Avoiding the middle income trap: Indigenous innovative effort vs foreign innovative effort

Discussion Papers


by Byeongwoo KANG, Kaoru NABESHIMA, and Fang-Ting CHENG

March 2015


This paper investigates how innovation potential of a country contributes to avoid or escape the middle income trap. We measure innovation potentials of 77 countries from 1975 to 2010 from patent data. Then, we test whether indigenous innovative efforts or foreign ones help avoid and escape middle income traps

Keywords: middle income trap, innovation, duration model
JEL classification:  O40, O30, C41

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