national innovation systems
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National Innovation Systems. Samantha Pinto 301087184 Jiaxiao Zhang 301173206. Agenda. Summary of article 1 Reflection 1: examining China and India’s advantages and disadvantages of their National Innovation Systems and economic growth Summary of article 2 - PowerPoint PPT PresentationTRANSCRIPT
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National Innovation Systems
Samantha Pinto 301087184 Jiaxiao Zhang 301173206
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Agenda• Summary of article 1• Reflection 1: examining China and India’s
advantages and disadvantages of their National Innovation Systems and economic growth
• Summary of article 2• Reflection 2: suggesting how China and India can
improve their National Innovation Systems
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Article 1
Continental, national and sub-national innovation systems -
complementarity and economic growth
Chris Freeman
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What is a national innovation system?
• Narrow - Institutions that insist on promoting the acquisition and dissemination of knowledge while being the main sources of innovation depict a narrow national system of innovation.
• Broad - the scale, direction and relative success of their innovative activities are determined with the help of the system’s political, cultural influences and economic policies.
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Freeman's article - Role of NIS
• Explains the role of a country's innovation system on its economic growth
• Significant divergence in economic growth rate between developed and developing countries over time
• Innovation plays a key role• Governance system aligned with industry
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BRITAIN
• Leading economy in the 18th century• Science was worshipped• Congruence of science, technology and
entrepreneurship
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UNITED STATES
• Influenced by the British economy• Technology bootlegged from Europe• Absence of a feudal system• Abolition of slavery
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LATE COMER COUNTRIES• Catch up economies- Japan, Korea, Taiwan• Invested heavily in in house R&D and education• Imitation ( less costly)• Downfall: Large scale production without proper
knowledge of technology buildup• Solution: Active learning
• ex. Eastern Asia
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Reflection 1Common advantages of China and India• Huge market demands and cheap labour force
o attract investments from developed countries o access to newly advanced technology, technical skills
and knowledge. • Acquisition instead of innovation on technology and
knowledgeo lower the risks and save the time, effort and cost for
research and development. o move more rapidly to large-scale production and achieve
economies of scale.
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Reflection 1
Common disadvantages of China and India• Education systems
o relatively unsuccessful compared to developed countries.
o limit the abilities to innovate and less support to NIS
• Roles in the world’s economic competition
o limited as simple manufacturers and service providers.
o small economic value and gross margins
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Reflection 1
Compare China and India - China• More developed innovation infrastructure
o average communication resources owned per person
o information and knowledge can be transmitted more efficiently and on a larger scale
• Higher total input and output for innovative activities.
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Reflection 1Compare China and India - India • Better higher education
o overall quality of higher educationo cultivating R&D professionals and intensifying its
scientific research• High-tech industries account for higher proportions in
India’s total GDPo 4.75% in India’s total GDP compared to only 4% for
China. o more knowledge based and innovative economyo better potential in becoming a knowledge intensive
economy.
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Article 2
Determinants of National Innovation Systems: Policy implications for
developing countriesFrank L Bartels, Hinrich Voss, Suman Lederer & Christopher Batchtrog
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Purpose of the study
• Suggest certain determinants that exist in high performing National Innovation Systems of developed economies
• Use these to provide valuable insight to the policy and management of National Innovation Systems in developing countries with less than efficient economies.
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Study: Variables of NIS development
1. ‘structural dynamics of knowledge management’2. ‘structural dynamics of decision making’3. ‘structural dynamics of government– business
relations’4. ‘structural dynamics of the market’
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Study: Variables of NIS development
Statistically significant:1. ‘structural dynamics of knowledge management’2. ‘structural dynamics of decision making’
3. ‘structural dynamics of government– business relations’
4. ‘structural dynamics of the market’
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Findings of the study
Key determinants of NIS:• knowledge management • education system• juridical autonomy of institutions• clear regulations• low red tape• sophisticated markets and investments
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Reflection 2Consistent findings with the 1st article• Importance of government regulation and support to improve a
country’s NISo creating and promoting an innovative cultureo giving clear instructions to the marketso making more tangible and intangible investments.
• An effective education system leads to competitive advantages when improving its National Innovation System. o Provides high quality education
• Importance of scientific outputs o intellectual property and patentso contribute to economic growth
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Reflection 2
New findings in 2nd article• A competitive market condition can force innovation
o firms have to innovate in order to survive in a highly competitive environment.
• Negative relationship between technological competitiveness and age demographico knowledge, especially in its tacit form, are more likely to
be embedded in a younger population rather than an older one.
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Reflection 2Strategies for both China and India to improve their National
Innovation Systems • Invest more into their education systems
o especially in high level educationo improving the quality of education instead of the quantity
• Government regulation and supporto China: developing high-tech industrieso India: building additional and better communication infrastructure;
increase the quantity of scientific outputs in India with incentives• Demographics
o India: young demographic indicates a relative advantage in technological competitiveness. • try to maintain this young demographic with incentives for
appropriate birth rate per familyo China: be cautious about the aging of the population.
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Questions and Comments
Thanks