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					                                                    APCTT
      National Workshop on Sub-national Innovation
             Systems and Technology Capacity
   Building Policies to Enhance Competitiveness of SMEs
           21-22 December 2006, Kathmandu, Nepal


    National Innovation Systems
           A conceptual overview and promotion of
                     NIS in Asia-Pacific

                                                          by
                                               N. Srinivasan
Asian and Pacific Centre for Transfer of Technology (APCTT)
                                    APCTT

National Innovation Systems
     Purpose of NIS exercise

Understand Innovation Eco-System and
factors that stimulate innovation
Develop a framework for formulating a
national and/or company innovation strategy
                                         APCTT

    National Innovation Systems
          Origin of the term NIS

Christopher Freeman in 1987 introduced the term
  “National Innovation System” to describe the
       performance of the economically most
     successful country of the post-war period,
                  namely Japan.
                                        APCTT

 National Innovation Systems
       Major characteristics of NIS
A.   Innovation and learning
B.   Holistic and interdisciplinary
C.   Historical background
D.   Differences between NISs
E.   Inter-reaction between elements of NIS
                                             APCTT



National Innovation Systems
     INTERNATIONAL ENVIRONMENT
    (Competition, Globalization, International
obligations/agreements – environment, trade, etc.)
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      Globalization
     Concept of globalization
1980’s : “Internationalization” was the term
used in market, finance, competition and
company strategies (economic perspective)

Now: “Globalization” is the term of a
globalized society resulting from
deregulation and ICT development
(globalized society perspective)
                                            APCTT

        Globalization
 Characteristics of globalization
Increased competition: a company competes with
national companies as well as MNCs in the home
market.

Internationalized manufacturing: manufacturing
resources come from different places: capital, labor,
technologies, raw materials, etc.

Increased trade between specialized companies
                                          APCTT

          Globalization
Big companies and MNCs in a globalized
                economy

   Greater role especially in the high-tech sector
   Grow in the technological environment of
   the nation they belong to
   Create a technological environment in the
   nation they belong to
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       Globalization
     Focus on S&T policy:
 support for S&T infrastructure
S&T education, especially, high educational
institutions
Functions of technology production and
diffusion
Development of strategic technologies
Network between industry, academia and
research institutions.
                                             APCTT


     INTERNATIONAL ENVIRONMENT
    (Competition, Globalization, International
obligations/agreements – environment, trade, etc)




GOVERNMENT POLICY SETTING
                                         APCTT

  Government Policy Setting
Wide consultation during policy framework
                development

Choose opportunities and options today for
tomorrow

Involve major stakeholders

Share common understanding
                                        APCTT

  Government Policy Setting
            Strategic analysis
  during policy framework development

Economic and social demands and opportunities
Cost-benefit analysis
Internal capacity and ability analysis
Resource analysis
External threats and opportunities, internal
strengths and weaknesses
                                       APCTT

  Government Policy Setting
            Intrinsic tensions
  during policy framework development

Science and technology push - demand-pull

Top-down - bottom-up

Stakeholders - third-party
                                          APCTT

  Government Policy Setting
               Implementation

Introduction of new policies and initiation of
new programmes

Re-orientation of on-going programmes

Re-direction of on-going strategies and
management
                                                      APCTT

Government Policy Setting
Major elements of the NIS framework
Promotion of national strategic R&D
Manpower development
Creation of linkages between government supported research
institutions, academia and industry
Commercialization of R&D results
Promotion of venture business
Establishment of business parks and business clusters
Science and technology awareness
Promotion of women entrepreneurship
Introduction of a sound S&T infrastructure
Introduction of a new institution and/or reformation existing
institutions
                                        APCTT

  Government Policy Setting
           Success factors for NIS

Willingness and intention of the top decision
maker

Organizational culture and milieu

Avoidance of NIH (Not invented here
syndrome)
                                                                  APCTT
                 INTERNATIONAL ENVIRONMENT
    (Competition, Globalization, International obligations/agreements –
                         environment, trade, etc)




                GOVERNMENT POLICY SETTING

                  • Goals & Strategy (Short, Medium, Long)
History                                                            Culture
                  • Policy Framework
Society           • Policies of Ministries & Departments            People
                    (S&T, HRD, Commerce, Finance, Legal,
                     Industries Environment, etc.)
                      APCTT
GOVERNMENT POLICY SETTING




  INNOVATION ECO-SYSTEM
                                       APCTT

  Innovation Eco-system
 Key-actors of Innovation Eco-system
Different from one scholar to another and from
country to country

In general
      Government
      R&D institutions
      Industries
      Academia (Universities, technical instns.)
                                       APCTT

 Innovation Eco-system
    Inter-reaction between actors
Innovation is understood as a process of
combination of new and existing knowledge.

