KNOWLEDGE, CAPABILITIES AND THE POVERTY TRAP: THE COMPLEX INTERPLAY BETWEEN TECHNOLOGICAL, SOCIAL AND GEOGRAPHICAL FACTORS
Jan Fagerberg and Martin Srholec
Abstract: This paper explores the possibility that technological capabilities, to lead to development, need to be accompanied by a broader set of “social capabilities”, reflecting not only the
quality of governance but also the spread of values, beliefs and institutions that encourage members of society to actively contribute to the development process. To investigate this issue, a set of empirical indicators, reflecting the capabilities that have been emphazised in the literature as being important for development, was identified.