Regional Integration and Knowledge Flows: Effect on Manufacturing Productivity in Southern Africa

The tacit nature of technological knowledge often renders face-to-face interactions a necessity for technology to diffuse because knowledge circulates best locally (Kesidou and Szirmai 2008). It is through those interactions that tacit knowledge can be translated into explicit, usable new knowledge. This explains why geographic proximity is important for technological learning by facilitating direct interactions and knowledge diffusion. Thanks to its impressive diamond deposits and its geographical proximity with the South African economy, Botswana is thus well poised to benefit from mastering and applying technologies that already exist in its southern neighbour. Botswana’s geographic and economic proximity with South Africa is thus one of its most important winning cards for a successful technological catch-up and long term-growth.