Inter-reaction is important because innovative
knowledge comes from various actors and
institutions.
                                     GOVERNMENT POLICY SETTING

*Consultants, advisers, angels,
venture capitalists and companies,                                                                           APCTT
IPR attorneys, standards and
testing centres, certification
                                      INNOVATION ECO-SYSTEM
authorities, technical training                       FACILITATING
centures, technology information                    INFRASTRUCTURE
and business intellegence service
providers, etc.                                     (Insurance, travel, etc.)
                                         Industries                         R&D institutions
                                      (Mfg. & Services)                        & Univ.


                                                 CLUSTERS, SUB-NATIONAL
                                                       SECTORAL

                                                          Intermediaries*

 Foreign Capital                                                                                          SME competitiveness
                                              PHYSICAL INFRASTRUCTURE
 Investment                                      (Road, Rail, Air, S&T parks,
                                               Special Econ./Expo. Zones, etc.)                         International
    International                                                                                       technology &
    market leadership                                                                                   business alliances
                  Mergers and                                                                    NIS Goals
                  acquisitions
                                     Commercialize new Technology                        Multi-national
                                     products &                                          companies
                                                       leadership
                                     services
                                      National Innovation Systems
                                          INTERNATIONAL ENVIRONMENT
                              (Competition, Globalization, International obligation/agreements –
                                                   environment, trade, etc)                                    APCTT

                                           GOVERNMENT POLICY SETTING


                                    • Goals & Strategy (Short, Medium, Long)
               History                                                                             Culture
                                    • Policy Framework
               Society              • Policies of Ministries & Departments                         People
                                      (S&T, HRD, Commerce, Finance, Legal, Industries
                                       Environment, etc.)
                                                                                                             *Consultants, advisers, angels,
                                                                                                             venture capitalists and
                                                  INNOVATION ECO-SYSTEM                                      companies, IPR attorneys,
       International                                                                                         standards and testing centres,
                                                                                                             certification authorities,
       market leadership
                                                           FACILITATING                                      technical training centures,
                                                         INFRASTRUCTURE                                      technology information and
                                                                                                             business intellegence service
 Mergers and acquisitions                                (Insurance, travel, etc.)                           providers, etc.
                                             Industries                    R&D institutions
                                           (Mfg. & Services                                                  SME competitveness
                                                                              & Univ.
Commercialize new                                                                                            International
products &                                         CLUSTERS, SUB-NATIONAL                                    technology &
services                                                 SECTORAL                                            business alliances

                                                           Intermediaries*
                                                                                                               NIS Goals
  Technology
  leadership
                                                 PHYSICAL INFRASTRUCTURE
                                                    (Road, Rail, Air, S&T parks,
 Foreign Capital Investment                                                                           Multi-national
                                                  Special Econ./Expo. Zones, etc.)
                                                                                                      companies
                                                      APCTT
  National Innovation Systems
         (NIS) Project
Project Goal : Promote NIS in Asia-Pacific Countries
Target Group : Policy makers, R&D institutions, universities
and industries
Duration : April 2005 – December 2006
Funded by : Department of Scientific and Industrial Reearch,
Ministry of Science and Technology, Government of India
Output : On-line, off-line NIS networks in the Asia Pacific
region and web-based NIS Resource Centre
Workshops on
National Innovation Systems                                                        APCTT
  Focus Areas
   –   NIS Policy Framework Development and Implementation in Member Countries
   –   Case Studies on Sectoral, Institutional and Organizational Specific Innovation Programmes
   –   NIS Policy Framework and Programmes in the host Country
  Target Group
   –   Senior Officials of various ministeries
   –   Heads of R&D and universities
   –   CEOs of SMEs and industry associations
   –   Other technology development and transfer intermediaries
  Inputs from APCTT
   –   Two resources persons
   –   APCTT professional assistance and participation
   –   Coordination with host organization
  Inputs from host countries
   –   Mobilization of participants and national experts
   –   Host facilities for the workshop
   –   Coordination with APCTT
  Expected outputs
   –   Successfull organization of workshops
   –   At least 50 participants in the workshop
   –   Enhance awareness on NIS and Focus Areas
   –   Papers presented during the workshops are integrated in the web-based NIS Resource Centre
   –   Brief Report/recommendations
Workshops on
National Innovation Systems                                                                APCTT
 Country & Co-org.           Specific Components                                 Output
India, New Delhi              Policy framework of NIS in        12 country representatives in Asia and 6
28-29 April 2005             Asia-Pacific countries            experts as resource speakers, including
                              Experiences, lessons and         UNESCAP and UNCTAD. Total – 29
(Asia-Pacific Forum on                                         participants
                             best practices of NIS
NIS for Senior Policy-
                                                                19 papers were presented at the Forum
makers)
                                                                Printed and e-copy of the report and papers
  Department of Scientific                                     presented are available. The latter is
and Industrial Research,                                       accessible at the Web-based NIS Resource
Ministry of Science and                                        Centre
Technology, Government of                                       Enhanced awareness on NIS and on the
India                                                          specific components

