National Innovation Systems

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6 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

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National
Innovation
Systems

Samantha Pinto 301087184

Jiaxiao Zhang 301173206

Agenda


Summary of article 1


Reflection 1: examining China and India’s
advantages and disadvantages of their National
Innovation
Systems
and economic growth


Summary of article 2


Reflection 2: suggesting how China and India can
improve their National Innovation Systems

Article 1


Continental
, national and sub
-
national
innovation systems
-

complementarity
and economic
growth


Chris Freeman

What is a national innovation system?


Narrow

-

Institutions
that insist on promoting the
acquisition and dissemination of knowledge while
being the main sources of innovation depict a
narrow national system of innovation.



Broad
-

the scale, direction and relative success of
their innovative activities are determined with the
help of the system’s political, cultural influences and
economic policies.



Freeman's
article
-

Role
of NIS


Explains
the role of a country's innovation system
on its economic growth


Significant
divergence in economic growth rate
between developed and developing countries
over time


Innovation
plays a key role


Governance
system aligned with industry

BRITAIN


Leading
economy in the 18th century


Science
was worshipped


Congruence
of science, technology and
entrepreneurship

UNITED STATES


Influenced by the British economy


Technology bootlegged from Europe


Absence of a feudal system


Abolition of slavery


LATE COMER COUNTRIES


Catch up
economies
-

Japan, Korea, Taiwan


Invested heavily in in house R&D and education


Imitation ( less costly)


Downfall: Large scale production without proper
knowledge of technology buildup


Solution: Active learning


ex. Eastern Asia

Reflection 1

Common advantages of China and
India


Huge
market demands and cheap labour
force

o
attract investments from developed countries

o
access to newly advanced technology, technical skills and
knowledge.


Acquisition
instead of innovation on technology and
knowledge

o
lower
the risks and save the time, effort and cost for
research and development.

o
move
more rapidly to large
-
scale production and achieve
economies of scale.

Reflection 1

Common disadvantages of China and
India


Education
systems

o
relatively
unsuccessful compared to developed countries.

o
limit
the abilities to innovate and less support to NIS


Roles in the world’s economic competition

o
limited
as simple manufacturers and service providers.

o
small
economic value and gross margins


Reflection 1

Compare China and
India

-

China


More developed innovation infrastructure

o
average
communication resources owned per
person

o
information
and knowledge can be transmitted more
efficiently and on a larger scale


Higher
total input and output for innovative activities.



Reflection 1

Compare China and India
-

India



Better
higher
education

o
overall
quality of higher
education

o
cultivating
R&D professionals and intensifying its scientific
research


High
-
tech
industries account for higher proportions in India’s
total
GDP

o
4.75
% in India’s total GDP compared to only 4% for China.

o
more
knowledge based and innovative
economy

o
better
potential in becoming a knowledge intensive
economy.


Article 2


Determinants
of National Innovation
Systems: Policy
implications for
developing countries


Frank
L
Bartels, Hinrich Voss, Suman Lederer & Christopher Batchtrog

Purpose of the study


Suggest
certain determinants that exist in high performing
National Innovation Systems of developed economies


Use
these to provide valuable insight to the policy and
management of National Innovation Systems in developing
countries with less than efficient economies.

Study: Variables of NIS development

1.
‘structural
dynamics of knowledge management’

2.
‘structural dynamics of decision making


3.

structural dynamics of government


business
relations


4.
‘structural dynamics of the market


Study: Variables of NIS development

Statistically significant:

1.
‘structural
dynamics of knowledge management’

2.
‘structural dynamics of decision making


3.

structural dynamics of government


business
relations’

4.
‘structural dynamics of the market



Findings of the study

Key determinants of NIS:


knowledge management


education system


juridical autonomy of institutions


clear regulations


low red tape


sophisticated markets and investments

Reflection 2

Consistent findings with the 1st article


Importance of government regulation and support to improve a
country’s
NIS

o
creating
and promoting an innovative
culture

o
giving
clear instructions to the
markets

o
making
more tangible and intangible investments.


An effective education system leads to competitive advantages
when improving its National Innovation System.

o
Provides
high quality
education


Importance of scientific outputs

o
intellectual
property and
patents

o
contribute
to economic growth

Reflection 2

New findings in 2nd article


A competitive market condition can force innovation

o
firms
have to innovate in order to survive in a highly
competitive environment.


Negative relationship between technological competitiveness
and age
demographic

o
knowledge
, especially in its tacit form, are more likely to be
embedded in a younger population rather than an older
one.

Reflection 2

Strategies for both China and India to improve their National
Innovation S
ystems


Invest more into their education
systems

o
especially
in high level
education

o
improving
the quality of education instead of the quantity


Government regulation and
support

o
China
: developing high
-
tech
industries

o
India
: building additional and better communication infrastructure;
increase the quantity of scientific outputs in India with incentives


Demographics

o
India
: young demographic indicates a relative advantage in
technological competitiveness.


try
to maintain this young demographic with incentives for
appropriate birth rate per
family

o
China: be cautious about the aging of the population.


Questions and Comments