1. Knowledge creation, knowledge exploitation and the global economy - the challenge for developing countries Jan Fagerberg, Centre for Technology, Innovation and Culture, University of Oslo (based on joint work with Martin Srholec and Mark Knell)

2. Potential catch up versus real … Technology gaps: potential for growth through catch-up Actual growth: Catch-up potential + competitiveness Four aspects of competitiveness Technology competitiveness Capacity competitiveness Price competitiveness Demand competitiveness

3. 100 countries in the 1990s: Data and indicators Potential: GDP per capita gap Technology: R&D, patents, publications and ICT Capacity: Education, financial system, governance, Price: Growth in unit labour cost Demand: Growth of world demand (weighted by export composition)

4. Convergence or divergence in GDP per capita?

5. Technology Competitiveness

6. Capacity Competitiveness

7. What explains the change in technology and capacity competitiveness?

8. Price Competitiveness

9. Demand Competitiveness

10. More than one road to success? Regression on growth: Potential catch up important but depends on competitiveness Technology & demand competitiveness explains success of “Asian tigers” (but what about rest of Asia?) Crucial role of ICTs Capacity competitiveness explains (most of) the catch up of new EU members Potential lost: Sub-Saharan Africa?

11. Why Growth Rates Differ? Actual and estimated differences in growth vis-à-vis the world average, 1993-2001