Moreover, the rents needed to fund technical change can equally come from the effective protection of intellectual property rights. A recent OECD publication, “Economic Policy Reforms: Going for Growth 2007” (OECD, 2007e), finds that stronger competition has particularly powerful effects on productivity in countries far away from the technological frontier, reflecting stronger incentives to adopt new technologies. Finally, Bigsten et al. ( Particularly where trade is accompanied by foreign direct investment, it is likely to promote the transfer of skills and of innovation. Beyond this direct transfer of technology embodied in trade, or as spillovers from trade (Nordas et al., As the experiences of newly industrialised economies in Asia has demonstrated from the 1960s through to the 1990s, latecomers can - with the right preconditions and determinants - take advantage of the newest technological development and simply buy technology for their own industrial development at a relatively lower cost and less risk4 (Lin, 2007, UNIDO, 2007).