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Enhancing Innovation Capacity

Tugrul Temel Department of Economics and Development Research Institute Tilburg University April 5, 2007. Enhancing Innovation Capacity. Outline. Background and Literature Conceptual framework The problem situation Applications The way forward. Background.

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Enhancing Innovation Capacity

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  1. Tugrul Temel Department of Economics and Development Research Institute Tilburg University April 5, 2007 Enhancing Innovation Capacity

  2. Outline • Background and Literature • Conceptual framework • The problem situation • Applications • The way forward

  3. Background Subject is Information & Knowledge (I-K) • I-K in growth models & innovation systems • Institutions & ICT use for innovation capacity development • Innovation capacities for interactive learning

  4. Literature • The Solow-Swan model (1956) • Endogenous growth (Romer 1990) • R&D as a choice variable • In R&D-based models, innovation drives growth • R&D externalities increases economy-wide knowledge stock • Evolutionary growth (Nelson, Winter 1974) • role of institutions, path-dependency, uncertainty • dynamic firm-specific capabilities rather than R&D • difficulty in measuring capacities at the aggregate level

  5. Literature National Innovation Systems Freeman 1987; Lundvall 1992; Nelson 1993; Patel and Pavitt 1994; Metcalfe 1995 Common points • organizations interact in knowledge or technology generation, diffusion & use • rules & regulations pattern their interactions

  6. The Problem Situation Evolution • Global/regional networks for I-K exchange • From individual orgs to networks of orgs • Agr research systems viewed within innovation systems Implications for individual orgs • Link innovation strategies to wider S&T policies • Establish partnerships with private enterprises • Exploit ICT for better interaction with I-K networks

  7. F Organizations in NARS: Policy (P), Research (R), Farming (F), External (X) Organizations outside NARS: Finance (B) Input Supply (I), Marketing (M), Agro-processing (Pr), Consumption (C) Linkages between any two organizations FX Linkage between Farming and External organizations The problem situationI-K flow among a broad range of actors P R B FX I M Pr C X

  8. Institutions ICT use Facilitate Innovation Capacity Conceptual Framework

  9. Agricultural Innovation System (AIS) A set of public and private organizations that jointly and/or individually lead to valuable changes in agriculture when information & knowledge are made available and are put into socially and economically productive use.

  10. Components of an AIS • Agricultural POLICY, legislative, regulatory structure - Ministries, regulatory & enforcement agencies • Agricultural Science & Technology KNOWLEDGE Base - Agr Univ, Res-Ext orgs, NGOs for indigenous knowledge • MARKET System - Farmers, Agro-processors, input suppliers, marketing agents, consumers • EXTERNAL Sector - Donors, International R&D Orgs • Goal: to reduce poverty & food insecurity

  11. Assumptions of AIS • I-K: central to economic growth & development • Interactions: critical for I-K flow & org. learning • Learning:as important as direct investment in R&D • Innovations: take place everywhere in society

  12. Innovation Capacities • Absorptive capacity is strong if I-K receivers are competent. • Linkage capacity is strong if actors in AIS are linked and interact. • Competition capacity is strong if actors invest in human capital and learning.

  13. Institutions rules of the game or humanly devised constraints that structure human interaction (North, 1996)

  14. Institutions create an enabling environment for capacity development • secure the benefits from investment in I-K • improve rate of I-K generation, diffusion, use • shape the innovation process by managing • conflicts (i.e., IPR, enforcement) • information supply (i.e. labeling regulations) • uncertainty (i.e. governance of natural resources)

  15. ICT facilitates capacity development ICT use enhances the rate of I-K absorption, exchange and use. ICT penetrates into the innovation system when absorptive, linkage & competition capacities are strong.

  16. Application 1Information and Knowledge Flow • Mapping I-K flow in the AIS Components:policy (P), research (R), education (E), credit (C), extension & information (I), private enterprises (M), farming (F), consultancy (D) and external (X) • Characterizing the AIS • Policy recommendations

  17. F Organizations in NARS: Policy (P), Research (R), Farming (F), External (X) Organizations outside NARS: Finance (B) Input Supply (I), Marketing (M), Agro-processing (Pr), Consumption (C) Linkages between any two organizations in the AIS FX Linkage between Farming and External organizations Application 1Information and Knowledge Flow P R B FX I M Pr C X

  18. Application 1Cause-effect structure of the AIS

  19. Application 2ICT use in Georgia • Goal: assess ICT infrastructure & use to facilitate AIS for HV sector • Objective:identify pivotal orgs to establish an IEN • Rationale: weak market participation due to weak I-K exchange • Constraints: Government is not transparent; pluralistic information flow has not been a tradition • Data collection: questionnaire & Needs Assessment Interviews

  20. F Organizations in NARS Additional organizations in the AIS Linkages between any two organizations in the AIS Application 2 Information Exchange Network P PM R B FX • Information flow by: • Face to Face Meetings; Mass Media (Radio, Newspapers, TV, Magazines); Internet/Web; Telephony, Call Centers I Information Exchange Network M Pr C X

  21. The way forward So far a methodology developed • To characterize the AIS • To assess ICT use Now the challenge is to assess • the influence of I-K related institutions and ICT use on innovation capacity • the effect of changes in innovation capacity on the functioning of the innovation system

  22. Survey Design & Measurement • Survey of organizations in the innovation system • Absorption, linkage, competition capacities - skills and qualifications of human resources, networking capacity, ICT use in I-K exchange • Org innovation – motivation for the innovation concerned; resources used; consequences for organizational performance • Org linkage – nature (codified/tacit), type (coop./ partnership), strength, cost (free/subscription) of interaction with I-K sources (open/limited) • Characteristics of I-K flow - direction, nature (codified/tacit), strength & means of I-K transfer (capital goods, new employees, patents, licenses) • Perceived degree of influence - Org A is said to influence org B if the I-K originating from A motivates or is used in B’s innovation activities • Apply concepts and principles of systems analysis & graph theory • Econometrics for estimating ICT’s impact on learning/org change

  23. Thank you…

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