TITLE:
A Critical View of Innovation in the Context of Poverty, Unemployment and Slow Economic Growth
AUTHORS:
Roberto Kozulj - Fundación Bariloche
KEYWORDS:
Economic Growth Theories, Urbanization, Unemployment Causes, Long-Term Structutal Crisis, Poverty, Dual Society, Innovation
JOURNAL NAME:
Modern Economy,
Vol.2 No.3,
July
29,
2011
ABSTRACT: For the last two decades the study of technical innovation systems has been a regular practice. It has thus become a specific field in which different approaches are constantly emerging. Its importance derives not only from the needs of the productive sector in its search for new markets and opportunities, but also from the fact that the formulation of public policies that will foster growth, employment and income depends on its comprehension. In spite of the efforts made to understand innovation systems as socio-technical systems, emphasis was laid on how to create new market opportunities and improve competitiveness, disregarding a proper understanding of the global dynamics of growth. This was pushed into the background by the belief that only good microeconomic results will lead to good macroeconomic ones. Thus, the complex and eVolutionary perspective of the relationship between urbanization, growth, technological change and macroeconomic structural changes has been ignored. This paper attempts to further explore and analyse this topic by dealing with a series of issues: firstly, the effects of the decline in urban population growth on the use of productive capacity in several important sectors; secondly, structural changes in product composition caused by the saturation of urbanization processes and its effect on the behavior of productive units, and finally, the effects of shorter lifecycles of products on income distribution. The whole perspective is useful to outline the global context in which socio-technical systems develop and the challenges faced when testing their capacity to provide solutions for labor and poverty-related problems.