Innovation and growth in emerging economies

How does innovation affect economic growth, and how can emerging economies encourage such beneficial innovation? In spite of the solid gains in wealth and standards of living in recent decades in increasing parts of the world [Ahlstrom, 201 O; Maddison, 2006). underdevelopment in many countries remains one of the most significant problems of the 21st century [Bruton et al., 2015; Easterly, 2014; Stiglitz, 20071. Moreover, emerging economies are not catching up to the developed ones as well as is commonly believed. Rodrik [2009] found that before 2000, the performance of the emerging economies did not converge with that of the developed world as the gap in per capita income between them actually widened from 1950 to 2000.