Technology acquisition,catching up and competitiveness in Pakistan

The growth trajectories of developed and developing countries arediverging rather than converging as expected from theory. five policy areashave been identified that are crucial for ensuring development efforts succeed,of which a vital area is in innovation promotion and imitation and accelerated orsustained catching up policies. it is generally agreed that positive progress isrequired on all the five policy fronts highlighted above,for there to be sustainedgrowth over long time horizons. against this backdrop,a key concern fordeveloping countries that merits further research in the context of learning bydoing and innovation promotion is: what has been the country's performancewith regard to technology acquisition for purposes of enhancing productivity?has the country been effective in its efforts to acquire the appropriatetechnology needed to boost productivity levels? has the country made effectiveuse of the technology acquired? what market failure(s),if any,are constrainingthe country's ability to acquire the technology and make appropriate use of it?this research addresses these questions in the light of the experience ofpakistan's economy,focusing on the development of the domestic automotiveindustry. the research frames these issues in the context of rent-seeking,political settlements and firm-level efficiency and proposes a framework ofanalysis that allows for an assessment of technology acquisition efforts at thefirm level. © pakistan institute of development economics,2016.