Pathways of Technological Change in Developing Countries: Review and New Agenda

Abstract

This article argues the need for strategic reorientation with regard to the technological advancement of developing countries. The continued relevance of incremental capability‐building strategies in manufacturing is questioned by: (i) the emergence of new knowledge areas, some of which require closer links with science; (ii) recognition that past strategies have not solved the poverty problem; and (iii) unprecedented environmental problems that cannot be solved by existing Western technologies alone. A more pluralist approach is recommended, with increased attention to creative innovation capabilities. Cases of innovations in information communication technology, health and energy show potentially large economic and social impacts, but also highlight systemic obstacles to their realisation.