Innovation system
Encyclopedia
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.
´s conception of “The National System of Political Economy” (1841), which might just as well have been called “The National System of Innovation” (Freeman, 1995). Christopher Freeman coined the expression "National Innovation System" or in his 1988 study of the success of the Japanese economy.
The concept, similarly used as "National System of Innovation" or "National Innovation System" 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 system
s, regional innovation system
s, local innovation system
s, technological innovation system
s 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 a planned innovation environment, and "innovation ecosystem" for an ecological innovation environment.
Development and diffusion of the concept
Systems of Innovation are frameworks for understanding innovation which have become popular particularly among policy makers and innovation researchers first in Europe, but now anywhere in the world as in the 90's the World Bank and other UN affiliated institutions accepted. The concept of a 'system of innovation' was introduced by B.-Å. Lundvall in 1985 “however, as he and his colleagues would be the first to agree (and as Lundvall himself points out), the idea actually goes back at least to the Friedrich ListFriedrich List
Georg Friedrich List was a leading 19th century German economist who developed the "National System" or what some would call today the National System of Innovation...
´s conception of “The National System of Political Economy” (1841), which might just as well have been called “The National System of Innovation” (Freeman, 1995). Christopher Freeman coined the expression "National Innovation System" or in his 1988 study of the success of the Japanese economy.
The concept, similarly used as "National System of Innovation" or "National Innovation System" was later applied to regions and sectors. According to innovation system theory, innovation
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...
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 system
National innovation system
The National Innovation System is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level...
s, regional innovation system
Regional innovation system
In the study of innovation systems, a regional innovation system encourages the rapid diffusion of knowledge, skills and best practice within a geographic area larger than a city, but smaller than a nation...
s, local innovation system
Local innovation system
A Local innovation system is a spatial concentration of firms and associated non-market institutions A Local innovation system is a spatial concentration of firms (including specialized suppliers of equipment and services and customers) and associated non-market institutions A Local innovation...
s, technological innovation system
Technological innovation system
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...
s 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 a planned innovation environment, and "innovation ecosystem" for an ecological innovation environment.
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)
See also
- Technological innovation systemTechnological innovation systemThe 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...
- Social innovationSocial innovationSocial innovation refers to new strategies, concepts, ideas and organizations that meet social needs of all kinds - from working conditions and education to community development and health - and that extend and strengthen civil society....
- Collaborative innovation network
- Entrepreneurial ecosystemEntrepreneurial ecosystemAn entrepreneurial ecosystem, in a broader sense refers to the environment affecting the local/regional entrepreneurship.But it can also be a group of companies, including start-ups, and one or more coordination entities, which share similar goals and decide to form a network or organization in...