Industrial Transformation (Agénor & Dinh)

From imitation to innovation: public policy for industrial transformation by Pierre-Richard Agénor and Hinh T. Dinh published by World Bank (5/2013). “What role does public policy play in helping countries accelerate the industrialization process? This note aims to answer this questions by applying a framework to analyze the process of transitioning from imitation to innovation. Based on a dynamic model of growth, simulations suggest that learning through imitation may enable firms to improve productivity significantly in a first stage, and that this may eventually benefit innovation activity as well…”