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Innovation systems notes

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Lecture notes of 38 pages for the course Innovation Systems at UU (IS notes)

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  • December 11, 2021
  • 38
  • 2020/2021
  • Class notes
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Lecture 1 introduction

Innovation does not take place in isolation, but is a collective act & influenced by many factors

Three components of a system:

• Shared function or goal
• Comprised of components and interactions
• Has observable boundaries

Demand en supply side met daartussen een tussenliggende infrastructuur.

Lecture 2 systemic structure

Developments leading to (N)IS

Linear model:

• Technology push: no demand
• Promising technology and marketing help overcome all obstacles
• Linear process: ‘steps follow up smoothly’ – true?
• ‘linear model’-based policy unsuccessful: considered no feedback loops

Shortcoming led to:

The chain link model of innovation




• Invention and innovation are demand driven
• Innovation is a learning process involving multiple inputs
• Steps less linear but with feedback loops, many actors involved

1987 > (national) innovation systems are emerging because of the obsolescence (achterhaaldheid) of
other systems

,Why develop NIS?

• Developed to foster EU competitiveness:
o 80s-90s: international trends threaten competitiveness
• Innovation important for economic growth

3 characteristics of IS

1. System shares a goal/main function
o Overall goal of IS: To develop, diffuse & use innovation
2. Two constituents: components and interactions
o (The same for any type of IS)
o Structural components
▪ Organizations (players, actors): formal structures that are consciously created
and have an explicit purpose
• Suppliers, producers, distributors, banks, venture capitalists,
educational bodies, governments, NGOs, etc.
• National differences: public R&D (US) vs. corporate R&D (JPN)
▪ Infrastructure / materiality / technology: The physical objects that support
innovation
• Roads, refueling stations, internet, smart phones, etc.
• Confusion: knowledge & investment infrastructure
▪ Networks
• Strong vs. weak links
• Key to knowledge exchange, production chains, collaborative R&D...

, • Institutions: sets of common habits, norms, routines, established practices, rules or laws
that regulate the relations and interactions between individuals, groups and organizations.
i.e. ‘rules of the game’
o Formal (hard) institutions: rules that are codified and enforced
o Informal (soft) institutions: tacit rules, shaped by collective interaction
▪ Normative rules: social norms and values with moral significance
▪ Cognitive rules: collective mind frames



→ Supply side

Includes the whole supply chain of products & services:




→ Demand side

Different consumer wants & needs:

• Segmented markets
• Culture: affects uptake of innovation
• Innovations may require new consumer behaviors



→ Knowledge & investment

Dutch research takes place in:

• Universities & medical centers
• Research institutes
• Companies



→ Government


• Different types of government policy instruments:

, o Regulations
o R&D subsidies
o Sales incentives, fiscal policies and buyer (PPI)
o Finance: InvestNL
• Policy made at different levels:
o Local, provincial, national, regional (EU), global
• Government is advised by agencies



→ Intermediaries
• Organizations that bring different actors together: Innovation alliance of government, private
sector, universities and research centers
• Lobby organizations



Interactions: Interrelations between components

• Institutions set restrictions for actors
• Actors influence each other & Institutions



3. There are observable boundaries to the system
• Geographical (RIS/NIS)
• Technological (TIS)
• Sectoral (SIS)
• Societal function (MLP = sociotechnical system (=interactie tussen technologie en samenleving))



Future of IS:

• National
o Big regional innovation differences
o Regional differences in institutions
o Knowledge spillovers & exchange are local
o Supra-regional: too much diversity & complexity!
• Regional
o National language, culture, networks, education, policy
▪ determines innovation patterns
• Global
o Globalization effects very impactful & overlooked

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