Innovation policy tools: sub-regional trends and findings

Effective innovation policy supports the innovation eco-system along the entire innovation process. It requires policy tools to support businesses in absorbing existing knowledge and technology, particularly from abroad, something that is very important for small, open, middle-income economies like the six countries covered in this IPO. They are still relatively far from the global knowledge frontier and there are wide productivity differences across companies within sectors. These countries can therefore reap significant productivity gains by adopting and adapting existing state-of-the-art technology and business models.

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