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Cambridge Journal of Economics Advance Access originally published online on January 10, 2007
Cambridge Journal of Economics 2007 31(5):669-690; doi:10.1093/cje/bel045
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© The Author 2007. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Inadequacy of technology and innovation systems at the periphery

Eduardo da Motta e Albuquerque*

* Cedeplar-UFMG, Brazil

Address for correspondence: Cedeplar-UFMG, Rua Curitiba 832 sala 809, Belo Horizonte (MG), CEP 30170-120, Brazil; email: albuquer{at}cedeplar.ufmg.br

Inadequacy of technology is a child of structuralism; the concept of a national system of innovation (NSI) is a child of evolutionary theory. A dialogue between these concepts can enrich our understanding of the problems involved in building NSIs at the periphery. Celso Furtado explains the structural roots of modernisation–marginalisation polarisation and how the orientation of technology of underdeveloped countries is embedded in income concentration. The formation of welfare states at the periphery provides NSIs with a new ‘focusing device’, helping to break the marginalisation side of the process. The combined formation of NSIs and welfare systems is an institutional response to modernisation–marginalisation polarisation.

Key Words: Structuralism • Evolutionary theory • National innovation systems • Welfare systems • Celso Furtado

JEL classifications: B29, O30

Manuscript received June 20, 2005; final version received October 20, 2006.


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