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Subnational Innovation Systems for SME Technological Competitiveness

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Title: Subnational Innovation Systems for SME Technological Competitiveness


1
Sub-national Innovation Systemsfor SME
Technological Competitiveness
Committee on Managing Globalization 12-14
September 2006, Bangkok, Thailand
  • Mr. Marinus W. Sikkel
  • Chief, IEDS, Trade and Investment Division
  • UNESCAP

2
Contents
  • What is a SIS?
  • SIS Trends in the Region
  • UNESCAPs Initiative for SIS
  • Conclusion

3
What is a SIS?
  • Since mid-1990s, SIS concept has emerged as a
    policy for regional development (EU).
  • Why a SIS policy approach?
  • Accelerated regionalization in a national economy
    due to globalization and liberalization of trade
  • Regions are now challenged by global competition
    need to develop their unique innovation profiles
  • Regions are the most efficient geographical unit
    to meet such issues as innovation, application
    of new technologies, competitiveness of SMEs,
    etc.

4
What is a SIS? (Cont.)
  • What is the Concept of SIS?
  • A set of institutions or a cooperation system
    to create, diffuse and use new knowledge through
    interaction and learning process among actors in
    a certain region
  • Interactive learning is the key to enhancing
    innovation performance of a local economy
  • SIS policy targets may include not only
    technology, but also overall management
    activities
  • Local SMEs and universities are key actors in the
    SIS promotion process

5
What is a SIS? (Cont.)
  • Process to Set-up a SIS
  • Learning, networking, interaction, innovation and
    dynamic change towards sub-national development
  • Success factors
  • Will and vision of top management of actors
  • Strong ST base and research capabilities
  • Intensive horizontal cooperation among firms
  • Conducive research/business infrastructure
  • Social capital trust, cooperation, innovation
    culture, etc.
  • Many start-up companies, innovative SMEs, MNCs
  • Strong support of both local central
    governments

6
SIS Trends in the Region
  • Japan Set up regional ST governance system in
    the early 1990s initiated regional
    revitalization by setting up SIS (the 3rd ST
    Basic Plan 2006-2010)
  • Republic of Korea Since late 1990s, initiated
    regional ST promotion policy established the
    Five-year Plan for Innovation-led Regional
    Development in 2004
  • China Incorporated provincial ST promotion
    initiatives and technological innovation systems
    of firms in the ST Development Plan (2006-2020)
  • Some countries are initiating a cluster approach
    for SME promotion India, Indonesia, Malaysia,
    Thailand, Singapore.

7
ESCAPs Initiative for SIS
  • Project Title
  • Sub-national innovation systems (SIS) and
    technology capacity building policies to enhance
    competitiveness of SMEs
  • Project Goal
  • Develop and diffuse a SIS policy framework to
    member countries, aiming to
  • Enhance innovation performance of regional actors
  • Strengthen global competitiveness and
    technological capability of local SMEs
  • Mitigate regional disparities within a nation

8
ESCAPs Initiative for SIS (Cont.)
  • Duration May 05 April 07
  • Project Budget US165,000 (KECF)
  • Participating countries 16 countries
  • Bangladesh, Cambodia, China, DPR Korea, India,
    Indonesia, Kazakhstan, Lao PDR, Mongolia,
    Myanmar, Nepal, Philippines, Republic of Korea,
    Thailand, Uzbekistan and Viet Nam

9
ESCAPs Initiative for SIS (Cont.)
  • Activities
  • Phase 1 Policy studies, field survey, e-forum
    and regional meeting to develop a SIS policy
    framework
  • Phase 2 National workshops for capacity building
    of SIS policy development
  • Outcomes
  • Improved knowledge and awareness on the
    importance of SIS among policy makers
  • More countries in the region adopt a SIS policy
    framework for their innovation-oriented local
    development

10
ESCAPs Initiative for SIS (Cont.)
  • The second phase of the project
  • Duration May 2006 April 2007
  • Organize national workshops China (Oct 06),
    Nepal (Dec 06), Thailand (Feb 07), and Mongolia
    (Apr 07)
  • Topics for national workshops (e.g.)
  • RD globalization for local SMEs
  • Public/private partnership for SIS
  • Governance for provincial ST and innovation
  • Tech intermediaries (Cluster/Incubator/ST park)
  • Sectoral Innovation Systems for new technologies
  • Intellectual property rights (IPRs)

11
Conclusion
  • Recently, the UN emphasized the vital role of
    science, technology and innovation in achieving
    MDGs, (2005 World Summit Outcome).
  • SIS approach is a new policy instrument, but
    attracts much attention from policy makers.
  • In the AP region, few countries are adopting SIS
    policy for their regional competitiveness.
  • UNESCAP continues to assist member countries in
    developing SIS policy and initiatives.

12
  • Thank you.
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