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Regional Innovation Systems Overview

The document discusses regional systems of innovation and how they contribute to industrial performance through three main points: 1) Economic and technological activities tend to cluster in certain locations due to pooled skilled labor markets, local suppliers, and easy transmission of new ideas. 2) A firm's growth depends largely on the innovative environment and conditions in its immediate proximity, including relationships with external sources of information and informal knowledge diffusion. 3) A regional system of innovation describes the localized network of public and private actors and institutions whose activities and interactions generate, modify, and diffuse new technologies in a region.

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79 views9 pages

Regional Innovation Systems Overview

The document discusses regional systems of innovation and how they contribute to industrial performance through three main points: 1) Economic and technological activities tend to cluster in certain locations due to pooled skilled labor markets, local suppliers, and easy transmission of new ideas. 2) A firm's growth depends largely on the innovative environment and conditions in its immediate proximity, including relationships with external sources of information and informal knowledge diffusion. 3) A regional system of innovation describes the localized network of public and private actors and institutions whose activities and interactions generate, modify, and diffuse new technologies in a region.

Uploaded by

Usman Tahir
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

Regional System of Innovation

By
Iffat Batool Naqvi
April 27, 2009

Technology and Innovation System


Geographical Location Industrial Performance

• First, economic and technological activities show a strong


tendency to agglomerate in certain location
• Second, the performance and the growth of firm depend, to
a large extent, on the condition of the environment in which
they operate, and particularly on those in the immediate
proximity
Fundamental Advantages that cause firms to agglomerate

• A pooled market for skilled workers with industry-specific


competencies
• The availability of non-tradable and intermediate inputs
provided by local suppliers;
• The easy transmission of new ideas, which increase
productivity through technical, organizational and
production improvement
Local or Regional Innovation contexts

• The relation with the sources of information external to the


firm, which are strongly influenced by spatial proximity
• The use of informal channels for knowledge diffusion (tacit
knowledge), which spur the tendency of innovation to be
geographically polarised
• The nature of innovative capabilities, which is highly
cumulative and path dependent

Contextual factors and systematic interactions in the


generation and diffusion of innovation – Key determinants

RSI
Regional System of Innovation

‘The localised network of actors and institutions in


the public and private sectors whose activities and
interactions generate, import, modify and diffuse
new technologies’
(Freeman, 1987; Lundvall, 1992; Nelson, 1993; Nelson and Rosenberg,
1993)

‘High technological density and diversity are properties of


regions rat her than countries’
(Carlsson and Stankiewicz, 1991)
The Globalisation of Technology

• Refer to the wider dimension than the one evoked by


prefixes to the word ‘national’, such as inter-, multi-, trans-
– High degree of interdependence among units that constitute
the MNC
– Higher interrelatedness among geographically dispersed
unit, even with the same level of internationalization of
innovative activities of MNC
Globalisation of Innovation
Recent increase in the intra-firm coordination of innovative
activities of MNC

Global generation of innovation


Wide range of skills and capabilities that only firms with
specific infrastructure, organization and management can attain

Shift MNC as a mere vehicle of technology


transfer towards the crucial role it plays as a
creator of innovation and technological
knowledge
Centralization
• Advantages of the centralization of research and
innovation
• Basically connected to economies of scale and scope of
R&D
• Control on innovation and linkages with national business
and non-business sectors

Decentralization
• Advantages
• Linkages between innovatory activity and foreign
production
• Local markets
• Suppliers and clients
• Exploitation of technological fields of excellence in host
countries
Thank you

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