Huynh Thanh Dien
Nguyen Tat Thanh University
thanhdien82@gmail.com

Abstract

Although many developing economies have invested heavily in science, technology, and innovation, long-term structural transformation and productivity growth have remained slow. The constraint lies not in a lack of innovation itself, but in the absence of a systemic transformative capability at the national level. Building on the theory of National Transformative Capability previously proposed by the author, this study develops the concept of Transformative Science and Technology Capability as a core mechanism through which scientific knowledge and technological potential are translated into substantive economic change. From this perspective, science and technology are not merely inputs to innovation, but a capability to orient development goals, embed technological learning within productive activities, and adapt institutions over time. Transformative science and technology capability is conceptualized as comprising three closely interrelated elements: strategic orientation, productive learning and upgrading, and institutional adaptability. This approach helps explain why many countries exhibit innovation without achieving sustained structural transformation, and it opens new avenues for rethinking development strategies based on science and technology.

Keywords: National transformative capability; Transformative science and technology capability; Economic development; Innovation; Structural transformation.

Huỳnh Thanh Điền. (2025). Why Innovation Is Not Enough: Transformative Science and Technology Capability in Developing Economies. https://doi.org/10.5281/zenodo.18080219