6.5 Financing research to increase TFP: Economic Report on Africa 2007
6.5 Financing research to increase TFP: Economic Report on Africa 2007
is in research. The majority of African countries, since the demise of diversification
gain resorted to relying on factor accumulation as the main source of economic
growth. Yet, historical and empirical evidence has shown that the industrialized and
NIEs were able to achieve development leaps when dramatic changes in TFP took
place. As this report has shown, a link exists between economic growth and diversification
through TFP. However, improvements in TFP are almost always a manifestation
of innovation in a given economy. Financing research and development stands out as a clear way in which African countries could improve the level of innovation
and hence raise the level of TFP contribution to economic growth. This would then
enable these countries to reap maximum benefits from their diversification efforts.
65 Financing research to increase TFP Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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The other major area in which new economic policies for diversification are required
is in research. The majority of African countries, since the demise of diversification
gain resorted to relying on factor accumulation as the main source of economic
growth. Yet, historical and empirical evidence has shown that the industrialized and
NIEs were able to achieve development leaps when dramatic changes in TFP took
place. As this report has shown, a link exists between economic growth and diversification
through TFP. However, improvements in TFP are almost always a manifestation
of innovation in a given economy. Financing research and development stands out as a clear way in which African countries could improve the level of innovation
and hence raise the level of TFP contribution to economic growth. This would then
enable these countries to reap maximum benefits from their diversification efforts.
65 Financing research to increase TFP Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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