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Theoretical Framework: The Political Economy of Upgrading Regimes

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The Political Economy of Upgrading Regimes: Brazil and beyond

Part of the book series: International Political Economy Series ((IPES))

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Abstract

This chapter introduces the theoretical framework of this book by combining conceptual elements of two institutional approaches to innovation—the innovation system approach and the comparative capitalism framework. Building on these literatures, we develop a theoretical framework named “upgrading regimes” that allows for an encompassing analysis of technological upgrading in emerging economies. This novel framework includes a comprehensive set of supply-side institutions, demand-side factors, as well as political dynamics. One basic theoretical contribution of this book, therefore, consists of synthesizing two theoretical approaches that, thus far, have only rarely been applied together and elaborating on their combined explanatory power.

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Notes

  1. 1.

    Defense Advanced Research Projects Agency, the research and development agency of the United States Department of Defense.

  2. 2.

    USA, Great Britain, Australia, Canada, New Zealand, and Ireland.

  3. 3.

    Germany, Japan, Switzerland, the Netherlands, Belgium, Sweden, Norway, Denmark, Finland, and Austria.

  4. 4.

    France, Italy, Spain, Portugal, Greece, and Turkey.

  5. 5.

    Leaving Luxembourg and Iceland aside due to their small size and Mexico due to its level of economic development.

  6. 6.

    Finance, insurance, and real estate.

  7. 7.

    The terms α and (1-α) denote output elasticities of capital and labor with constant returns to scale. See Klenow and Rodriguez-Clare (2005) and Cirera and Maloney (2017, 51).

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    Michael Schedelik

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Schedelik, M. (2023). Theoretical Framework: The Political Economy of Upgrading Regimes. In: The Political Economy of Upgrading Regimes: Brazil and beyond . International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-34002-4_2

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