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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

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slide1

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
Evolution of Innovation Systems
  • NIS a useful concept but not yet a strong framework for analysis and evaluation
  • Innovation systems approaches challenging to apply in Australia – fragmentation, international links.
  • Systemic failure can be a driver of evolution
  • Analysing how innovation systems evolve and respond to failure should give insight into the NIS
the laggard perspective on australia
The Laggard Perspective on Australia

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

  • BERD
  • investment in venture capital;
  • International patenting activity (per mill. Population)
the boom perspective on australia
The Boom Perspective on Australia

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.

  • High and increasing productivity;
  • Relatively high level of public sector R&D;
  • Substantial growth in niches markets in key manufacturing sectors: automobiles and components, wine, boats.
  • Maintaining strong competitiveness in resources sectors through the effective application of new technology, including IT;
  • A strong ICT services sector and high growth in ‘knowledge based services’;
  • Rapid and broadly-based uptake of new ICT.
characteristics of australian innovation 1
Characteristics of Australian Innovation-1

Knowledge Based Resource Industries

Conservative Evolution

  • Scientific strengths
  • Technological specialisation
  • Patenting behaviour
  • Specialisation in export products
slide6
Changes in ‘revealed comparative advantage’ in Australian scientific publications output in four periods
characteristics of australian innovation 2
Characteristics of Australian Innovation-2

Systems Integration Plus

  • No core technology production
  • Problem solving – but sophisticated
  • Technology mobilisation for resource based industries and services
  • ICT diffusion through the innovation system
approach to analysis looking at change sectoral approach more or less
Approach to Analysis: Looking at Change.Sectoral Approach– more or less!
      • Building Blocks
    • Actors and Networks: interaction, competences
    • Knowledge Bases: appropriation, acquisition, increasing returns
    • Institutions: coordination, incentives, ‘rules of the game’, standards.
    • Technological structure
  • Problem solving
innovation system evolution phases
Innovation System Evolution Phases

Techno-economic opportunity

Emergence

Growth

Renovation

Techno-economic problem

a possible approach to functions in the evolution of innovation systems
A Possible Approach to Functions in the Evolution of Innovation Systems

Guide Search

Resource supply

Reduce social uncertainty

Incentives to innovate

Identify Problems

Create new Knowledge

Selection

Recognise the potential for growth

Facilitate Kn & Info Exchange

Stimulate/ create markets

Counteract resistance to change

Based on Johnson, 2001

a possible approach to an innovation systems failure framework

Innovation Systems Failure Framework

 ‘Rules’: System failures

Actors – missing actors

Demand

Compan’s

Kn. Org’ns

Third Parties

Infrastructural failures:

Institut’l failure

Hard:

Soft:

Govern’ce

Interact’n failure

Weak

Strong

Capabilities failure

A Possible Approach to an Innovation Systems Failure Framework

Based on Woolthuis et al (2004)

systemic problems and responses in the evolution of the wine industry

Knowledge Base

Actors & Interaction

Institutions

1960s

Excess capacity

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

1970

Developing the robust product design and the ‘system’

Kn. Based prod’n

Specialisation in all aspects

Strong networking

Strong training organisations

rural R&D framework.

industry associations effective collective action & lobbying

Export standards

Industry ‘visions’

1980-2000

Rapid growth

Strong kn. base in major firms

Kn. sharing.

use of int’l Kn.

new analytical techniques

Increasing scale

specialist service providers

vocational training.

Consolidation of the institutional framework.

Systemic Problems and Responses in the Evolution of the Wine Industry
emerging photovoltaic innovation systems

Increasing returns

Institutional Alignment

Standard’n and Reuse of knowledge

System Failures

(examples)

Lack of economies of scale

Ad-hoc policies

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 energy

Emerging Photovoltaic Innovation Systems
focus and change
Focus and Change
  • Specialisation and Coordination

-organisations and institutions for bridging, collaboration, coordination

  • Local problem solving and global search
  • Focus and Diversity

-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

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