A dynamic view of technological regime concept: Toward a framework for industrial policies in developing countries

It is beyond dispute that technological change acts as a driver of economic growth. In developing countries where highly suffer from lack of this process, incremental innovation is considered as main source of technology capability building and development. In moving toward this pass and to meet with time pressure of catching up, developing countries acquire the initial required knowledge base through technology absorption from outside sources. On the other hand as development is a lengthy process, it is important that the absorbed knowledge still has the potential of more advancement in future. Therefore a selection instrument with ability of assessing different knowledge base or technologies in a dynamic way is highly attractive for decision makers. In this paper we propose the concept of dynamic technological regime as a selection framework with promising feature of avoiding investment in wrong technologies for developing countries.