South-South Cooperation for Industrial Development

Abstract

Industrial development remains a critical challenge for the countries of the South.

In this paper, we explored the potential for South-South cooperation as a strategic tool to support industrial development in developing countries. Underscoring, the critical role of technological knowledge, innovation and marketing know-how as critical determinants for productivity and competitiveness in today's liberal economic and political environment, we argued that the traditional government-centered model of South-South cooperation requires a serious rethinking. Our argument is in favor of promoting institutional and business-to-business linkages and alliances aimed at enhancing cooperation for acquisition and assimilation of knowledge, and upgrading of technological capabilities towards creating competitive advantages. As such, the objectives of South-South cooperation needs to re-orient towards the formation of cross-border inter-firm alliances for increased participation in global value-chains and enhanced collaboration in research and development (R&D) targeted towards strategic areas for the South such as agriculture biotechnology, agro-processing, public health and environment.

Keywords: South-South cooperation, Industrialization, innovation, intellectual property, trade, value chains

JEL Classification: F2, F15, F23, F42, H77, L52, O14