Innovation, Development, and Globalization Fall 2011
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1 As of September 13, 2011 COURSE SYLLABUS IGA-523 Innovation, Development, and Globalization Fall 2011 Faculty: Calestous Juma Faculty Assistant: Katherine Gordon Office: L-356 FA Office: L-349A Telephone: FA Telephone: FA Office Hours: Teaching Fellow/Course Assistant: Lectures: Mondays and Wednesdays, 10:10 11:30am, TF/CA Contact Info Room RG-20 Review Sessions: TF/CA Course Description The aim of this course is to examine the role of science and innovation in fostering economic growth in developing countries as well as their increased participation in the global economy. This explores diverse approaches for adopting and diffusion new technologies into economic systems. The course is divided into four broad sections. The first section provides a conceptual foundation for understanding the role of technological innovation and the associated institutional innovation in the process of economic transformation. The second section presents country experiences with scientific and technological innovation and institutional adjustment. The third section analyzes the technological opportunities and challenges open to developing countries. The final section assesses the policy and institutional options that developing countries can pursue. Governments around the world are searching for ways to harness the power of science, technology and innovation to foster economic development. Their strategies are being significantly influenced by the forces of globalization. International development agencies are similarly rethinking their approaches in light of the opportunities provided by rapid advances in science and technology. The course seeks to equip students with skills in science and technology policy analysis. The course uses an interdisciplinary approach and emphasizes the importance of teamwork in the design and implementation of science and technology policy. In addition to developing analytical skills, students are expected to strengthen their capacity to work in teams by integrating knowledge from a diversity of sources. Training in the natural or engineering sciences is not a requirement for the course. Students are expected to leverage their previous experiences as relevant or explore new avenues related to their career aspirations. The course is designed to accommodate students from all fields interested in the role of technological innovation in development. The sessions will be conducted through guided discussion as well as lectures, guest speakers and presentations by students. Modest
2 adjustments in the syllabus will be introduced to accommodate specialized interests by students and address important topical issues. Class Participation Class participation is an essential part of the course and students will be required to demonstrate knowledge of the readings and be able to offer a critical assessment of the contents. Students will be asked to lead class discussions and others will be expected to contribute to discussion based on the readings and other relevant sources of information. Students will be expected to participate Grading Class participation (35%) will be evaluated on the basis of: (a) familiarity with the readings; (b) quality of contributions; (c) critical and creative approaches to the issue; and (c) respect for the views of others. Concept notes (20%) of no more than 1,500 words based on the literature covered in class and identification of case material to be covered in the final paper. The aim of the concept note is to lay the groundwork for the final paper and the grading will focus on the extent to which students demonstrate familiarity with the literature and underlying concepts. Policy analysis paper (45%) of no more than 5,000 words covering a conceptual foundation, case material and identification of policy options and their implications. Feedback and deadlines Feedback will be provided to students at the various milestones in the preparation of the policy analysis paper. This will include feedback on issue identification memos, concept notes and draft policy analysis papers. The aim of the feedback will be to ensure that students get sufficient input before they submit their papers for grading. While offering reasonable flexibility, continuous feedback will depend on adherence to deadlines. No further feedback will be provided on the final paper that than the grade unless agreed upon prior to its submission. Projects Topic identification memo This will be one paragraph that identifies the topic that the student plans to focus on during the course. This can be in the form of a particular case study or a theme that provides a basis for the identification of a case study. The aim of the memo is to help in the identification of the relevant literature, case studies and contacts and contacts. Early identification of issues significantly improves the learning process and the quality of the final product. Students may later change their areas of focus as start to work on their concept notes, case studies and policy analysis papers. Where possible, students are encouraged to liaise with external professionals as sources of input, networking and career advice. Concept notes
