The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.
The term National System of Innovation originated when Christopher Freeman and Bengt-Åke Lundvall worked together in the late 1980s. Freeman's research drew heavily on political economy of Friedrich List and his historical account of the rise of Japan as an economic superpower. Lundvall's work explored the important social interactions between suppliers and customers and their role in encouraging innovation in Denmark. Apart from a general definition, as above, there is no canonical definition of national innovation systems. A few dominant definitions are listed below (quoted in an OECD publication) [1] which overlap quite a bit:
A national system of innovation has been defined as follows:
A country’s innovative performance largely depends on how these actors relate to each other as elements of a collective system of knowledge creation and use as well as the technologies they use. For example, public research institutes, academia and industry serve as research producers carrying out research and development (R&D) activities. On the other hand, governments either central or regional play the role of coordinator among research producers in terms of their policy instruments, visions and perspectives for the future. Furthermore, in order to promote innovation the different innovative actors must have strong links with each other based on a strong level of trust and governments should promote and activate trust among the different innovation actors. [7] The links can take the form of joint research, personnel exchanges, crosspatenting, and purchase of equipment. [1] Finally, NSI are shaped by distinct socio-cultural qualities of national communities. Therefore, there are national trajectories of innovativeness, technology orientation and learning, which results in each nation, either highly developed or not, having some kind of NSI, no matter if working well or not. [8] Furthermore, the success factors of NSI have been seen by many scholars in the creation of supportive institutions and organizations (with a key role of education) and collaboration links Bridging Scales in Innovation Policies throughout the various elements that constitute a NSI. Examples include public R&D and companies, as well as common objectives and innovative cultures of agents, altogether entailing self/reinforcing progress and synergies. Differences in the structures and strategies of NSI among various economically successful countries indicate, however, that there is no universal best practise recipe. [8]
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: CS1 maint: date and year (link)Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity realizing or redistributing value". Others have different definitions; a common element in the definitions is a focus on newness, improvement, and spread of ideas or technologies.
The knowledge economy or the knowledge-based economy, is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific innovation. The key element of value is the greater dependence on human capital and intellectual property for the source of the innovative ideas, information and practices. Organisations are required to capitalise this "knowledge" into their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organisations' settings in facilitating modern economic growth.
The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan devised in 2000, for the economy of the European Union between 2000 and 2010. A pivotal role in its formulation was played by the Portuguese economist Maria João Rodrigues.
The concept of the innovation system stresses that the flow of technology and information among people, enterprises, and institutions is key to an innovative process. It contains the interactions between the actors needed in order to turn an idea into a process, product, or service on the market.
Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. The theory was popularized by Everett Rogers in his book Diffusion of Innovations, first published in 1962. Rogers argues that diffusion is the process by which an innovation is communicated over time among the participants in a social system. The origins of the diffusion of innovations theory are varied and span multiple disciplines.
Research funding is a term generally covering any funding for scientific research, in the areas of natural science, technology, and social science. Different methods can be used to disburse funding, but the term often connotes funding obtained through a competitive process, in which potential research projects are evaluated and only the most promising receive funding. It is often measured via Gross domestic expenditure on R&D (GERD).
Eco-innovation is the development of products and processes that contribute to sustainable development, applying the commercial application of knowledge to elicit direct or indirect ecological improvements. This includes a range of related ideas, from environmentally friendly technological advances to socially acceptable innovative paths towards sustainability. The field of research that seeks to explain how, why, and at what rate new "ecological" ideas and technology spread is called eco-innovation diffusion.
Research and development intensity is generally defined as expenditures by a firm on its research and development (R&D) divided by the firm's sales. There are two types of R&D intensity: direct and indirect. R&D intensity varies, in general, according to a firm's industry sector, product knowledge, manufacturing, and technology, and is a metric that can be used to gauge the level of a company's investment to spur innovation in and through basic and applied research. A further aim of R&D spending, ultimately, is to increase productivity as well as an organization's salable output.
