1 National innovation systems Sub-regional seminar on the commercialization and enforcement of intellectual property rights Skopje, Macedonia April 2009

2 Innovation Facts Innovation and growth Innovation process National innovation systems Innovation actors Role of the state in the NIS Innovation supportive infrastructure Innovation policy instruments Future challenges Today’s presentation

3 Innovation is an old phenomenon Humans tend to think about new and better ways of doing things and try them out in practice Innovation facts

4 Innovation is essential for a country’s competitiveness Innovations can become products that drive growth Institutions are important for the support of innovative activities Innovation and growth

5 Basic research Applied research Development Commercialization New knowledge Application of knowledge to specific subject Development of products Need for new knowledge Desired new product characteristics Market feedback (desired product alterations) Innovation – non-linear process

6 Overlap between basic and applied research, as well as between development and commercialization Principal investigators, patents and processes are mobile (not company dependent) Unexpected outcomes Complexity of the innovation process

7 New knowledge creation Application of knowledge into new products Commercialization of products Particularized companies Innovative enterprises Academy of science Universities Academy of science Universities Complexity of the innovation process – Cont.

8 Different stages and different actors need different support InventionInnovation Complexity of the innovation process – Cont.

9 Inventions need specific demand, production capabilities, inputs, complementary inventions and innovations to succeed at the innovation stage Complexity of the innovation process – Cont.

10 National innovation systems – different institutions and their interaction (technical, commercial, legal, social, and financial), which influence the innovation process and give direction of the technological changes in the society. Differs for different countries Need to be flexible, adjust to the needs of the society National innovation systems

11 Innovation actors

12 States need to create the framework conditions for incentives for innovation With efficient instruments there can be strong support with less state investments Direct support assumes non-existence of information asymmetry  let the market make the decision Role of the state in the NIS

13 Higher education system (supply of labor) Knowledge intensive business services IPR Enforcement Supply of knowledge Entrepreneurship friendly environment Local, regional and international interaction possibilities Innovation supportive infrastructure

14 Incentive for innovation Knowledge transfer Efficiency of the investments Costs of IP protection (efficiency losses from support of innovation, double investments in R&D) Innovation supportive infrastructure - Protection of IPR and Innovation

15 Adoptive capacity Freedom for experimenting Entrepreneurship supportive environment Innovation supportive infrastructure - Innovation supportive culture

16 Teach next generations Conduct research Commercialize Provide: A return to public investments in research A source of new companies and jobs Justification for new research allocations Services to companies within the innovation ecosystem (clusters) Innovation supportive infrastructure - Role of the universities

17 Provide infrastructure Encourage entrepreneurial culture, research cooperation and public support for research Attract industry and promote regional development Innovation supportive infrastructure - S&T Parks

18 Potential investors do not have perfect knowledge, information asymmetry for new innovative ideas Institutions for innovation financing (exp. venture capital) Innovation supportive infrastructure - Financing innovation

19 Importance of the SMEs – small companies can drive high-tech innovation Knowledge intensive SMEs SMEs support: information on financing possibilities creation of business plans improvement of the SMEs infrastructure implementation and coordination of SMEs support organizing networking education and trainings consulting services support for knowledge transfer management and marketing research R&D support Innovation supportive infrastructure - SMEs

20 IPR enforcement Technology Transfer Technology parks and centers Networks Support for financing Marketing/promotion support Innovation policy instruments

21 Stronger NIS Learn from each other Regional Innovation systems Cooperation, cooperation, cooperation Future challenges

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