3 Each student will be expected to produce a concept paper (1,500 words). The papers will serve as a conceptual foundation, framework or background that will be used to analyze a specific theme for the final paper. Students will be expected to demonstrate their knowledge of the literature and its relevance to a specific field of interest they intend to examine in the final paper. Policy analysis papers The final product from the class will be case studies on issues and themes discussed in the class. The focus of the 5,000-word papers will be on institutional reforms needed to support technological innovation. The papers will be divided into the following sections: (a) executive summary; (b) introduction; (c) background to the topic; (c) literature review based on the readings and additional sources; (d) case study serving as an illustration; (e) identification of policy options for action; and (f) references. The papers will be based on secondary sources but students are encouraged to make contacts with practitioners in the field as part of the professional networking. The papers will be prepared individually, or in groups of no more than three, on topics discussed with and approved by Professor Juma. They are expected to demonstrate analytical rigor, familiarity with the literature, coherence in presentation and clarity of the recommendations or policy options as well as their political feasibility. Support may be provided to students seeking to contribute feature articles or opinion pieces to newspapers based on their draft policy analysis papers. Additional support may be provided to those interested in submitting revised papers to scholarly journals for consideration. Case study Students do have the option of undertaking to write a case study on a topic related on technological innovation in substitution of the class presentation. Students may choose to focus on an organization with which they have worked, write or document an event that took place, explore the experiences of a certain individual. Cases generated though class will be used in the future as a reading and reference material for the class. For information on how to write case studies kindly visit Resources In addition to the required readings, students will have opportunities to contacts development professionals associated with the Science, Technology and Globalization (STG) Project. Students will be supported to build international connections with experts in their areas of interest. They will also have access to the STG website which provides links to additional background papers, discussion papers, journals, organizations and conferences. Scholarly journals Professor Juma edits two peer-reviewed journals, the International Journal of Technology and Globalisation and the International Journal of Biotechnology, in addition to serving on the editorial boards of leading innovation journals such as Research Policy; Science and Public Policy; Technovation; International Journal of Technology Transfer and Commercialisation; International Journal of Technology
4 Management and Sustainable Development; and International Journal of Global Environmental Issues. Following the completion of the course, some of the outstanding papers have formed the basis for the preparation of papers that have been published by the authors in peer-reviewed journals. Networking Information on career and networking opportunities will be provided as needed. STG maintains links with numerous international organizations alumni of the KSG executive program on Innovation for Economic Development around the world. Additional contacts are provided through scientific academies such as the Royal Society of London, the US National Academy of Sciences, the Academy of Sciences for the Developing World, the Royal Academy of Engineering, and the African Academy of Sciences. In addition, the course offers opportunities for establishing contacts a wide range of international professionals and institutions working on science, innovation and development. The focus of the network is the enable course participants to explore opportunities for future professional engagement. Course participants will also have the opportunity to recommend guest speakers professional contacts of relevance to the syllabus. Additional networking will be provided through the Agricultural Innovation in Africa (AIA) Project directed by Professor Juma and funded by the Bill and Melinda Gates Foundation.
5 Syllabus Overview UNIT 1: BACKGROUND AND THEORETICA FOUNDATIONS Week One Class #1 Wed., Aug. 31: Introduction Week Two LABOR DAY Monday, Sept. 5 Class #2 Wed., Sept. 7: Innovation studies in history Week Three Class #3 Mon., Sept. 12: Policy analysis Class #4 Wed., Sept. 14: Innovation systems and development Week Four Class #5 Mon., Sept. 19: Technological catch-up Class #6 Wed., Sept. 21: Technology and globalization (Topic identification memos due) Unit 2: EXPERIENCES AND LESSONS LEARNT Week Five Class #7 - Mon., Sept. 26: Infrastructure, innovation and development Class #8 - Wed., Sept. 28: Foreign direct investment Week Six Class #9 - Mon., Oct. 3: Industrial clusters and networks Class #10 - Wed., Oct. 5: Global value chains and innovation Week Seven COLUMBUS DAY Mon., Oct. 10 Class #11 - Wed., Oct. 12: Guest speaker UNIT 3: EMERGING TECHNOLOGICAL OPPORTUNITIES AND CHALLENGES Week Eight Class #12 - Mon., Oct. 17: Technological capacity building and upgrading (Concept paper due) Class #13 - Wed., Oct. 19: Brain drain and international mobility Week Nine Class #14 - Mon., Oct. 24: Information and communications