Linking national innovation systems and innovation capacity
DOI:
https://doi.org/10.26661/2522-1566/2024-4/30-01Keywords:
National innovation systems (NIS), innovation capacity, innovation ecosystems, research and development (R&D)Abstract
National Innovation Systems (NIS) are fundamental in shaping a country’s innovation capacity, influencing economic diversification and sustainable growth. The purpose of this study is to examine the role of well-structured and functional NIS in fostering innovation capacity across diverse contexts, including resource-rich countries, leading innovative nations, and developing regions. This research employs a comparative analysis methodology, drawing on data from global innovation indices, case studies, and academic literature to evaluate key metrics such as R&D investment, patent activity, university-industry collaboration, and public-private partnerships. The findings reveal significant disparities in innovation performance, with resource-rich countries often constrained by systemic challenges like the "resource curse," while nations such as Norway and Canada illustrate how strategic management of natural wealth drives sustainable innovation. Similarly, developing regions face barriers including weak institutional frameworks and limited funding, yet exhibit potential for progress through targeted reforms.
The findings underline the importance of robust NIS structures, emphasizing the need for greater investment in R&D, stronger university-industry collaboration, and enhanced public-private partnerships as crucial enablers of innovation capacity. Practical and policy implications are needed in offering actionable strategies for overcoming systemic challenges, improving innovation ecosystems, and achieving economic resilience.
Jel Classification: O31, O32, R11, O57
References
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Cvetanović, S., Panić, A., & Kostić, A. (2021). National innovation capacity and economic progress of countries. Economic Themes, 59(3), 297‑314. https://doi.org/10.2478/ethemes-2021-0017
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Halkos, G., & Skouloudis, A. (2018). Corporate social responsibility and innovative capacity : Intersection in a macro-level perspective. Journal of Cleaner Production, 182, 291‑300. https://doi.org/10.1016/j.jclepro.2018.02.022
Jankowska, B., Matysek-Jędrych, A., & Mroczek-Dąbrowska, K. (2017). Efficiency of national innovation systems – Poland and Bulgaria in the context of the global innovation index. Comparative Economic Research Central and Eastern Europe, 20(3), 77‑94. https://doi.org/10.1515/cer-2017-0021
Kahn, M. (2014). The rise of the BRICS and resource nationalism : Challenge and opportunity for Africa’s innovation systems. African Journal of Science Technology Innovation and Development, 6(5), 369‑381. https://doi.org/10.1080/20421338.2014.970424
Karahan, Ö. (2017). The relationship between national innovative capability and performance in Europe. Pressacademia, 6(1), 53‑60. https://doi.org/10.17261/pressacademia.2017.385
Links, A., Hart, T., & Jacobs, P. (2014). The dynamics of local innovations among formal and informal enterprises : Stories from rural South Africa. African Journal of Science Technology Innovation and Development, 6(3), 175‑184. https://doi.org/10.1080/20421338.2014.940168
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Makkonen, T., Weidenfeld, A., & Williams, A. M. (2017). Cross-Border Regional Innovation System Integration : An Analytical Framework. Tijdschrift voor Economische en Sociale Geografie, 108(6), 805‑820. https://doi.org/10.1111/tesg.12223
Manzini, S. (2015). Measurement of innovation in South Africa : An analysis of survey metrics and recommendations. South African Journal of Science, 111(11/12), 8. https://doi.org/10.17159/sajs.2015/20140163
Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the Resource Curse. The Economic Journal, 116(508), 1‑20.
Nelson, R. R. (1993). National Innovation Systems : A Comparative Analysis. Oxford University Press.