Christopher Freeman a British economist, recognised as one of the founders of the post-war school of Innovation Studies. He played a lead role in the development of the neo-Schumpeterian tradition focusing on the crucial role of innovation for economic development and of scientific and technological activities for well-being.
Bengt-Åke Lundvall is an emeritus professor in economics at the Department of Business and Management at Aalborg University.
The IKE Group is a research group at the Department of Business Studies, Aalborg University, Denmark and is central part of the Danish Research Unit for Industrial Dynamics (DRUID) founded in 1995 by the IKE Group and scholars from the Department of Industrial Economics and Strategy, Copenhagen Business School. The coordination of this research group has been in the hands of Bengt-Åke Lundvall.
The technological innovation system is a concept developed within the scientific field of innovation studies which serves to explain the nature and rate of technological change. A Technological Innovation System can be defined as ‘a dynamic network of agents interacting in a specific economic/industrial area under a particular institutional infrastructure and involved in the generation, diffusion, and utilization of technology’.
In the study of innovation systems, a regional innovation system (RIS) encourages the rapid diffusion of knowledge, skills and best practice within a geographic area larger than a city, but smaller than a nation. The edge of a regional innovation system may be drawn conceptually and organizationally around the economic, social, political and institutional relationships that generate a collective learning process within a related group of technological or functional areas.
The chain-linked model or Kline model of innovation was introduced by mechanical engineer Stephen J. Kline in 1985, and further described by Kline and economist Nathan Rosenberg in 1986. The chain-linked model is an attempt to describe complexities in the innovation process. The model is regarded as Kline's most significant contribution.
Demand articulation is a concept developed within the scientific field of innovation studies which serves to explain learning processes about needs for new and emerging technologies. Emerging technologies are technologies in their early phase of development, which have not resulted in concrete products yet. Many characteristics of these technologies, such as the technological aspects but also the needs of users concerning the technology, have not been specified yet. Demand articulation can be defined as ‘iterative, inherently creative processes in which stakeholders try to address what they perceive as important characteristics of and attempt to unravel preferences for an emerging innovation’.
The Norwegian paradox is a dilemma of Norway's economic performance where economic performance is strong despite low R&D investment.
The Science and Technology Information Center (STIC) is an Ethiopian organisation which provides information to support scientific and technological (S&T) activities in the country. STIC has published information on the financing of research and development and on the nature and progress of innovative projects, and in 2014 was planning to introduce bibliometric monitoring of publications in S&T. The center has also provided information and communications technology facilities including a digital library, a patent information system, an automated personnel management system, and a S&T-related database.
Neo-Schumpeterian economics is a school of thought that places technological innovation at the core of economic growth and transformation processes. It is inspired by the work of Joseph Schumpeter who coined the term creative destruction for the continuous introduction of technological change that drives growth by replacing old, less productive structures with new, more productive ones. Where Schumpeter explained the innovation drive by an exogenous factor called entrepreneurial spirits, neo-Schumpeterian economists refer to endogenous factors such as science and technology policies and corporate strategies of research and development to explain innovation. Neo-Schumpeterian economics is a form of evolutionary economics and closely related to innovation studies.
Research Policy is a peer-reviewed academic journal published by Elsevier on behalf of the Science Policy Research Unit (SPRU). It was established by British economist Christopher Freeman in 1971 and is regarded as the leading journal in the field of innovation studies. It is listed as one of the 50 journals used by the Financial Times to compile its business-school research ranks.
Knowledge-intensive services, abbreviated as KIS, are services that involve activities that are intended to result in the creation, accumulation, or dissemination of knowledge, where knowledge-intensiveness refers to how knowledge is produced and delivered with highly intellectual value-add. Knowledge intensive business services are the knowledge-intensive service activities for developing a customized service or product solution to satisfy the client's needs and they are provided mainly for other companies or organizations. These concepts are continuously discussed, formulated, and developed as a part of the constantly evolving academic discipline of knowledge management.