BUILDING NEW BRIDGES BETWEEN the LICS of BRICS K J Joseph CDS Trivandrum

Why BRICS?  Major economies in the South with shared concerns  Long association and also cooperation in the Multilateral forums  Significant capabilities developed during the past leading to  Synergies in capabilities; but yet to be fully exploited  For addressing their own challenges, also for providing an alternative for countries lagging behind

BRICS Context  Wide ranging reforms in the last two decades - But varying returns  Improved growth performance of China and India, where as Brazil, SA and Russia lagging behind  Widening inequalities and achieving broad based development – A common challenge of BRICS  General disenchantment with liberalization in Latin America and Africa in general and B & SA in particular

Recent Trends  Disenchantment with Multilateralism and search for new alternatives including new trade geographies  The focus so far has been on Trade and Investment  But there are obvious limits to Trade and Investment in achieving broad based growth  These limits calls for complementing T&I with building LICS: but studies with strong analytical base and empirical support are missing for providing policy guidance  The Role of LICS is yet to receive the attention that it deserves

LICS in the BRICS  Broad approach of NSI framework is eminently applicable to wide range of countries and situations  Yet the concept of NSI is based on empirical work in developed countries backed by well developed institutional and infrastructure support  Hence NSI is expost in developed countries where as ex ante in developing countries leaving the focus on system construction and promotion

NIS: A Southern Perspective  While there is the need for system construction, the developing countries have evolved substantial capabilities over the years  This is especially true of BRICS  But the achievements are not broad based and remains as enclaves of excellences  Towards addressing the challenges there is the need for  An understanding of the inducement mechanisms, focusing devices along with the processes, outcomes & Challenges

Southern NIS?  Induced by the necessity to develop basic production capabilities : greater focus on Know how and less on know why  Combined outcome of the interaction between DUI and STI Mode: technology import and adaptive R&D  Outcome has been incremental in contrast to radical innovations  Driven by state as the market mechanisms have been under-developed and the pubic sector playing important role.  Confined to select manufacturing industries 

Challenges  Evolving a vibrant Innovation system while integrating with the world market  Changing IPR Regime and its Implications  Participation in R&D Outsourcing & implications  Addressing the emerging need for new skill sets  Developing capabilities in emerging new technologies like ICT and harnessing such technologies for achieving broad based development.