1. Innovation and Technology Transfer Diogo Mendonça João Sousa Instituto Superior Técnico M. Sc. Programme – “ Enginnering Policy and Management of Technology”, 2001 Lecture 1 Technical Innovation and National Systems Richard Nelson, Nathan Rosenberg (1993)

2. Agenda 1 – Introduction 2 – Main Features of this Survey 3 - The Intertwining of Science and Technology. - Science and Technology. What comes first? - Innovation Framework. 4 - The Major Institutional Actors - Firms, Research Labs, other. 5 - Technological Communities 6 - National Systems and Transnational Technology 7 - Conclusions

3. INTRODUCTION Identify Institutions and mechanisms supporting technical innovation across 15 countries. Similarities and differences among 15 different countries. Evaluate the differences on National Systems and their importance.

4. MAIN FEATURES OF THIS SURVEY This study evolves 15 countries, where similar studies are focused on 2 countries. (usually one is Japan). Considering a broadly analysis on the factors influencing the national technological capabilities. - Considering Innovation as a broadly concept, (economic performance stimulus, economic rents) - System: a set of institutional actors that together drives to innovative performance. Not only well designed and built.

5. Science or Technology. What comes first ? Technological advance is generated by university scientists and engineers attached to firms, government agencies, needing of many fields of science. New ScienceNew Technology (electrical equipment industries) Faraday (e.mag induction) Hertz (radiowaves) Incandescent light Radio, TV.

6. New ScienceNew Technology (aircraft industries) Aerodynamics and Aeronautical engineering (aircraft design) Wright Brothers “flying apparatus” (1903) Science or Technology. What comes first ? (2) both pathways: INTERTWINING Industrial R&D expenditures are mainly on products that were invented long time ago.

7. SUCCESSFUL INNOVATION Engineering Design Capability Higher Scale Technology Defined Goal Pilot Plant / Prototype INVENTION New process/product that works well INNOVATION FRAMEWORK

8. INNOVATION SYSTEM Nations that foster these linkages will thrive; those that do not will decline. All of the components of the system interact with each other The health of a country's wealth creation capacity depends on the linkages between the various sectors in its national innovation system

9. MAJOR INSTITUTIONAL ACTORS FIRMS INDUSTRIAL RESEARCH LABS UNIVERSITIES GOV. LABS

10. FIRMS INDUSTRIAL RESEARCH LABS - became the dominant focus of R&D by the end of WWI because: after sometime a technology needs recicling with improvements, the knowledge to do so resides on those who use it, generally firms. Profiting from innovation, requires integration of activity, planing of R&D, production and marketing wich tends to proceed much more effectivly within na organization that itself does all of these.

11. UNIVERSITIES GOVERNMENT LABS UNIVERSITIES PLAY AN EXTREMELY IMPORTANT ROLE IN TECHNICAL ADVANCE, WHERE MOST OF THE BASIC RESEARCH IN FUNDAMENTAL SCIENCES IS UNDERTAKEN. GOV LABS ALSO ARE AN IMPORTANT PART OF MANY INNOVATION SYSTEMS ( ex: Max Planck Institute in Germany) But, innovation involves much more than R&D and the set of institutions that influence the technological capabilities of a nation... Economic policies Education Financial Institutions

12. GOVERNMENT LABS

13. Lack of distinctivness surrounding the concept of R&D small firms engage in significant design and development work yet do not have a formally designated R&D department. In many firms process engineering is located organizationally in production not in R&D patterns of labour, financial institutions, schooling and training all mold innovation... The NIS cannot be separated from economic system INNOVATION involves much more than R&D:

14. INTERINDUSTRY DIFFERENCES Nations differ in the mix of industries and these differences alone strongly influence the shapes of national innovation systems technical advance in system-product technologies proceeds trough a combination of improvements in components the larger the system, the greater the role of component producers

15. INTERINDUSTRY DIFFERENCES BOEING - manufacturers may not proceed to design stage until purchase commitments from airline buyers IBM - altough highly dependent on component suppliers the buyers are less involved in shaping details of product design. PHARMACEUTICALS - altough they are not subject to continuing incremental improvement, they may be subject to tailoring to fit the needs of different kind of customers, and once this products do not involve complex systems, input suppliers do not play a big role.

16. NATIONAL SYSTEMS AND TRANSNATIONAL SYSTEMS - National systems are defined by policies and programs of national governments, laws of a nation and existence of a common language and a shared culture. - Technological activities like radio and synthetic fibers, stem from “building on each other’s work” relating UK, USA and Western Europe and are cases of transnational systems.

17. CONCLUSIONS Industrial R&D expenditures are mainly on products that were invented long time ago. Successfull innovation implies Engineering Design. Science and Technology Intertwining with a leveled advance for both. “ whether, and if so in what ways, the concept of a “national” system made any sense today...” ”...national governments act as if it did.” “ there is a tension caused by the attempts of national governments to form and implement national technology policies, in a world where business and technology are increasingly transnational.”

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