Minenko O. O., Panasyuk I. M
Oles Honchar Dnipropetrovsk National University, Ukraine
MODERN RESEARCH OF INNOVATIVE DEVELOPMENT IN THE FIELD OF INTERNATIONAL ECONOMICS
Debates on how best to promote sustainable and inclusive development are incomplete without a full consideration of issues of science, technology and innovation (STI). Access to new and appropriate technologies promote steady improvements in living conditions, which can be lifesaving for the most vulnerable populations, and drive productivity gains which ensure rising incomes.
There are two essential STI issues that need to be tackled simultaneously in the post-2015 development agenda. Firstly, innovation driven growth is no longer the prerogative of high income countries alone, some developing countries have achieved significant economic growth through the creation and deployment of STI capacity. But, this has not been the case for all countries, in particular LDCs. Secondly, STI policy has often been pursued independently of the broader developmental agenda; it is important that STI be integrated into public policy goals, giving particular focus to the nexus between STI, culture, education and development.
Delivering on the full range of amenities which underpin the MDG agenda, requires access to a range of appropriate technologies. Much of the necessary technology is already available in the public domain but accessing and linking them to the required knowledge and skills within countries is neither automatic nor costless. It calls for investments in dynamic capabilities, particularly those thatshape the ability of national stakeholders to uptake and absorb technologies and make improvements in line with local circumstances. This is not a one-way process. Some level of technological capabilities in countries is critical to ensure the provision of these amenities. At the same time, the critical importance of such amenities spans beyond individual countries or regions. In such a case, the international community, has a collective responsibility to ensure the provision of these goods [1].
Within the UN Framework Convention on Climate Change, the new Technology Mechanism established by the Cancun Agreements in December 2010 represents a move towards a more ‘dynamic’ arrangement by fostering public-private partnerships; promoting innovation; catalyzing the use of technology road maps or action plans; mobilizing national, regional and international technology centres and network; and facilitating joint R&D activities. Scaling-up and extending this kind of approach will be a central part of the post-2015 global partnership.
STI serves as a crucial driver of rising prosperity and improved national competitiveness. However, because technological knowledge and skills are cumulative, first mover advantages have created a very uneven global landscape. Connecting local technological needs to international technological opportunities is a particular challenge for many developing countries.
A well functioning STI ecosystemneeds to include, inter alia, political stability and wellfunctioning institutions, educated workforce; sound research and education infrastructure and linkages between public and private innovation actors; enterprises committed to research and development; as well as a balanced intellectual property rights (IPRs) framework. Given that knowledge exhibits several properties of a public good, there is a persistent danger of underinvestment, and policymakers have increasingly sought to improve the incentives to create and transfer knowledge from publicly funded research to enterprises, thereby reinforcing the impact of that research on innovation capacity. But in addition to national strategies, regional and international frameworks including the UN and its agencies, funds and programmes must respond in new ways to ensure that innovation is integrated into national development priorities, particularly in least developed countries (LDCs), where the technological divide is greatest.
Technological change, particularly in developing countries, is not only about innovating at the frontier, but also about adapting existing products and processes to achieve higher levels of productivity as applicable to their local contexts. In this process, the ability of local firms and enterprises to access technological know-how is fundamental to shaping their ability to provide products and services, both of the kind that are essential to improve living standards, and that could also promote growth and competitiveness. This requires investment leading to a gradual increase in productivity and social wellfare.
The question of promoting equitable global economic development has always been seen in conjunction with promoting access to the knowledge base in those countries at the technological frontier. But bridging the technological divide has been an uphill, and for many countries a frustrating, endeavor. However, the experiences gathered over the past few decades, both within countries and at the international level, are valuable in charting a future course. Of these, some of the most essential ones are summarized here.
