Transcript Reflection Paper on National Innovation System

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
• Reflection 2: suggesting how China and India can
improve their National Innovation Systems
Article 1
Continental, national and sub-national
innovation systems - complementarity
and economic growth
Chris Freeman
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.
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
BRITAIN
• Leading economy in the 18th century
• Science was worshipped
• Congruence of science, technology and
entrepreneurship
UNITED STATES
• Influenced by the British economy
• Technology bootlegged from Europe
• Absence of a feudal system
• Abolition of slavery
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
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ex. Eastern Asia
Reflection 1
Common 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
knowledge
o 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.
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
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.
Reflection 1
Compare China and India - India
•
Better higher education
o
overall quality of higher education
o
cultivating R&D professionals and intensifying its scientific
research
• High-tech industries account for higher proportions in India’s
total GDP
o 4.75% in India’s total GDP compared to only 4% for China.
o more knowledge based and innovative economy
o better potential in becoming a knowledge intensive
economy.
Article 2
Determinants of National Innovation
Systems: Policy implications for
developing countries
Frank L Bartels, Hinrich Voss, Suman Lederer & Christopher Batchtrog
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.
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’
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’
Findings of the study
Key determinants of NIS:
•
knowledge management
•
education system
•
juridical autonomy of institutions
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clear regulations
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low red tape
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sophisticated markets and investments
Reflection 2
Consistent findings with the 1st article
•
Importance of government regulation and support to improve a
country’s NIS
o creating and promoting an innovative culture
o giving clear instructions to the markets
o 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
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Importance of scientific outputs
o intellectual property and patents
o contribute to economic growth
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 demographic
o knowledge, especially in its tacit form, are more likely to be
embedded in a younger population rather than an older
one.
Reflection 2
Strategies for both China and India to improve their National Innovation Systems
•
Invest more into their education systems
o especially in high level education
o improving the quality of education instead of the quantity
•
Government regulation and support
o China: developing high-tech industries
o India: building additional and better communication infrastructure;
increase the quantity of scientific outputs in India with incentives
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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 family
o China: be cautious about the aging of the population.
Questions and Comments