technologies Class #15 - Wed., Oct. 26: Health technologies: saving lives at birth Week Ten Class #16 - Mon., Oct. 31: Health technologies Class #17 - Wed., Nov. 2: Mobile banking Week Eleven Class #18 - Mon., Nov. 7: Agricultural innovation UNIT 4: POLICY AND INSTITUTIONAL INNOVATIONS Class #19 - Wed., Nov. 9: Innovation systems and public policy Week Twelve Class #20 - Mon., Nov. 14: Higher technical training and development Class #21 - Wed., Nov. 16: Technology and business incubation Week Thirteen Class #22 - Mon., Nov. 21: Financing technological innovation (First draft due) THANKSGIVING: Nov ; no classes Week Fourteen Class #23 - Mon., Nov. 28: Science and technology diplomacy Class #24- Wed., Nov. 30: Open Discussion Week Fifteen Class #25- Mon., Dec. 5: Wrap-up and career opportunities FINALIZATION OF PAPER: Wed. December 7 Wed. December 21 (Final paper due)
6 Class Meetings, Readings and Assignments: UNIT 1: BACKGROUND AND THEORETICA FOUNDATIONS Week One Class #1 Wed., Aug. 31: Introduction Much of the policy debate on poverty focuses on relief programs that do not take into account the importance of building endogenous capacity for problem-solving. But technological innovation is emerging as a key factor in boosting economic productivity, raising agricultural productivity, expanding educational opportunities, empowering women, reducing child mortality, improve maternal health, combating infectious diseases, promoting environmental sustainability and enhancing international trade and cooperation. It has also raised issues of global justice that need to be reflected in innovation policy. 1. UN Millennium Project Innovation: Applying Knowledge in Development. Task Force on Science, Technology and Innovation. Earthscan, London, pp Papaioannou, T Technological Innovation, Global Justice and Politics of Development, Progress in Development Studies, Vol. 11, No. 4, pp Week Two Class #2 Wed., Sept. 7: Innovation studies in history The aim of the session is to provide an overall introduction of the course. It will provide a brief historiography of the role of science and innovation in development. The session will start with short introductions by the participants. It will also provide an indicative structure of the final policy paper. 3. Schumpeter, J.A Development, Journal of Economic Literature, Vol. 43, No. 1, pp Nelson, R Economic Development from the Perspective of Evolutionary Economic Theory, Oxford Development Studies, Vol. 36, No. 1, pp Week Three Class #3 Mon., Sept. 12: Policy Analysis None Class #4 Wed., Sept. 14: Innovation systems and development Knowledge flow and the associated institutional organization play a critical role in shaping the pace and direction of economic transformation. This session extends this line
7 of inquiry by presenting the concept of innovation systems. The session examines the characteristics of innovation systems and the important role they play in evolutionary approaches to economic growth. 5. Metcalfe, S. and Ramlogan, R Innovation Systems and the Competitive Process in Developing Economies, Quarterly Review of Economics and Finance, Vol. 48, No. 2, pp Xiwei, Z. and Xiangdong, Y Science and Technology Policy Reform and its Impact on China s National Innovation System, Technology in Society, Vol. 29, No. 3, pp Week Four Class #5 Mon., Sept. 19: Technological catch-up Technological development is largely an expression of the capacity of sections of society to acquire the knowledge and expertise needed to carry out specific tasks. It is therefore a process of learning at the individual, organizational and societal level whose impacts are expressed in the act of technological catch-up. The session examines the process of technological catch-up in the aircraft industry as well as the role of public research institutions in the overall process of economic learning. 7. Mazzoleni, R. and Nelson, R Public Research Institutions and Economic Catch-up, Research Policy, Vol. 36, No. 10, pp Peilei, F Innovation, Globalization, and Catch-up of Latecomers: Case of Chinese Telecom Firms, Environment and Planning A, Vol. 43, No. 4, pp Class #6 Wed., Sept. 21: Technology and globalization Participation in the global economy has become one of the main challenges facing developing countries and small economies in the industrialized countries. Responding to these challenges will involve greater investment in science and technology and continued upgrading of productive facilities. The outcomes are usually a result of interactions between foreign technology and local innovation. 9. Herstad, S.J. et al National Innovation Policy and Global Open Innovation: Exploring Balances, Tradeoffs and Complementarities, Science and Public Policy, Vol. 37, No. 2, pp Fu, X., Pietrobelli, C. and Soete, L The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catchingup, World Development, Vol. 39 No. 7, pp
