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Competences for green development and leapfrogging 263 system. Thus, the latter must be tailored to enhance further innovations. Strengthening environmental regulation must be seen not as a trade-off between environmental protection and economic development within the NICs, but as an instrument of demand side driven innovation policy in one of the most dynamic growing economic sectors. This also calls for integration of the traditional R&D policies with the demand side oriented policies, which are typically performed by different actors—a challenge which is not unique to NICs, but which can be found in almost every OECD country, too. The analysis in this paper relied on various indicators. However, the limits of such an indicator approach have to be kept in mind: the indicators serve as a proxy for both the absorptive capability of the NICs for sustainability innovations and the ability to compete on international technology markets. However, the indicators of technological capability should not be misinterpreted as a proxy for measuring if the country moves towards sustainability. They neither cover the diffusion of the technology nor the contribution of the potentially sustainable technology towards environmental improvement. Thus, this indicator approach does not allow answering the question, whether the incentives for moving towards environmentally friendly production and products are stronger than the incentive stated in the pollution haven hypothesis. More empirical research is needed to come up with answers for this question. The used indicator concepts have been derived from experience within OECD countries for goods with above average technological content. Even though sustainability technologies are typically also having an above average technology content, there still might be a problem that the indicators do not account for innovations which are not internationally patented because of a low propensity to patent in the country/region or because the innovation is taking place in sectors where it is more difficult to obtain patents (e.g. services). There are also missing factors which the indicators cannot account for. Due to the environmental externality problem, the formation of demand depends strongly on environmental policy. Thus, together with the problem of externalities of R&D, environmental innovations face a “double externality problem” (Rennings 2000). Furthermore, especially sustainability innovations are rather often associated with sectors which are subject to economic regulation. Thus, sustainability technologies in these sectors even face a triple regulatory challenge (Walz 2007). This also leads to the conclusion that policy coordination between the different regulatory regimes becomes a major challenge for policy making. However, there is the need for further empirical research to analyze if and how NICs are coping with this challenge. Social factors are another issue which play a very important role, but are not adequately addressed in the indicator approach so far. The importance of innovations in institutions, or knowledge spillovers from other sectors can be added to that list, together with the important aspects of communication patterns within the system of innovation, lock-ins, path dependency, and power structures within industry and politics (Walz and Meyer-Krahmer 2003). Thus, to sum up the argument, indicators can be helpful to give an overview and form a basis for a first assessment of likely strengths and weaknesses of countries, and the resulting (economic) perspectives of leapfrogging in the fields of sustainability technologies. However, they are not able to answer all of the arising
264 R. Walz questions alone. Clearly the use of such indicators must be accompanied by careful interpretations, reflections about the limits of the indicators, and additional analysis on the linkages between the actors in the innovation system, their interactions with the numerous institutions, and the nature of the learning processes taking place. References Abramovitz M (1986) Catching up, forging ahead, and falling behind. J Econ Hist 46:386–406 Amable B, Verspagen B (1995) The role of technology in market shares dynamics. Appl Econ 27:197–204 Andersson M, Ejermo O (2008) Technology specialization and the magnitude and quality of exports. Econ Innov New Technol 17:355–375 Archibugi D, Michie J (1998) Technical change, growth and trade: new departures in institutional economics. J Econ Surv 12(3):313–332 Archibugi D, Pietrobelli C (2003) The globalization of technology and its implications for developing countries—Windows of opportunity or further burden. Technol Forecast Soc Change 70:861–883 Beise M (2004) Lead markets: country specific drivers of the global diffusion of innovations. Res Policy 33:997–1028 Beise M, Rennings K (2005) Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations. Ecol Econ 52(1):5–17 Bell M, Pavitt K (1993) Technological accumulation and industrial growth: contrasts between developed and developing countries. Ind Corp Change 2:157–210 Blind K, Bührlen B, Menrad K, Hafner S, Walz R, Kotz C (2004) New products and services: analysis of regulations shaping new markets. Office for Official Publications of the EU, Luxembourg Cohen W, Levinthal D (1990) Absorptive capacity: a new perspective on learning and innovation. Adm Sci Q 35:123–133 Copeland BR, Taylor MS (2004) Trade, growth and the environment. J Econ Lit 42(1):7–71 Dinda S (2004) Environmental Kuznets Curve hypothesis: a survey. Ecol Econ 49:431–455 Dosi G, Pavitt K, Soete L (1990) The Economics of Technical Change and International Trade, New York Dutt K (2009) Governance, institutions and the environment-income relationship: a cross-country study. Environ Dev Sustain 11(4):705–723 Ecorys et al. (2009) Study on the competitiveness of the EU eco-industry. Brussels October 2009 Ekins P (1997) The Kuznets Curve for the environment and economic growth: examining the evidence. Environ Plann A 29:805–830 Fagerberg J (1994) Technology and international differences in growth rates. J Econ Lit XXXII:1147– 1175 Fagerberg J (1995) User-producer interaction, learning, and competitive advantage. Camb J Econ 19:243–256 Fagerberg J, Godinho M (2005) Innovation and catching-up. In: Fagerberg J (ed) The Oxford handbook of innovation. Oxford University, Oxford, pp 514–542 Freeman C, Soete L (2009) Developing science and technology indicators: what can we learn from the past? Res Policy 38:583–589 Frietsch R, Schmoch U (2010) Transnational patents and international markets. Scientometrics 82(1):185– 200 Gallagher KS (2006) Limits to leapfrogging in energy technologies: evidence from the Chinese automobile industry. Energ Pol 34:383–394 Grossmann GM, Krueger A (1995) Economic growth and the environment. Q J Econ 110:353–377 Grupp H (1998) Foundations of the economics of innovation: theory, measurement, and practice. Elgar, Cheltenham Lall S (1992) Technological capabilities and industrialization. World Dev 20:165–186 Lall S (1998) Technological capabilities in emerging Asia. Oxf Dev Stud 26:213–243 Lee K (2005) Making a technological catch up: barriers and opportunities. Asian Journal of Technology Innovation 13(2):97–131 Lee K, Lim C (2001) Technological regimes, catching up, and leapfrogging: findings from the Korean industries. Res Policy 30:459–483 Lee K, Lim C (2005) Emerging digital technology as a window of opportunity and technological leapfrogging: catch up in digital TV by Korean firms. Int J Technol Manag 29:40–63
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