Asia’s Innovation Systems in Transition

Asia’s Innovation Systems in Transition

New Horizons in the Economics of Innovation series

Edited by Bengt-Åke Lundvall, Patarapong Intarakumnerd and Jan Vang

The success of Asian economies (first Japan, then Taiwan, South Korea, Singapore, Hong Kong and, more recently, China and India) has made it tempting to look for ‘an Asian model of development’. However, the strength of Asian development lies less in strategies that reproduce successful national systems of innovation and more in the capacity for institutional change to open up new development trajectories with greater emphasis on knowledge and learning. The select group of contributors demonstrate that although there are important differences among Asian countries in terms of institutional set-ups supporting innovation, government policies and industrial structures, they share common transitional processes to cope with the globalizing learning economy.

Chapter 4: Effectively Linking International, National and Regional Innovation Systems: Insights from India and Indonesia

Martina Fromhold-Eisebith

Subjects: economics and finance, economics of innovation, innovation and technology, economics of innovation

Extract

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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