8 Assignment: Topic identification memos due Week Five UNIT 2: EXPERIENCES AND LESSONS LEARNT Class #7 Mon., Sept. 26: Guest Speaker: Brian Herlihy, Chief Executive Officer, Seacom, Port Louis, Mauritius Infrastructure, innovation and development One of the problems that hinder economic growth in the developing world is the absence of adequate infrastructure. Currently, infrastructure project are designed mainly to provide specific services transport, water, sanitation, energy, telecommunications and research facilities. However, infrastructure development can also be designed as foundation for technological innovation. This session explores the linkages between infrastructure services and technological innovation in economic development using the case of undersea cables. 11. Priemus, H Do Design & Construct Contracts for Infrastructure Projects Stimulate Innovation? The Case of the Dutch High Speed Railway, Transportation Planning & Technology, Vol. 32, No. 4, pp Rouach, D. and Saperstein, D Alstom Technology Transfer Experience: The Case of the Korean Train Express (KTX), International Journal of Technology Transfer and Commercialisation, Vol. 3, No.3, pp [PDF AVAILABLE ON COURSE PAGES.] Class #8 Wed., Sept. 28: Foreign direct investment Foreign direct investment (FDI) is one of the most important mechanisms for international transfer of technology. However, such technological spillovers do not occur automatically and their implications for domestic industrial development are often uncertain. FDI may enhance or erode the local industrial base. This session uses evidence from China and Thailand to analyze the role of foreign investment in technological changes in developing countries. 13. Günther, J. et al Does Local Technology Matter for Foreign Investors in Central and Eastern Europe? Evidence from the IWH FDI Micro Database, Journal of East-West Business, Vol. 15, Nos. 3/4, pp Vargas, M.I Government Influence and Foreign Direct Investment: Organizational Learning in an Electronics Cluster, Critical Sociology, Vol. 36, No. 4, pp Week Six Class #9 Mon., Oct. 3:
9 Industrial clusters and networks The newly industrialized countries are characterized by diversity in development pathways. While some countries have placed emphasis on the creation of large-scale enterprises, others developed though industrial clusters involving corporate networks at all national and levels. This session examines the strengths and weakness of the cluster model and its implications for regional innovation systems. The session uses the examples of the motorcycle industry in China and wine in Argentina to explore the dynamics of clustering and their policy implications. 15. Farinelli, F The Awakening of the Sleeping Giant: Export Growth and Technological Catch-up of the Argentine Wine Industry, International Journal of Technology and Globalisation, Vol. 3, Nos. 2/3, pp Lee, Y.-S. and Tee, Y.-C Reprising the Role of the Developmental State in Cluster Development: The Biomedical Industry in Singapore, Singapore Journal of Tropical Geography, Vol. 30, No. 1, pp Class #10 Wed., Oct. 5: Global value chains and innovation The last decade has been dominated by debates over the role of outsourcing. Much of the discussion has been dominated by concerns over job loss from source countries. This session will examine the technological implications of outsourcing in the context of global value chains. 17. Hätönen, J Outsourcing and Licensing Strategies in Small Software Firms: Evolution of Strategies and Implications for Firm Growth, Internationalisation and Innovation, Technology Analysis & Strategic Management, Vol. 22, No. 5, pp Pietrobelli, C. and Rabellotti, R Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries? World Development, Vol. 39 No. 7, pp Week Seven Columbus Day Mon., Oct. 10 Class #11 Wed., Oct. 12: Guest speaker UNIT 3: EMERGING OPPORTUNITIES AND CHALLENGES Week Eight Class #12 Mon., Oct. 17: Technological capacity building and upgrading Economic growth is associated with accumulation of technological capabilities in enterprises. This session provides examples the dynamics and sources of technological
10 capability development and the role it plays in helping countries adapt to changes in the global trading environment. It examines the theme of capability building as part of the larger enterprise of economic learning, putting emphasis on the role of small and medium-sized enterprises. 19. Fagerberg, J. and Srholec, M National Innovation Systems: Capabilities and Economic Development, Research Policy, Vol. 37, No. 9, pp Bučr, M. et al Backward FDI Linkages as a Channel for Transferring Technology and Building Innovation Capability: The Case of Slovenia, European Journal of Development Research, Vol. 21, No. 1, pp Class #13 Wed., Oct. 19: Brain drain and international skill mobility One of the key features of globalization is the intensity of the mobility of skilled people. This has triggered debates over the presumed loss of expertise from developing countries to industrialized nations. This session examines the so-called brain drain as well as alternative approaches such as brain circulation. 21. Saxenian, A From Brain Drain to Brain Circulation: Transnational Communities and Regional Upgrading in India and China, Studies in Comparative International Development, Vol. 40, No. 2, pp Anas, M. et al Brain Drain of the Scientific Community of Developing Countries: The Case of Sri Lanka, Science & Public Policy, Vol. 37, No. 5, pp Assignment: Concept paper due Week Nine Class #14 Mon., Oct. 24: Information and communications technologies The role of information and telecommunications technologies in development has emerged as one of the most challenging areas of policy reform. The scope of the policy issues being addressed range from the price of existing technologies to the existence of adequate infrastructure in developing countries. This session explores this theme while focusing on the role of broadband internet as well as the policy implications of bundling critical information infrastructure. 23. Picot, A. and Wernick, C The Role of Government in Broadband Access, Telecommunications Policy, Vol. 31, No , pp
