National Innovation Definition

1. Introduction

Nation systems of innovation it is not just a simple term that help only in economic growth but it is a term that connects or interact all the institution that plays a part in innovation that is why it is define as a network of institutions, so this assignment will briefly discuss national systems of innovation by looking at both narrow and broader definition of the concept.

2. Background

National system of innovation in a definition of the innovation system that include the elements that interact in shaping innovation process as well as elements that link innovation to economic performance. In Lundvall (1992) economic structures and institutions are introduced as two dimensions of national system of innovation , institutions

Freeman (1987) characterizes it as ‘’the network of institutions. In the government funded (public sector) private division whose activities and interaction initiate, import diffuse new technologies’’ (freeman, 1987). Metcalfe broaden the definition of system of innovation as a the system that comprises of all important ‘’ economic, social, political, organizational, Institutional and other factors that have an impact on the development, distribution and use of innovation (Edquist 1997), some few example of the institution involved in the national system of innovation are research and development institutes, universities, institutions involved in science & and technology and more. All these institutions have an impact on economic growth, and economic development of the country, one of the key importance of national systems of innovation is that it strengthen human capital meaning the skills and knowledge within a country of population broadens. Metcalfe 1995 view systems of innovation as ‘’interconnected institutions to create, store and transfer of knowledge, skills and artefacts which define new technologies’’. (Metcalfe,

Lundvall (1992) the institutions can be divided into a range of divisions (formal and informal) for example we have: economic institution rules and regulations that determine the “economic rules of the game”, the functions of economic institution is to improve development and financial security through the establishment of financial services.Political institutions help to regulate the laws and regulations on the innovation systems, Social, social institutions shows how people live how they do things. The interactions of this institution is very broad for example: The social institution produce human race which are the people who formulate and come up with innovative ideas and that’s where economic institutions comes with financial resource to help implement the new ideas as doing so the political institutions intervenes by providing regulations , and at the end of the process these institution ensure that the national systems of innovation contributes towards attaining economic growth of the