Question

1. How should developing countries promote technological innovation in order to generate economic growth?

2. Why are patents crucial to technological lead?

3. In what ways has globalization impacted on technology transfer?

Answer 1

Ans1 there are various ways through which technological innovation can be promoted in developing countries to generate economic growth:

• Programs of cooperation between research and R&D centers should be increased.
• The need to acquire more knowledge in order to understand the role that the human element can play an important role.
• Increasing entrepreneurship.
• Improving education system and skills.
• giving incentives to R&D sector.
• enabling infrastructure
• access to talent
• access to capital
• effective communication

Ans2) Patents are crucial because:-

• Patents promote innovation through the grant of limited monopolies, as a reward for the inventors for the time, effort and ingenuity invested in creating new products and processes. The potential for financial returns adds an incentive. Without incentive provided by patents, private investors may be reluctant to invest, resulting in greater calls on government funding or a failure to develop and exploit new technology.
• Patents stimulate the growth of the national industry because companies that hold patents can attract overseas investment and develop products for export. Profits generated by patent exploitation can be invested in further research and development, which may stimulate commercial and industrial growth.

Ans3) Impact of globalization on technology transfer:

• The increased international competition associated with globalization contributes to overall prosperity, as it strengthens incentives to adopt new technologies and to innovate.
• The global diffusion of knowledge and technology generates positive network effects through cross-pollination, as it enables technology-receiving countries to advance their own research and development.
• It stimulates the spread of knowledge and technology, helping spread growth potential across countries. But interconnectedness per se is not enough. The assimilation of foreign knowledge and the capacity to build on it most often requires scientific and engineering know-how. Investments in education, human capital, and domestic research and development are thus essential to build the capacity to absorb and efficiently use foreign knowledge. It also requires an appropriate degree of protection and respect of intellectual property rights—both domestically and internationally—to preserve the ability of innovators to recover costs while ensuring that the new knowledge supports growth globally.