Subnational Innovation Systems for SME Technological Competitiveness

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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

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Contents

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

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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.

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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

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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

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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.

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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

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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

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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

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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)

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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.

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• Thank you.