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Innovation system



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 interaction between the actors who are needed in order to turn an idea into a process, product or service on the market.


Development and diffusion of the concept

The concept of a 'system of innovation' was introduced by Lundvall in 1985. Freeman coined the expression "National Innovation System" in his 1988 study of the success of the Japanese economy. The concept was later applied to regions and sectors. 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 research institutes.


 


Innovation systems have been categorized into national innovation systems, local innovation systems, regional innovation systems and sectoral innovation systems.


 


There is no consensus on the exact definition of an innovation system, and the concept is still emerging. Innovation is often the result of the interaction among an ecology of actors, and the term 'innovation ecosystem' is occasionally used to emphasize this. For some, the expression 'innovation ecosystem' is a subset or synonym of 'innovation system'. Others separate between the expressions, using the expression "innovation system" for labeling an planned innovation environment, and "innovation ecosystem" for an ecological innovation envirionment.


Examples of Definitions of National Innovation Systems

A national system of innovation has been defined as follows:


 


* “ .. The network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies.†(Freeman, 1987)


 


* “ .. The elements and relationships which interact in the production, diffusion and use of new, and economically useful, knowledge ... and are either located within or rooted inside the borders of a nation state.†(Lundvall, 1992)


 


* “... a set of institutions whose interactions determine the innovative performance ... of national firms.†(Nelson, 1993)


 


* “ .. The national institutions, their incentive structures and their competencies, that determine the rate and direction of technological learning (or the volume and composition of change generating activities) in a country.†(Patel and Pavitt, 1994)


 


* “.. That set of distinct institutions which jointly and individually contribute to the development and diffusion of new technologies and which provides the framework within which governments form and implement policies to influence the innovation process. As such it is a system of interconnected institutions to create, store and transfer the knowledge, skills and artefacts which define new technologies.†(Metcalfe, 1995)


Similar concepts

There are today strong links with economical competitiveness. National innovation systems link to the competitiveness of nations, and the concept of innovative Business Cluster is close to the concept of regional innovation systems.

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