/Newton Fund Trilateral Chair in Transformative Innovation, the Fourth Industrial Revolution and Sustainable Development, College of Business and Economics, University of Johannesburg)

  • Edward Lorenz

    (College of Business and Economics, University of Johannesburg and Aalborg University Business School, Aalborg University)

Abstract
This paper draws on insights from evolutionary economics to enrich our understanding of the prospects for development in low-income countries. Drawing on analysis Freeman and Perez (1988) of the basis for changes in technological economic paradigms, the paper argues that the current process of digitalization in combination with developments in renewable energy are providing a ‘window of opportunity’ for accelerated economic growth and catch-up in low-income countries. The argument is illustrated with reference to the cases of Kenya and Rwanda both which stand out for their governments’ foresight in pursuing policies designed to promote a transformation based on the opportunities offered by the revolutionary changes in technology from the early to mid-2000s. Transformative change requires innovations in business models, in products and process and in modes of marketing and distribution. Drawing on innovation systems theory, the paper considers to what extent the problems firms face in Kenya and Rwanda in accessing resources in terms of needed knowledge, skills and finance have constrained the development of their innovation capabilities. The paper concludes by assessing the policies governments have enacted in attempting to respond to these constraints.

Suggested Citation

  • Jan Fagerberg & Erika Kraemer-Mbula & Edward Lorenz, 2021. "An Evolutionary Analysis of Transformative Change in LDCs: the cases of Kenya and Rwanda," Working Papers on Innovation Studies 20210623, Centre for Technology, Innovation and Culture, University of Oslo.
    • Handle: RePEc:tik:inowpp:20210623
    as

