The Role of Science and Multinationals
Edited by Grazia D. Santangelo
Chapter 7: Dynamic Capability, Innovation Networks and Foreign Firms: The Turkish Case
7. Dynamic capability, innovation networks and foreign ﬁrms: the Turkish case* Aykut Lenger and Erol Taymaz 1. INTRODUCTION The conventional understanding of technical change as a linear process relating to invention in science, introduction into the market and consequent diﬀusion has been replaced by a more complex one in the last couple of decades. When Mansﬁeld proposed, in the early 1970s, that the innovation process is not simply the outcome of basic R&D expenditures, he was referring to the nonlinear character of the process itself, which is also responsive to feedbacks from production and marketing problems and needs as well as technological opportunities (Mansﬁeld, 1994). More recently, a comprehensive eﬀort to describe and understand technological change has led to the theoretical conceptualization of the process as a system. The idea in this perspective is that the innovation process is of a nonlinear character such that each stage of the process is deeply aﬀected by the interaction of the institutions at work, which together constitute a system (Freeman, 1987, 1988, 2002; Lundvall, 1988, 1992; Nelson, 1988, 1993; Kim, 2000). This approach, the so-called national innovation system,1 is deﬁned by Freeman (1987), who ﬁrst introduced the concept into the theoretical discussion as the network of institutions, both public and private, which produce, import, adapt and diﬀuse new technologies by their activities and interactions. The main focus in this literature is the institutions, whether R&D laboratories, universities, administrative government bodies, ﬁnancial intermediaries, or...
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