Policy In circumstances where many economies face common negative shocks or where negative shocks in one country are quickly transmitted across borders, it is natural to consider whether coordination can improve outcomes.
Latecomers to industrialisation can achieve considerable local innovation and growth in productivity by adopting already available technology. As the level of  BIS Review 36/2008  7  technology improves, greater R & D investment has to be made, both to adapt available technology and to develop the new technology needed for innovation.