Innovation Catching Up for Developing Countries

Abstract

The main goal of the article is to present the contemporary role of innovation in economic growth. The increasing globalization, information revolution and rapid technological progress are considered to be the most important cause of creating a new competitive landscape. According to the newest growth theories improvement of innovation and human capital have a major impact on the development of the country. Main research problem in the paper was innovation catching up. Author presented the level of innovation for group of countries divided in terms of income. Moreover, article highlighted the strongest and weakest factors of innovation for the poorest countries and areas that should be improved in order to increase their competitiveness. Through innovations developing countries are able to make up for the delay to the developed countries. However, developed countries have a significant advantage. This study did not confirm decrease in the innovation gap between developed and developing countries. Positive is the fact, that poorer countries are becoming more efficient in the innovation process. Although, countries with lower income do not have adequate infrastructure and human capital, and thus do not achieve the significant innovative results. Investments in the innovation-friendly environment should be key area for the state activity. Also important are innovation programs supported by government, like improvement in the framework conditions for innovation and implementation of innovation policies targeting innovation players and relationships between them.