ABSTRACT

In this chapter, the author examines innovation linkages in East Asian countries and draw implications for growth strategies in the East Asian region and in the United States. He discusses the “innovation backward linkages” of the ith sector as the increase in productivity growth in this sector that results from productivity growth in other sectors. “Innovation forward linkages” refer to the effect of productivity growth in this sector on productivity growth in other sectors. The author explores the properties of innovation linkages are examined from the following two perspectives. He analyses whether a balanced growth policy is more conducive to the promotion of innovation than an unbalanced one. After the unbalanced growth strategy is selected, the specific targets of the growth strategy should be identified. Innovation-promoting multi-regional growth strategies can be derived from the estimates of an innovation flow matrix in a target region.