Capability accumulation patterns across economic, innovation, and knowledge-production activities

Abstract

AbstractThe evolution of economic and innovation systems at the national scale is shaped by a complex dynamics related to the multi-layer network connecting countries to the activities in which they are proficient. Each layer represents a different domain, related to the production of knowledge and goods: scientific research, technology innovation, industrial production and trade. Nestedness, a footprint of a complex dynamics, emerges as a persistent feature across these multiple kinds of activities (i.e. network layers). We observe that, in the layers of innovation and trade, the competitiveness of countries correlates unambiguously with their diversification, while the science layer shows some peculiar features. The evolution of the scientific domain leads to an increasingly modular structure, in which the most developed countries become relatively less active in the less advanced scientific fields, where emerging countries acquire prominence. This observation is in line with a capability-based view of the evolution of economic systems, but with a slight twist. Indeed, while the accumulation of specific know-how and skills is a fundamental step towards development, resource constraints force countries to acquire competitiveness in the more complex research fields at the expense of more basic, albeit less visible (or more crowded) ones. This tendency towards a relatively specialized basket of capabilities leads to a trade-off between the need to diversify in order to evolve and the need to allocate resources efficiently. Collaborative patterns among developed countries reduce the necessity to be competitive in the less sophisticated research fields, freeing resources for the more complex ones.