New Horizons in the Economics of Innovation series
Edited by Bengt-Åke Lundvall, Patarapong Intarakumnerd and Jan Vang
Chapter 4: Effectively Linking International, National and Regional Innovation Systems: Insights from India and Indonesia
Martina Fromhold-Eisebith INTRODUCTION The notion of innovation systems aims at capturing the realization that innovation, regarded as a major driver of successful economies, is the outcome of the systemic interaction of various organizations and procedures, and of interconnected political, economic and social processes (Archibugi and Michie, 1997; Malecki, 1997; Hotz-Hart, 2000). These activities may relate to diﬀerent spatial scales (Oinas and Malecki, 1999); this ﬁnds its expression in terminological distinctions that particuarly address the national, regional and international levels. This chapter discusses how the three system scales could expediently be combined with respect to science, technology and innovation (STI) policies in Asian less developed countries, based on conceptual and empirical considerations. First the idea of national systems of innovation (NSI) has appeared on the scene, promoted by economists like Freeman (1987; 1995) and Lundvall (1992a; 2003), and elaborated on by many others (see the contributions in Lundvall, 1992b; Nelson, 1993; Edquist, 1997). According to basic deﬁnitions, an NSI ‘is constituted by elements and relationships which interact in the production, diﬀusion and use of new, and economically useful, knowledge . . . either located within or rooted inside the borders of a nation state’ (Lundvall, 1992a; p. 2), which ‘determine the innovative performance . . . of national ﬁrms’ (Nelson and Rosenberg, 1993, p. 4). The NSI combines various agents (such as ﬁrms, public/policy agencies, education and research organizations), their modes of behaviour and relationships. In less developed countries foreign companies are particularly important elements (Chesnais, 1992), in addition to public players. It is...
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