11 24. Techatassanasoontorn, A. et al Learning Processes in Municipal Broadband Projects: An Absorptive Capacity Perspective, Telecommunications Policy, Vol. 34, No. 10, pp Class #15 Wed., Oct. 26: Health technologies: saving lives at birth Guest speaker: Dr Wendy Taylor, Special Advisor on Innovative Finance and Private-Public Partnerships, US Agency for International Development, Washington, DC TBD Week Ten Class #16 Mon., Oct. 31: Health Technologies TBD Class #17 Wed., Nov. 2: Mobile banking TBD Week Eleven Class #18 Mon., Nov. 7: Agricultural innovation Raising agricultural productivity for domestic and export markets still remains one of the most challenging tasks in developing countries. Interest in this topic has been heightened by the rise in ecological awareness and consumer safety. This session examines the evolution of agricultural research, with particular emphasis on the long-term implications of advances in agricultural biotechnology for agricultural production. 25. Juma, C Advances in Science, Technology, and Engineering, in The New Harvest: Agricultural Innovation in Africa. Oxford University Press, New York, Chapter 2, pp Juma, C Agricultural Innovation Systems, The New Harvest: Agricultural Innovation in Africa. Oxford University Press, New York, Chapter 3, pp UNIT 4: POLICY AND INSTITUTIONAL INNOVATIONS Class #19 Wed., Nov. 9: Innovation and public policy Designing national and regional policies that promote technological innovation is one of the most critical challenges facing developing countries. The task is compounded by
12 uncertainty on the one hand the pressure to identify patterns that make it possible to adopt viable policy approaches. This session examines the use of evolutionary approaches to in policy-making under conditions of technological uncertainty. 27. Ramstad, E Expanding Innovation Systems and Policy: An Organisational Perspective, Policy Studies, Vol. 30, No. 5, pp Ebner, A Public Policy, Governance and Innovation: Entrepreneurial States in East Asian Economic Development. International Journal of Technology and Globalisation, Vol. 3, No. 1, pp Week Twelve Class #20 Mon., Nov. 14: Universities, innovation and regional development The growing recognition of the role of knowledge in economic development has led to critical reviews of the economic function of universities and other institutions of higher learning. This session examines the role that higher technical training can play in development. Specific attention is placed on university-industry relations as well as the role of universities as engines of community development. 29. Tiffin, S. and Kunc, M Measuring the Roles Universities Play in Regional Innovation Systems: A Comparative Study between Chilean and Canadian Natural Resource-based Regions, Science & Public Policy, Vol. 38, No. 1, pp da Motta, E. et. al University--Industry Interactions in an Immature System of Innovation: Evidence from Minas Gerais, Brazil, Science & Public Policy, Vol. 36, No. 5, pp Class #21 Wed., Nov. 16: Innovation and business incubation Technological innovation is closely associated with the emergence and evolution of enterprises. In this regard, policies that promote the creation of enterprises play a central role in economic development. This session explores the various approaches used to promote business incubation. 31. Grimaldi, R. and Grandi, A Business Incubators and New Venture Creation: An Assessment of Incubation Models, Technovation, Vol. 25, No. 2, pp Dalohoun, D., Hall, A. and Mele, P Entrepreneurship as Driver of a Self- Organizing System of Innovation : The Case of NERICA in Benin, International Journal of Technology Management and Sustainable Development, Vol. 8, No. 2, pp Week Thirteen Class #22 Mon., Nov. 21: Financing technological innovation
13 Financing innovation is one of the most complex challenges facing developing countries. In addition to direct funding to research, venture capital represents one of the most critical inputs into business creation process. This institution, however, is just starting to emerge in developing countries. This session explores its parameters and importance in economic development. It also examples the role private equity in financing the early stages of economic transformation which rely on the use of existing technologies. It suggests that venture capital and its counterparts such as angel investors are a feature of more advanced stages that involving investment in frontier technologies. 33. Ben-Ari, G. and Vonortas, N Risk Financing for Knowledge-based Enterprises: Mechanisms and Policy Options, Science & Public Policy, Vol. 34, No. 7, pp Christensen, J The Development of Geographical Specialization of Venture Capital, European Planning Studies, Vol. 15, No. 6, pp Assignment: First draft due Week Fourteen Class #23 Mon., Nov. 28: Science, technology and international relations Guest speaker Class #24- Wed., Nov. 30: Open Discussion Week Fifteen Class #25 Mon., Dec. 5: Wrap-up and career opportunities FINALIZATION OF PAPER Wed. December 7 Wed. December 21 Assignment: Final paper due
COURSE SYLLABUS IGA-523. Innovation for Global Development Fall Course Description
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