Oluwatobi, S., Efobi, U., Olurinola, I., & Alege, P. (2014). Innovation in Africa : Why institutions matter. South African Journal of Economics, 83(3), 390‑410. https://doi.org/10.1111/saje.12071
Park, M. S., Bleischwitz, R., Han, K., Jang, E.-K., & Joo, J. (2017). Eco-Innovation Indices as Tools for Measuring Eco-Innovation. Sustainability, 9. https://doi.org/10.3390/su9122206
Perez-Astray, B., & Calvo-Babio, N. (2011). Analysis of the interface systems as mediating agents in university/industry relations. Proposal of the “relationship promoter” as a strategic role in the R&D transference. European Research Studies Journal, XIV(1), 55‑76. https://doi.org/10.35808/ersj/310
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Sharif, N. (2006). Emergence and development of the national innovation systems concept. Research Policy, 35(5), 745‑766. https://doi.org/10.1016/j.respol.2006.04.001
Spielman, D., Ekboir, J., Davis, K., & Ochieng, C. (2008). An innovation systems perspective on strengthening agricultural education and training in sub-Saharan Africa. Agricultural Systems, 98(1), 1‑9. https://doi.org/10.1016/j.agsy.2008.03.004
Stoian, M., & Nica, A. (2016). Innovation progress at international level. https://doi.org/10.15405/epsbs.2016.09.119
Toivanen, H., & Ponomariov, B. (2011). African regional innovation systems : Bibliometric analysis of research collaboration patterns 2005–2009. Scientometrics, 88(2), 471‑493. https://doi.org/10.1007/s11192-011-0390-1
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Tsai, W. (2001). Knowledge transfer in intraorganizational networks : Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996‑1004. https://doi.org/10.2307/3069443
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Zhan, S., Bendapudi, N., & Hong, Y. (2015). Re‐examining diversity as a double‐edged sword for innovation process. Journal of Organizational Behavior, 36(7), 1026‑1049. https://doi.org/10.1002/job.2027
Aleknavičiūtė Rasa, Skvarciany Viktorija, & Survilaitė Simona. (2016). The Role of Human Capital for National Innovation Capability in Eu Countries. Economics and Culture, 13(1), 114‑125. https://doi.org/10.1515/jec-2016-0014
Alnafrah, I., Naimi, K., & Ahmad, M. (2018). A comparative analysis of national innovation systems’ structures and their developmental impacts (Evidences from BRICS countries). Economics and Environmental Management. https://doi.org/10.17586/2310-1172-2018-11-1-13-20
Andrijauskienė, M., & Dumčiuvienė, D. (2019). Inward foreign direct investment and national innovative capacity. Engineering Economics, 30(3), 339‑348. https://doi.org/10.5755/j01.ee.30.3.22832
Archibugi, D., & Michie, J. (1997). Technological globalisation or national systems of innovation? Futures, 29(2), 121‑137. https://doi.org/10.1016/S0016-3287(96)00072-9
Auty, R. (2002). Sustaining Development in Mineral Economies : The Resource Curse Thesis. https://doi.org/10.4324/9780203422595
Castellacci, F., & Natera, J. (2013). The dynamics of national innovation systems : A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity. Research Policy, 42(3), 579‑594. https://doi.org/10.1016/j.respol.2012.10.006
Chang, S., & Fan, C. (2017). Scientific or technological driving force ? Constructing a system of national innovative capacity. International Journal of Innovation Science, 9(2), 170‑183. https://doi.org/10.1108/ijis-01-2017-0001
Chen, Y., & Puttitanun, T. (2005). Intellectual property rights and innovation in developing countries. Journal of Development Economics, 78(2), 474‑493. https://doi.org/10.1016/j.jdeveco.2004.11.005
Clark, N. (2002). Innovation systems, institutional change and the new knowledge market : Implications for third world agricultural development. Economics of Innovation and New Technology, 11(4‑5), 353‑368. https://doi.org/10.1080/10438590200000004
Cohen, R. (1987). Transcription of the constitutively expressed yeast enolase gene ENO1 is mediated by positive and negative cis-acting regulatory sequences. Mol.
Cohen, W., & Levinthal, D. (1990). Absorptive Capacity : A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35, 128‑152. https://doi.org/10.2307/2393553
Cvetanović, S., Panić, A., & Kostić, A. (2021). National innovation capacity and economic progress of countries. Economic Themes, 59(3), 297‑314. https://doi.org/10.2478/ethemes-2021-0017
Domazet, I., Marjanović, D., Beraha, I., & Ahmetagić, D. (2022). Innovative capacity as a driving force of national competitiveness. Ekonomika Preduzeca, 70(7‑8), 406‑418. https://doi.org/10.5937/ekopre2208406d
Etzkowitz, H., & Leydesdorff, L. (2000). The Dynamics of Innovation : From National Systems and “Mode 2” to a Triple Helix of University-Industry-Government Relations. Research Policy, 29(2), 109‑123.
Freitas, H. (2023). National system of innovation and economic development : A case study from China. Revista Estudo & Debate, 30(4). https://doi.org/10.22410/issn.1983-036x.v30i4a2023.3423
Furman, J., Porter, M., & Stern, S. (2000). Understanding the drivers of national innovative capacity. Academy of Management Proceedings, 2000(1), A1‑A6. https://doi.org/10.5465/apbpp.2000.5536001
Gachie, W., & Govender, D. (2017). Innovation policy and governance in the African region. International Business & Economics Research Journal (IBER), 16(2), 119‑130. https://doi.org/10.19030/iber.v16i2.9926
Gill, T., Jones, K., & Hammett, T. (2016). Agricultural education and training system capacity development for sub-Saharan Africa : The role of INNOVATE. Journal of Development and Communication Studies, 4(2), 401. https://doi.org/10.4314/jdcs.v4i2.1
Haghi, S. (2013). Lessons from Korea, Switzerland and Norway : Improvement in innovation management in Iran. Management Science Letters, 2443‑2454. https://doi.org/10.5267/j.msl.2013.08.020
Halkos, G., & Skouloudis, A. (2018). Corporate social responsibility and innovative capacity : Intersection in a macro-level perspective. Journal of Cleaner Production, 182, 291‑300. https://doi.org/10.1016/j.jclepro.2018.02.022
Jankowska, B., Matysek-Jędrych, A., & Mroczek-Dąbrowska, K. (2017). Efficiency of national innovation systems – Poland and Bulgaria in the context of the global innovation index. Comparative Economic Research Central and Eastern Europe, 20(3), 77‑94. https://doi.org/10.1515/cer-2017-0021
Kahn, M. (2014). The rise of the BRICS and resource nationalism : Challenge and opportunity for Africa’s innovation systems. African Journal of Science Technology Innovation and Development, 6(5), 369‑381. https://doi.org/10.1080/20421338.2014.970424
Karahan, Ö. (2017). The relationship between national innovative capability and performance in Europe. Pressacademia, 6(1), 53‑60. https://doi.org/10.17261/pressacademia.2017.385
Links, A., Hart, T., & Jacobs, P. (2014). The dynamics of local innovations among formal and informal enterprises : Stories from rural South Africa. African Journal of Science Technology Innovation and Development, 6(3), 175‑184. https://doi.org/10.1080/20421338.2014.940168
Lundvall, B.-Å. (1992). National Systems of Innovation : Towards a Theory of Innovation and Interactive Learning. Pinter Publishers.