    Download full text from publisher

    File URL: http://www.sv.uio.no/tik/InnoWP/tik_working_paper_20210623.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Edward Lorenz & Erika Kraemer-Mbula, & Lotta Takala-Greenish & Oluseye Jegede & Tukur Garba & Musambya Mutambala & Timothy Esemu, 2019. "Are African micro and small enterprises misunderstood? Unpacking the relationship between work organisation, capability development and innovation," Post-Print hal-01940597, HAL.
    2. N/A, 2004. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 190(1), pages 8-32, October.
    3. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    4. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    5. Ana Cusolito & Xavier Cirera, 2016. "A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector," World Bank Publications - Reports 24972, The World Bank Group.
    6. Bhimani, Hardik & Mention, Anne-Laure & Barlatier, Pierre-Jean, 2019. "Social media and innovation: A systematic literature review and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 251-269.
    7. Zysman, John & Kenney, Martin, 2016. "The Next Phase in the Digital Revolution: Platforms, Abundant Computing, Growth and Employment," ETLA Reports 61, The Research Institute of the Finnish Economy.
    8. Edward Lorenz & Erika Kraemer-Mbula, & Lotta Takala-Greenish & Oluseye Jegede & Turkur Garba & Musambya Mutambala, 2019. "Are African micro- and small enterprises misunderstood? Unpacking the relationship between work organisation, capability development and innovation," Post-Print hal-02396448, HAL.
    9. Jan Fagerberg & Gernot Hutschenreiter, 2020. "Coping with Societal Challenges: Lessons for Innovation Policy Governance," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 279-305, June.
    10. Cirera,Xavier & Lage,Filipe & Sabetti,Leonard, 2016. "ICT use, innovation, and productivity : evidence from Sub-Saharan Africa," Policy Research Working Paper Series 7868, The World Bank.
    11. Bronwyn H. Hall & Nathan Rosenberg (ed.), 2010. "Handbook of the Economics of Innovation," Handbook of the Economics of Innovation, Elsevier, edition 1, volume 1, number 1.
    12. Jan Fagerberg, 2017. "Innovation Policy: Rationales, Lessons And Challenges," Journal of Economic Surveys, Wiley Blackwell, vol. 31(2), pages 497-512, April.
    13. Stern, Nicholas, 2015. "Why Are We Waiting? The Logic, Urgency, and Promise of Tackling Climate Change," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029189, April.
    14. Demirguc-Kunt,Asli & Klapper,Leora & Singer,Dorothe & Van Oudheusden,Peter, 2015. "The Global Findex Database 2014 : measuring financial inclusion around the world," Policy Research Working Paper Series 7255, The World Bank.
    15. George Adwek & Shen Boxiong & Paul O. Ndolo & Zachary O. Siagi & Chebet Chepsaigutt & Cicilia M. Kemunto & Moses Arowo & John Shimmon & Patrobers Simiyu & Abel C. Yabo, 2020. "The solar energy access in Kenya: a review focusing on Pay-As-You-Go solar home system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 3897-3938, June.
    16. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    17. Erika Kraemer-Mbula & Edward Lorenz & Lotta Takala-Greenish & Oluseye Oladayo Jegede & Tukur Garba & Musambya Mutambala & Timothy Esemu, 2019. "Are African micro- and small enterprises misunderstood? Unpacking the relationship between work organisation, capability development and innovation," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 11(1), pages 1-30.
    18. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caldarola, Bernardo & Grazzi, Marco & Occelli, Martina & Sanfilippo, Marco, 2023. "Mobile internet, skills and structural transformation in Rwanda," Research Policy, Elsevier, vol. 52(10).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    2. Jan Fagerberg & Håkon Endresen Normann, 2022. "Innovation policy, regulation and the transition to net zero," Working Papers on Innovation Studies 20220531, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Gaglio, Cyrielle & Kraemer-Mbula, Erika & Lorenz, Edward, 2022. "The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    4. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    5. Jan Fagerberg & Gernot Hutschenreiter, 2020. "Coping with Societal Challenges: Lessons for Innovation Policy Governance," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 279-305, June.
    6. Haddad, Carolina R. & Bergek, Anna, 2023. "Towards an integrated framework for evaluating transformative innovation policy," Research Policy, Elsevier, vol. 52(2).
    7. Daimer, Stephanie & Havas, Attila & Cuhls, Kerstin & Yorulmaz, Merve & Vrgovic, Petar, 2021. "Multiple futures for society, research, and innovation in the European Union: Jumping to 2038," MPRA Paper 113098, University Library of Munich, Germany.
    8. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    9. Veldhuizen, Caroline, 2020. "Smart Specialisation as a transition management framework: Driving sustainability-focused regional innovation policy?," Research Policy, Elsevier, vol. 49(6).
    10. Dierk Bauknecht & Allan Dahl Andersen & Karoline Dunne, 2020. "Challenges for electricity network governance in Energy transitions: Insights from Norway," Working Papers on Innovation Studies 20200115, Centre for Technology, Innovation and Culture, University of Oslo.
    11. Maria Rabadjieva & Judith Terstriep, 2020. "Ambition Meets Reality: Mission-Oriented Innovation Policy as a Driver for Participative Governance," Sustainability, MDPI, vol. 13(1), pages 1-23, December.
    12. Jan Fagerberg, 2021. "Mobilizing innovation for the global green shift: The case for demand-oriented innovation policy," Working Papers on Innovation Studies 20210422, Centre for Technology, Innovation and Culture, University of Oslo.
    13. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    14. Smita Srinivas, 2020. "Institutional variety and the future of economics," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 13-35, May.
    15. Plantinga, Paul, 2021. "Innovation and the Public Service: Facilitating Inclusive Industrial and Social Development," SocArXiv qcdjg, Center for Open Science.
    16. Ahn, Joon Mo & Lee, Weonvin & Mortara, Letizia, 2020. "Do government R&D subsidies stimulate collaboration initiatives in private firms?," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    17. Dirk Dohse & Sophia Fehrenbacher & Philipp von Carlowitz, 2022. "Potenziale entwickeln und Wissen teilen: deutsche Unternehmen in Afrika [Developing Potential and Sharing Knowledge: How German Companies Can Gain a Foothold in Africa]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(7), pages 563-567, July.
    18. Cirillo, Valeria & Martinelli, Arianna & Nuvolari, Alessandro & Tranchero, Matteo, 2019. "Only one way to skin a cat? Heterogeneity and equifinality in European national innovation systems," Research Policy, Elsevier, vol. 48(4), pages 905-922.
    19. Catalá-Pérez, Daniel & Rask, Mikko & de-Miguel-Molina, María, 2020. "The Demola model as a public policy tool boosting collaboration in innovation: A comparative study between Finland and Spain," Technology in Society, Elsevier, vol. 63(C).
    20. Kaplinsky, Raphael & Kraemer-Mbula, Erika, 2022. "Innovation and uneven development: The challenge for low- and middle-income economies," Research Policy, Elsevier, vol. 51(2).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tik:inowpp:20210623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: H&kon Normann (email available below). General contact details of provider: https://edirc.repec.org/data/tkuiono.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.