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Title page
Contents
Abstract 2
Acknowledgments 2
1. Introduction 3
2. The nature and direction of innovation in developing countries 4
2.1. Direction of innovation in emerging economies 4
2.2. Nature and direction of URIs in low-income countries 8
3. Appropriateness of technology and the impact of direction of innovation 11
3.1. Theoretical discussions on determinants of the direction of innovation 12
3.2. Importance of direction of innovation and appropriateness of technology 12
4. Drivers of the direction of innovation in developing countries 13
4.1. Open national innovation system: a model of innovation for developing countries 13
4.2. Drivers of direction of innovation in developing countries: innovations from international technology transfer 15
4.3. Drivers of direction of indigenous innovation in developing countries 20
5. The opportunities and challenges of developing countries in the Fourth Industrial Revolution 27
5.1. The worldwide landscape of 4IR technologies: a picture of divergence 27
5.2. Opportunities for developing countries 29
5.3. Challenges for developing countries 29
5.4. Can developing countries leapfrog in 4IR? 31
6. Conclusions, policy recommendations and the role of developing countries in setting global direction of innovation 32
6.1. Summary of main findings 32
6.2. Policy recommendations 33
6.3. The role of developing countries in setting the global direction of innovation 34
Bibliography 37
Table 4.1. Drivers of Under-the-Radar Innovation 23
Table 4.2. Routes of Under-the-Radar Innovation 24
Table 4.3. ST&I policies in selective LICs 26
Table 4.4. Benefitting from participation in training and subsidised rate loans program for formal and informal firms 27
Table 6.1. Top-five economies, by share of LCT exports and income group, 1992, 2002, and 2016 35
Figure 2.1a. International scientific publications in developed countries 5
Figure 2.1b. International scientific publications in BRICS 5
Figure 2.2a. International scientific publications in BRICS without China 6
Figure 2.2b. International scientific publications in China alone 7
Figure 2.3. Evolution of patent applications in BRICS 8
Figure 2.4. Proportion of firms active in innovations, by nature of innovation (left) and by nature of innovation and firm (right) in Ghana 2015 9
Figure 2.5. Proportion of firm's engagement in new to the firm and new to the world product/process innovation in 2015, by nature of innovation, in Ghana... 10
Figure 2.6. Percentage of product innovators with respect to total firms per sector in Ghana//////////// 11
Figure 2.7. Percentage of process innovators with respect to total firms by sector in Ghana 11
Figure 4.1. Model of an open national innovation system (ONIS) 14
Figure 4.2. Importance of foreign sources of knowledge and innovation for formal (blue lines) and informal (red lines) firms in Ghana, 2015 19
Figure 4.3. Proportion of countries of origin of innovations (left) and by nature of firm (right), of technological and management innovations, in Ghana, 2015 21
Figure 4.4. Importance of local sources of information for formal (blue lines) and informal (red lines) Tanzanian firms, in 2015 22
Figure 5.1a. Worldwide distribution of industrial robots 28
Figure 5.1b. Worldwide shipments of industrial robots 28
Figure 5.1c. Shipments of industrial robots - Top 10 countries, % of Asian total shipments 28
Figure 5.2. Estimations of jobs susceptible to automation in developing countries from a technological standpoint 30
Figure 6.1. Chinese universities and public research organizations account for more than 1/5 of the top 500 patent applicants in the AI field 34
Boxes
Box 4.1. M-PESA's diffusion in Africa 16
Box 4.2. Adoption of automation technology in South-Africa's apparel industry 16
Box 4.3. Diffusion of village-scale solar power supply from India to Kenya 17
Box 4.4. Brazilian solution for African countries' mechanical farming: tractor versus Matracas 18
Box 4.5. Innovative adaptations of introduced technologies to fit local needs in Ghana 19
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