A systemic perspective in understanding the successful emergence of non-traditional exports: two cases from Africa and Latin America
Michiko Iizuka & Mulu Gebreeyesus
#2012-052
Due to recent revival of interest on industrial policy, there have been
many attempts to design policy tools to facilitate the successful
emergence of new industry, which in turn may help developing countries
to transform structurally to a developmental path. Often, however, the
existing policy framework lacks the systemic and dynamic perspective of
industry. In this context we consider the 'function of innovation
system' to be a useful policy tool and have therefore adapted the
framework to analyse two cases from developing countries. We investigate
the Ethiopian flower industry and the Chilean salmon industry, both of
which are successful cases of non-traditional agricultural exports. This
comparison enables us to identify the emerging sequence and content of
functions at the 'formative' and 'growth' phases of industry for
developing countries. These are significantly different from those of
developed countries. The identification of such characteristics, based
on the 'functions of innovation system' framework, should support
effective policy interventions in other developing countries.
JEL classification: O13, O25
Keywords: Non traditional export, function of innovation system, developing countries, agriculture, self-discovery
