About this event

Growth and development success stories are often linked to new technological waves and innovation success. Green technologies emerge as a new technology category in which innovation quality in Emerging and Developing Economies (EMDE) is relatively high in terms of the value of knowledge spillovers they generate. This suggests that further R&D investment in developing-country green-tech R&D could be growth-enhancing. How could this be funded? We show that the highest-impact developing-country innovations are typically those produced in collaboration between developing-country innovators and firms or innovators in High-Income Countries (HIC). We then show that the world?s leading R&D firms, though involved in over 20 percent of EMDE innovation, conduct only a negligible fraction (about 2%) of their innovation in EMDEs. We provide evidence that they could increase their R&D in developing countries with benefits both in EMDEs and in HICs through higher knowledge spillovers. Indeed, our results suggest an optimal diversification share above 30%. This provides a self-interested rationale for HIC governments to support such activities, for instance via tax breaks, or for development banks to co-invest in them.

Participants are expected to adhere to the Events Code of Conduct.

This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.