Arab Open University Jeddah Branch B 300 B

Arab Open University. Jeddah Branch B 300 B Policy Chapter 8 By: WASSIM ALWAN

National System of Innovation

The science & technology policies need to be considered in the context of their 'national system of innovation': Different countries such as Germany and Japan agree on developing technology & science policies that emphasis on 'national systems of innovation' and 'technology support systems' which increase the ability of firm to perceive innovation opportunity and to create technology

The national system of Friedrich list The contemporary idea of 'national system of innovation' goes back to Friedrich list's in 19 th century, which developed policies that allow Germany to catch up technologically with Brittan. The list claims that the current state of nations is a result of accumulation of discoveries and invention produced by previous generations. Therefore, Germany through their science and technology policies had establish 'Technical Training institute' that became the foundation for the superior skill of labor force in many industries. And establish the first in-house R&D department which put the business of research and the development of new chemical processes on regular, systematic and professional basis.

Comparison of national systems of innovation A) Technology & science policy in Japan: Japan success was attributed to imitation, expenditure on civil industrial R&D and strong institutional integration and linkages between R&D, production and foreign technology import at firm level The long-term goals and visions for science and technology system are generated by interactive process involving government, industry and universities. The increase in science and technical activities led to higher products and processes quality especially in electronics that out-perform those in USA

B) The soviet national system Separate Research institute within the academy system, week link between institutions and R&D, negative incentive to innovate and R&D focus on military and space.

The role of TNCs in affecting different content economies Technology & science policy influenced by globalization of competition: Several changes in term of liberalization of capital market and international flow of trade and investment combined with computerization and telecommunication network had led to globalization of competition Therefore many countries in the Third world try to compete by offering incentives and implement policies to attract a flow of foreign inward investment and the associated technology that might lead to economic growth in developing countries.

The offers of developing countries might be unattractive unless they make institutional changes and national systems that are designed to strengthen technological capability within the importing countries Globalization of competition has made the role of nation states more important, especially for developing countries that had to develop national policies to catch up technology.

National and international policies are contrasting: International one encourage standardized generic products and transfer of technology incremental or radical by globalize TNCs, National one encourage local and domestic diversity

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