Governments will find it difficult to raise living standards in a sustained manner, feed their growing populations, keep their children healthy, and protect their environment, if they cannot find better, cheaper and smarter ways of producing goods and bringing them to market [2]. The future holds other challenges where new technologies will be key, particularly where climate change is involved. In both traditional and frontier markets, competition between innovators will be critical to ensure the development of socially useful products and processes at affordable prices. However, for many developing countries, persistent obstacles will need to addressed through a global partnership for development.
The first of these is financing acquisition and innovation. In a large number of developing countries, shallow financial markets often thwart their responses to developmental needs. It remains imperative that the challenge of mobilizing such financial resources for technological development form a significant part of the post-2015 agenda.
The second obstacle is incentives. Where there is a strong market pull, commercial drivers encourage a diversity of approach. However, in addressing some of the key development challenges, market incentives may not be sufficiently strong to drive the necessary innovation. Where markets are not strong, additional approaches are needed to bridge the gap. We see this clearly in the lack of development of new treatments for neglected tropical diseases. But a similar situation may occur with any technology needed to address the needs of poor populations. In a world where the primary incentives for innovation are market-based, the inability-to-pay often translates into an inability-to-access. There is a need for a proactive policy agenda that focuses innovation on the needs of poor populations and makes the products of that innovation more readily available to those who need it.
The third obstacle is information. The issue of access to information has been addressed in The Future We Want [3] and the public-right-to-know is fundamental in engaging all relevant stakeholders in sustainable development.
The World Bank has suggested that such initiatives could be complemented by the Inclusive Innovation Fund (IIF) to support innovators in developing their ideas to the point where they can raise private finance by proof of concept or through prototyping and marketing development. Such Funds are being operated in developing countries at national level, but could be extended regionally or internationally. Given the importance of absorptive capacity in the diffusion and uptake of new technologies in developing and least developed countries, the Climate Innovation Centres piloted by Infodev (www.infodev.org) may prove important in the diffusion of climate smart technologies. In considering the STI framework post-2015 the global partnership for development should consider developing such centres with a broader remit to complement the Inclusive Innovation Fund. Any effective global partnership supporting inclusive development therefore needs to frame development for all as the overall goal. This will need a rebalance of priorities and concerns globally to achieve a paradigm shift where the relevance of cross-cutting issues, such as technology and innovation, is not contestable. Such a new global deal will need fresh thinking, supported by effective policies and instruments in order to provide a roadmap for action. Whether a set of narrowly defined targets will help to accomplish this purpose will need to be debated.
Technological learning and innovation capacity that is critical to enable the provision of essential amenities to all is fundamental to ensuring overall sustainable development. Simply put, a country develops capabilities to innovate, and the absence of such capabilities results in limitations to apply existing technologies in all sectors. Therefore it should be considered as an important international priority in the post-2015 agenda.
Many of the countries that have tremendous constraints in mobilizing financial resources are those that urgently need to build STI capabilities. The international community will have to step in to fill this gap.
There is a need to rethink how best to diffuse existing technologies as well as promote access to new technologies for all. Whether embodied as products or processes or in the form of knowledge transfers, such exchange holds the key for a sustainable and prosperous future for all.
Each of the existing models to promote innovation have had their successes but also their share of difficulties. Efforts to promote a sustainable partnership in the post-2015 agenda should consider the merits and difficulties faced within the current models and see how they can be augmented by the international community to overcome the challenges in promoting STI for inclusive development.
The list of references:
1. Stiglitz J. E. Knowledge as a Global Public Good’ in International Intellectual Property in an Integrated World Economy / J. E. Stiglitz; [F. Abbot, T. Cottier, and F. Gurry, eds.]. – Aspen Publishers, 2007.
2. Science, technology and innovation and intellectual property rights. Thematic Think Piece of the UN system task team on the post-2015 development agenda, May 2012.
3. Electronic resource. – Mode of access: http://www.uncsd2012.org/rio20/content/documents/ 370The %20Future %20We %20Want %2010Jan %20clean.pdf
4. Electronic resource. – Mode of access: http://www.un.org/en/development/desa/policy/untaskteam_ undf/thinkpieces/28_thinkpiece_science.pdf