Assessing Innovation Systems in Australia Don Scott-Kemmis Innovation Management and Policy Program National Graduate School of Management Australian National University. Evolution of Innovation Systems. NIS a useful concept but not yet a strong framework for analysis and evaluation
High dependence on natural resources- 80% of the top fifteen export products are resource-based commodities with a low level of processing
Failing to develop new areas of specialisation and growth
Productivity growth in the 90's the result of one-offs: micro-economic & ICT
Weaknesses in new firm formation
The poor performance in R&D and patenting signals the weaknesses in management, scale and international positioning of Australian industry.
Declining position in many ‘high tech’ sectors indicates the extent to which Australia is being left behind the frontier of innovation and growth- Large and growing trade deficit in ICT products and services
One of the lowest in the OECD in
A broadly based dynamic and flexible economy, diversified across markets, and increasingly sectors, underpinned by competitive domestic markets and flexible labour markets.
High-level human resources and strong research organisations facilitate the rapid uptake of new knowledge produced anywhere.
Imported knowledge and equipment combined with local knowledge and capability supports active problem solving and systems integration in a range of sectors generating relatively high levels of productivity.
A ‘fast-user’ strategy combined with natural and human resources is a sound basis for future prosperity.
Knowledge Based Resource Industries
Systems Integration Plus
Reduce social uncertainty
Incentives to innovate
Create new Knowledge
Recognise the potential for growth
Facilitate Kn & Info Exchange
Stimulate/ create markets
Counteract resistance to change
Based on Johnson, 2001
Innovation Systems Failure Framework Innovation Systems
‘Rules’: System failures
Actors – missing actors
Capabilities failureA Possible Approach to an Innovation Systems Failure Framework
Based on Woolthuis et al (2004)
Knowledge Base Innovation Systems
Actors & Interaction
major corpns brings prof’l mngmt
Dev’t of export market Kn.
Old family companies
Growth of large local wine companies
Breaking out of the euro paradigm
Developing the robust product design and the ‘system’
Kn. Based prod’n
Specialisation in all aspects
Strong training organisations
rural R&D framework.
industry associations effective collective action & lobbying
Strong kn. base in major firms
use of int’l Kn.
new analytical techniques
specialist service providers
Consolidation of the institutional framework.Systemic Problems and Responses in the Evolution of the Wine Industry
Increasing returns Innovation Systems
Standard’n and Reuse of knowledge
Lack of economies of scale
lack of political & social legitimation
Low level of subsides and incentives
Excellent science base but policies have limited the level of experimentation
Relevant but fragmented knowledge base -mainly exploited by overseas innovation systems
Much of the RAPS based knowledge cannot be applied to urban systems
Lack of industrial actors with resources to bring technology to mass-production
Level of incentives to attract large firms
Lack of a national climate for supporting renewable energyEmerging Photovoltaic Innovation Systems
-organisations and institutions for bridging, collaboration, coordination
-Co-evolution of supply and demand,
-Broad kn & education base ensuring diversity for perceptions of problems & opportunities, initiating new trajectories problem solving, renovation of knowledge bases