National System Of Innovation

877 Words4 Pages
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 ,include the elements that interact in shaping innovation process as well as elements that link innovation to economic performance. According to Lundvall (1992) economic structures and institutions are introduced as two dimensions of national system of innovation , institutions
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Defining innovation
Innovation is a process of making more effective product and services, basically it is a process of implementing new ideas. Innovation is a characteristic that is advantageous to the society as a whole, for example, nation or region. Not merely can innovation display new ideas that improves the lives of individuals but both nationally and internationally, it also has a huge contribution towards the economic growth. Innovation also rises the amount of economic growth by ‘’providing cost competitiveness within a nation and attracting investment’’. (Sullivan, 2008).
The term innovation refer to all the capacity on acquiring new knowledge, and the way of interpreting it effectively and helping positively in the development of industries which will prompt the monetary development and investment improvement of the nation.

4. Systems of
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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,
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