Abstract:
The paper focuses on the response strategies of public research
systems in various advanced developing countries (Brazil, India and
Korea) to specific challenges paused by increasing integration of their
respective host economies with rest of the world. These challenges have
dented holes in the traditional support mechanisms for supporting such
public R&D projects. The traditional support mechanisms had two
integral components: (i) supporting the organisation and conduct of
these public R&D projects through the provision of targeted research
grants and other fiscal incentives; and (ii) providing an assured market
for the output of these R&D projects through subscription to public
technology procurement. Admittedly increasing deregulation and
economic liberalisation meant that it has become very difficult to continue
support public R&D projects through these traditional support
instruments. The new international governance rules imposed by
multilateral agencies such as the WTO on R&D subsidies and government
procurement have added further constraints. Most developing countries,
consequently, cop out while a few have managed to put in place, albeit
through an iterative process, ingenious support instruments that can
continue to facilitate such public R&D projects. The paper surveys these
various ingenious, but credible instruments that serve as an important
lesson for other developing countries which are in exactly the same
situation. In short the paper focuses on practical policy concerns that
can easily be replicated elsewhere in the developing world.