Thailand, Bangkok              NIS - Biotechnology              4 international experts, 5 national experts
21-23 September 2006           Value-creation in bio-          and more than 200 participants (NIS
                             business                          stakeholders)
(held in conjunction with
                               Three parallel sessions – (1)    17 papers were presented during the
InnovAsia 2005)
                             capacity building in Innovation   workshop
 National Innovation         management (2) IPR and (3)         Brief report and papers presented are
Agency (NIA)                 Innovation and                    available on Web-based NIS Resource Centre.
 Ministry of Science and     entrepreneurship                  CD-based version of the papers is also
Technology                                                     available.
                                                                Enhanced awareness on NIS-biotechnology
                                                               and on the specific components
Workshops on
National Innovation Systems                                                                APCTT
 Country & Co-org.          Specific Components                                Output
Sri Lanka, Colombo, 4-5      Innovation policy framework     3 international experts, 2 national experts
October 2005                 Sectoral/organizational case   and 40 participants (NIS stakeholders)
 National Engineering       study                            Group discussions – Policy makers,
Research and Development                                    academia, industriesa and R&D institutions
Centre (NERDC)                                               Enhanced awareness on NIS and on the
 Ministry of Science and                                    specific components
Technology                                                   Papers presented available on Web-based
                                                            NIS Resource centre




