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Social Networks in Dynamics of National Innovation Systems

Social Networks in Dynamics of National Innovation Systems. Natalia Agapitova, PhD The World Bank. The centrality of interactions in the studies of NIS.

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Social Networks in Dynamics of National Innovation Systems

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  1. Social Networks in DynamicsofNational Innovation Systems Natalia Agapitova, PhD The World Bank

  2. The centrality of interactions in the studies of NIS • NIS is an interactive set of national institutions and economic actors whose activities contribute to the technological and economic development of the country INTERACTIONS • Interactions are not limited to market interactions

  3. NIS Dynamics • Interactive learning as a main source of institutional and technological change • Endogenous growth theory (Romer, 1990) The Role of Social Linkages • Social relations are omnipresent and cannot be overlooked • ’Beneath most formal ties, lies a sea of informal relations’ (Powell et al., 1996, p. 120)

  4. Social Networks Analysis •  Interactions: Arm’s-length VS socially embedded • Socially embedded interactions: strong and weak ties • Social resources: trust, circulation of knowledge, new opportunities • Heterogeneous structures

  5. Social Networks Dynamics • Embeddedness process: establishment of a social tie • Decoupling process: loosening of a social tie • Social gel: society as a scope of possibilities rather than a structured set of actors

  6. Social Processes in NIS Dynamics Embeddedness Market Regime Forms of interactions are established by formal institutions (arm’s-length ties) Network Regime Forms of interactions are established by informal institutions (embedded ties) Firms Organizations Individuals Decoupling

  7. Impact of Social Networks on NIS Dynamics • Social barriers to innovative activities: over-embeddedness • Institution-building process • Heterogeneity of NIS internal structures

  8. Features of an efficient NIS • Technologically advanced economic actors (firms, individuals, etc.) that possess economic and social capabilities. • Developed formal institutions that provide a full range of services and legal basis that support economic and innovative activities. • Open, flexible and dynamic social networks that generate trust, cooperation, facilitate knowledge flows and support entrepreneurial activities by providing support and opportunities for innovative activities of individual actors.

  9. Features of an inefficient NIS • Immature industry and private sector with insufficient economic and technological capacities of individual actors (including poor human capital development). • Underdeveloped, corrupt or unstable institutional system that fails to provide the rules of interaction in the market regime. • Lack of social cohesion (unwillingness of the actors to engage in social relations), over-embeddedness, domination of particular social network or type of networks.

  10. Four Types of Networks of Innovation

  11. From NIS as analytical frameworktowards NIS as a development tool • Sources of system failures • Sources of the dynamics • Institution-building process • Emergence and development of an efficient NIS

  12. Conclusions • Social sources of NIS dynamics and systemic failures • From undifferentiated framework to the studies of heterogeneous internal structures • Need for a more systematic research of the interaction between social structures, institutions and private firms

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