Q1: What is a National Innovation System and why is it important?			:1 FAQID:710
: global,
InputDate: 8/1/2006
Reference: Deraniyanagala, Sonali. 2006. Analysis of Technology and Development. edt. by Jomo KS and Fine. The New Development Economics, Zed Books, London
A: That technology generation is determined by a complex interaction of a range of factors is the basis of the National Innovation System (NIS) approach to technology policy.
NIS comprises a complex amalgam of institutions
A national innovation system comprises a complex amalgam of state and non-state organizations, institutions, individuals, networks, and rules and refulations (Lundvall 2000).
NIS is related to trade, industrial policies
In this view, technology development cannot be promoted in isolation by trade policy or by industrial policy. The capacity to respond to any policy incentive ultimately depends on the effectiveness of the innovation system as a whole.
non-market social institutional elements are crucial
The NIS approach to technology policy, therefore, rejects the Washington Consensus view that effective technology development only involves geeting price right. It emphasizes the limitation of a purely market-based approach to technology policy, showing, instead, that non-market social and institutional factors are crucially important to technological dynamism.
Macro, sectoral policy also determine the incentive structure
It also shows that technology policy cannot be considered in isolation from other macroeconomic and sectoral policies, all of which affect the incentive structure for building technological capacity. Accordingly the aim of technology policy must be to develop and strengthen the entire innovation system.
NIS approach clarified the historical technological change
By broadening the scope of technology policy to include social, institutional, legal and cultural factors, the NIS approach highlights issues compeletely overlooked by orthodox approach to technology policy, and correspond more closely to the empirical and historical reality of technological change itself (in which, for example, military capability has often been a decisive factor).
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Contributed by: mk Rating: 3
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