Maloney, William; Rodríguez-Clare, Andrés - In: Review of Development Economics 11 (2007) 4, pp. 665-684
There is a common perception that low productivity or low growth is due to what can be called an "innovation shortfall," usually identified as a low rate of investment in R&D. The problem with this analysis is that it fails to see that a low R&D investment rate may be appropriate given the...