Philippines, Quezon City,     Technology innovation for       1 international expert, 3 national experts and
Manila, 6-7 March 2006      the energy and the              150 participants from NIS stakeholders
  Department of Science     environment                       4 papers were presented during the
and Technology,               National Innovation Systems   workshop
Government of the           policy framework and              Papers presented available on Web-based
Philippines                 programs for the philippines    NIS Resource centre. CD-based version of
  Philippine Council for      Technology innovation for     the papers was distributed.
Industry and Energy         industry: Philippines             Enhanced awareness on NIS and on the
Research and Development                                    specific components
(PCIERD)                                                      Exhibition of Philippines innovation
  TAPI
Workshops on
National Innovation Systems                                                                   APCTT
 Country & Co-org.             Specific Components                               Output
Iran, Teheran,                   Sub-national innovation        3 international experts and 200 participants
20-21 June 2006                system for strengthening the    (NIS stakeholders)
                               competitiveness of S&T at the    5 papers were presented during the
  Research Institute of        provincial level                workshop
Technological Develop-
                                 Promoting and nurturing hi-    Papers presented are available on Web-
ment Studies (RITDS)
                               tech start-ups                  based NIS Resource Centre
  Iranian Research
Organization for Science                                        Enhanced awareness on NIS and on the
and Technology (IROST)                                         specific components
  Ministry of Science,                                          Report sent to IROST for publishing
Research and Technology
  Chamber of Commerce of
the Islamic Republic of Iran
Indonesia, Jakarta,              Sub-national innovation        4 international experts, 24 national experts
19-20 July 2006                system approach                 and 200 participants (NIS stakeholders)
                                 Public policy in industrial    28 papers were presented during the
 Ministry of Industry          innovation                      workshop
Government of Indonesia          Socio-technological            Brief report and papers presented are
 Ministry for Research and     innovation studies              available on Web-based NIS Resource
Technology                       Industrial development        Centre. CD-based version of the papers was
 Ministry for National         based on technological          distributed.
Development Planning           innovations                      Enhanced awareness on NIS and on the
 Indonesian Institute of                                       specific components
Science (LIPI)
Workshops on
National Innovation Systems                                                                APCTT
 Country & Co-org.           Specific Components                              Output
India, New Delhi               NIS practices in select       3 international experts,13 national experts
19-20 September 2006         countries                      and 65 participants (NIS stakeholders)
                               NIS policy pramework and      17 papers were presented during the
  Department of Scientific   support mechanisms in India    workshop
and Industrial Research,       Government–Academia-          Brief report and papers presented are
(DSIR) Government of         R&D Institutions-Industry      available on Web-based NIS Resource
India                        linkages in NIS                Centre. CD-based version of the papers is
  Consultancy                                               also available.
Development Centre                                           Enhanced awareness on NIS and on the
(CDC)                                                       specific components
  National Research and
Development Corporation
(NRDC)
India, Nainital                Biotech innovation in         20 national experts and 200 participants
6-7 October 2006             agriculture, health,           (NIS stakeholders)
                             environment and energy          20 papers were presented during the
 Department of                 Human resources              workshop
Biotechnology Ministry of    development and                 Papers presented are available on Web-
Science and Technology,      infrastructures                based NIS Resource centre
Government of India            Biotechnology industry in     Enhanced awareness on Biotechnology
 Kumaun University           India, Biotechnology Parks,    NIS and on the specific components
                             Technology Transfer
                               Biotechnology Information
                             systems and services in Asia
Workshops on
National Innovation Systems                                                               APCTT
 Country & Co-org.             Specific Components                               Output
China, Bejing                    Policy framework for           16 international experts, 3 national experts
27-30 October 2006             initiating sub-national         and 10 participants (NIS stakeholders)
                               innovation system approach       17 papers were presented during the
 United Nation Economic          Experiences, lessons and      workshop
and Social Commission for      best Practices on SIS            Brief report and papers presented are
Asia and the Pacific             Country study: the China      available on Web-based NIS Resource Centre
(ESCAP)                        case                             Enhanced awareness on NIS and on the
 China Council for the                                         specific components
Promotion of International
Trade (CCPIT)
 United Nations Asian and
Pacific Centre for
Agricultural Engineering and
Machinery (APCAEM)


Pakistan, Lahore, 14-15         NIS of selected Asia-Pacific    20 experts and senior officials from 13
December 2006                  Countries                       countries
 Ministry of Science and                                        About 60 participants (NIS stakeholders)
Technology                                                      13 country papers on NIS policy framework
 Pakistan Council for                                          and/support mechanisms were presented
Scientific and Industrial                                      during the workshop
Research (PCSIR)                                                Enhanced awareness on NIS and on the
                                                               specific components
Common Recomendations
from NIS workshops                                     APCTT
 Evolve and formulate, after due consultation and inter-
 ministerial coordination, a national S&T innovation systems
 (NIS) policy framework with clear vision, strategies and
 priorities

 Adopt a top-down or bottom-up or a combination of the two for
 the development and governance of the NIS policy framework
 that includes cluster, sectoral, sub-national innovation systems
 to exploit various competitive advantages of the country as a
 whole.

 Create and strengthen relevant infrastructure, institutional and
 support mechanisms, enhancing interaction and cooperation
 among different NIS key-actors (Government, Industry,
 academia including R&D institutes)
Common Recomendations
from NIS workshops                                       APCTT
 Establish an appropriate framework to foster entrepreneurial
 and innovative activity with emphasis on venture capital
 mechanisms, technology and incubator parks, fiscal incentives
 to commercialize R&D outputs, technology transfer liaison
 offices within NIS key-actors, etc.

 Develop and promote a new educational system that fosters at
 various levels (SMEs, public and private sector, engineering
 and technical institutes) technology-based innovation and
 entrepreneurship with emphasis on R&D and innovation
 management, technology transfer, industry-university
 collaboration, new venture start-ups, intellectual property rights,
 etc.

 Facilitate and promote NIS key-actors to build political and
 social capital, strongly committed to innovation and research,
 based on entrepreneurial culture, trust, cooperation, interaction
 and learning.
            APCTT




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