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Traditionally, government and business had few incentives to actively collaborate. For the most part, government regulated business, and business lobbied government on areas of economic interest. When partnerships did occur, they were usually undertaken to invest in large infrastructure projects through formal contractual agreements (Rosenbaum, L., Van Buren, E. and Mennel, J., 2013). With the growing complexity and diversity of socio-economic challenges, the nature of public-private collaborations has seen a fundamental change. Both sides realized that business problems are now government problems—and vice versa—and both are proactively intensifying new approaches to forging partnerships at the highest levels. Consequently, public-private dialogues (PPD) as a form of institutional arrangements have been pivotal in stimulating reform activity and improving a country's investment climate. Against this backdrop, this study explores the key tenets of successful public-private dialogues and its importance in the overall development of an economy in its first chapter. This chapter also seeks to study the various challenges associated with PPDs to caution against their poor administration and consequent threat to diminish the anticipated public good.

Innovation and technology absorption are now firmly recognized as one of the main sources of economic growth for emerging and advanced economies alike. That is why innovation is seen as a possible catalyst for revitalizing post-transition economies hit hard by the recent financial and economic crisis.Is government intervention needed to foster innovation in post-transition economies? This is the central question to which this book responds. The answer is yes, but a qualified yes. Innovation activities are rife with market failures that tend to hold back private investment. And badly designed o

Green innovation can become a new driver of growth. It can spur economic growth by (a) enhancing productivity in traditional industries by reducing the energy use and lessening the environmental impact; (b) expanding new green industries, such as renewable energy, clean cars, and waste management; and (c) leapfrogging current technology to give rise to new industries. The Chinese government is hopeful that green innovation will substantially enhance growth, and this study explores that potential. The study analyzes a few specific sectors in which China has varying levels of advancement: wind, solar, and energy storage. These sectors have been chosen on the basis of (a) their central role in China's ability to meet its green growth and greenhouse gas (GHG) reduction goals, (b) China's continuing large public investment into innovation in these sectors, and (c) the expected availability of data to use in the analysis, including outputs such as patenting and inputs such as public and private investment in research and development (R&D). The government plays an essential role in establishing a conducive environment for green innovation. Given the high fixed costs associated, green sectors are even more dependent on the public sectors and favorable regulatory regimes. The recommendations provided in in this study aim to provide China with more comprehensive support for select green sectors.

Innovation and cross-border absorption of knowledge are central forces behind economic convergence and sustained growth. Absorption of technology is a necessary step to promote the development of human capital and the productive base, paving the way for innovations at the global knowledge frontier. Research and development, patents, trade, and foreign direct investment are major channels of technological absorption, allowing diffusion of new ideas and manufacturing best practices among countries and firms. These channels constitute the central focus of this study. This study uses patent databases, surveys of enterprises, and case studies to investigate how specific channels of absorption molds decision making about technology. Trade and FDI flows show considerable promise as catalysts for the region to upgrade its technology and near the global technology frontier. Econometric analysis using enterprise surveys from all Europe and Central Asia countries helps to understand the conditions and policies that induce firms to incorporate external knowledge and technology into their overall growth strategies.

Front Cover -- Contents -- Foreword -- Acknowledgments -- About the Authors -- Abbreviations -- Overview -- Introduction -- The innovation imperative for developing East Asia -- The state of innovation in developing East Asia -- Heterogeneity of innovation capabilities within countries, sectors, and firms -- Why diffusion matters -- What inhibits innovation? -- Spurring innovation in developing East Asia: Directions for policy -- Final remarks -- Notes -- References -- 1 The State of Innovation in Developing East Asia -- Introduction -- Defining innovation -- The innovation imperative for developing East Asia -- Innovation performance in developing East Asia -- Road map for this report -- Notes -- References -- 2 Conceptual Framework and Stylized Facts -- Introduction -- Key concepts -- Importance of innovation and diffusion of technology in addressing the region's challenges -- Core elements for designing policies that accelerate technology adoption and diffusion -- Conclusions -- Notes -- References -- 3 Technology Adoption and Diffusion: A Firm-Level Perspective -- Introduction -- Is East Asia converging with, or diverging from, the technological frontier? Why diffusion matters -- Heterogeneity in the pattern and diffusion of innovation across space, sectors, and firms -- What inhibits innovation? -- Conclusions -- Annex 3A The Firm-level Adoption of Technologies survey -- Annex 3B Supplementary tables -- 1396927554 -- Notes -- References -- 4 Skills and Finance for Innovation -- Introduction -- Skills for innovation -- Finance for innovation -- Conclusions -- Notes -- References -- 5 Innovation Policies and Institutions in the Region: An Assessment -- Introduction -- Are policies coherent with the objective of supporting diffusion as well as invention? -- Agencies to support innovation.