Sustaining Investment in Innovation in Oil Rich Gulf Countries Amidst Falling Oil Prices
No Thumbnail Available
Authors
Al Sabah, M.J.
Palliam, Ralph
Issue Date
2017
Type
Journal Article
Peer-Reviewed
Peer-Reviewed
Language
Keywords
Alternative Title
Abstract
Oil rich Gulf Countries have identified all forms of sustainability as
key drivers of innovation. Therefore innovating for sustainability is
critical for an economy’s political legitimacy, socio-economic
reputation, and ecological performance. Sustaining investment in
innovation requires an understanding of returns or payoffs accruing
to an investment in innovation. Sustainable development is fraught
with challenges particularly when an economy’s growth is linked to a
single resource. Research and development together with productivity
growth rates have become innovation indicators and continue to raise
questions about their interpretation and implication. In resourceladen rich countries the challenge is further exacerbated by inflows
accruing from benevolent government subsidies. This empirical study
reviews the variables for policy formulation associated with
innovation in the six resource-rich oil countries of the Gulf and
considers its determinants. Negative relationships between resource
abundance and poor economic performance have often been
empirically established, providing support for the “resource curse”
hypothesis. The culture of governance, norms and values that
pervade oil-rich countries become key determinants of their
economic success. The primary purpose of this study is to determine
the factors associated with sustainable innovation in the Gulf and to
address the concerns related to the governance of resources that
necessitate further innovation