Lundvall, B.-Å. (2016). National Systems of Innovation : Towards a Theory of Innovation and Interactive Learning. In The Learning Economy and the Economics of Hope (p. 85‑106). Anthem Press. http://www.jstor.org/stable/j.ctt1hj9zjd.9
Makkonen, T., Weidenfeld, A., & Williams, A. M. (2017). Cross-Border Regional Innovation System Integration : An Analytical Framework. Tijdschrift voor Economische en Sociale Geografie, 108(6), 805‑820. https://doi.org/10.1111/tesg.12223
Manzini, S. (2015). Measurement of innovation in South Africa : An analysis of survey metrics and recommendations. South African Journal of Science, 111(11/12), 8. https://doi.org/10.17159/sajs.2015/20140163
Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the Resource Curse. The Economic Journal, 116(508), 1‑20.
Nelson, R. R. (1993). National Innovation Systems : A Comparative Analysis. Oxford University Press.
Oluwatobi, S., Efobi, U., Olurinola, I., & Alege, P. (2014). Innovation in Africa : Why institutions matter. South African Journal of Economics, 83(3), 390‑410. https://doi.org/10.1111/saje.12071
Park, M. S., Bleischwitz, R., Han, K., Jang, E.-K., & Joo, J. (2017). Eco-Innovation Indices as Tools for Measuring Eco-Innovation. Sustainability, 9. https://doi.org/10.3390/su9122206
Perez-Astray, B., & Calvo-Babio, N. (2011). Analysis of the interface systems as mediating agents in university/industry relations. Proposal of the “relationship promoter” as a strategic role in the R&D transference. European Research Studies Journal, XIV(1), 55‑76. https://doi.org/10.35808/ersj/310
Ricardo, D. (1817). On the Principles of Political Economy and Taxation (P. Sraffa, Éd.). John Murray.
Sharif, N. (2006). Emergence and development of the national innovation systems concept. Research Policy, 35(5), 745‑766. https://doi.org/10.1016/j.respol.2006.04.001
Spielman, D., Ekboir, J., Davis, K., & Ochieng, C. (2008). An innovation systems perspective on strengthening agricultural education and training in sub-Saharan Africa. Agricultural Systems, 98(1), 1‑9. https://doi.org/10.1016/j.agsy.2008.03.004
Stoian, M., & Nica, A. (2016). Innovation progress at international level. https://doi.org/10.15405/epsbs.2016.09.119
Toivanen, H., & Ponomariov, B. (2011). African regional innovation systems : Bibliometric analysis of research collaboration patterns 2005–2009. Scientometrics, 88(2), 471‑493. https://doi.org/10.1007/s11192-011-0390-1
Toivanen, O., & Cressy, R. C. (2002). Lazy Entrepreneurs or Dominant Banks ? An Empirical Analysis of the Market for SME Loans in the UK. Presented Paper at EFA 2002 Berlin Meetings; Warwick Business School SME Centre Working Paper; Cass Business School Research Paper.
Tsai, W. (2001). Knowledge transfer in intraorganizational networks : Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996‑1004. https://doi.org/10.2307/3069443
UNESCO Institute for Statistics. (2024). UIS.Stat database. https://uis.unesco.org/bdds
World Bank. (2024). Global Economic Monitor (GEM) Databank. https://databank.worldbank.org/source/global-economic-monitor-(gem)
Zhan, S., Bendapudi, N., & Hong, Y. (2015). Re‐examining diversity as a double‐edged sword for innovation process. Journal of Organizational Behavior, 36(7), 1026‑1049. https://doi.org/10.1002/job.2027
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Published
2024-12-20
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Economics
How to Cite
Metaiche, M.E.A. (2024) “Linking national innovation systems and innovation capacity”, Management and Entrepreneurship: Trends of Development, 4(30), pp. 8–26. doi:10.26661/2522-1566/2024-4/30-01.
