Enhancing Innovation Capacity

1
Enhancing Innovation Capacity
Tugrul Temel Department of Economics and
Development Research Institute Tilburg
University April 5, 2007
2
Outline

• Background and Literature
• Conceptual framework
• The problem situation
• Applications
• The way forward

3
Background

• Subject is Information Knowledge (I-K)
• I-K in growth models innovation systems
• Institutions ICT use for innovation capacity
  development
• Innovation capacities for interactive learning

4
Literature

• The Solow-Swan model (1956)
• Endogenous growth (Romer 1990)
• RD as a choice variable
• In RD-based models, innovation drives growth
• RD externalities increases economy-wide
  knowledge stock
• Evolutionary growth (Nelson, Winter 1974)
• role of institutions, path-dependency,
  uncertainty
• dynamic firm-specific capabilities rather than
  RD
• difficulty in measuring capacities at the
  aggregate level

5
Literature

• National Innovation Systems
• Freeman 1987 Lundvall 1992 Nelson 1993 Patel
  and Pavitt 1994 Metcalfe 1995
• Common points
• organizations interact in knowledge or technology
  generation, diffusion use
• rules regulations pattern their interactions

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The Problem Situation

• Evolution
• Global/regional networks for I-K exchange
• From individual orgs to networks of orgs
• Agr research systems viewed within innovation
  systems
• Implications for individual orgs
• Link innovation strategies to wider ST policies
• Establish partnerships with private enterprises
• Exploit ICT for better interaction with I-K
  networks

7
The problem situationI-K flow among a broad
range of actors
P
R
B
FX
I
M
Pr
C
X
8
Conceptual Framework
9
Agricultural Innovation System (AIS)

• A set of public and private organizations that
  jointly and/or individually lead to valuable
  changes in agriculture when information
  knowledge are made available and are put into
  socially and economically productive use.

10
Components of an AIS

• Agricultural POLICY, legislative, regulatory
  structure - Ministries, regulatory enforcement
  agencies
• Agricultural Science Technology KNOWLEDGE Base
  - Agr Univ, Res-Ext orgs, NGOs for indigenous
  knowledge
• MARKET System - Farmers, Agro-processors, input
  suppliers, marketing agents, consumers
• EXTERNAL Sector - Donors, International RD Orgs
• Goal to reduce poverty food insecurity

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Assumptions of AIS

• I-K central to economic growth development
• Interactions critical for I-K flow org.
  learning
• Learning as important as direct investment in
  RD
• Innovations take place everywhere in society

12
Innovation Capacities

• Absorptive capacity is strong if I-K receivers
  are competent.
• Linkage capacity is strong if actors in AIS are
  linked and interact.
• Competition capacity is strong if actors invest
  in human capital and learning.

13
Institutions

• rules of the game or humanly devised constraints
  that structure human interaction (North, 1996)

14
Institutions create an enabling environment for
capacity development

• secure the benefits from investment in I-K
• improve rate of I-K generation, diffusion, use
• shape the innovation process by managing
• conflicts (i.e., IPR, enforcement)
• information supply (i.e. labeling regulations)
• uncertainty (i.e. governance of natural resources)

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ICT facilitates capacity development
ICT use enhances the rate of I-K absorption,
exchange and use. ICT penetrates into the
innovation system when absorptive, linkage
competition capacities are strong.
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Application 1Information and Knowledge Flow

• Mapping I-K flow in the AIS
• Components policy (P), research (R), education
  (E), credit (C), extension information (I),
  private enterprises (M), farming (F), consultancy
  (D) and external (X)
• Characterizing the AIS
• Policy recommendations

17
Application 1Information and Knowledge Flow
P
R
B
FX
I
M
Pr
C
X
18
Application 1Cause-effect structure of the AIS
19
Application 2ICT use in Georgia

• Goal assess ICT infrastructure use to
  facilitate AIS for HV sector
• Objective identify pivotal orgs to establish an
  IEN
• Rationale weak market participation due to weak
  I-K exchange
• Constraints Government is not transparent
  pluralistic information flow has not been a
  tradition
• Data collection questionnaire Needs Assessment
  Interviews

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Application 2 Information Exchange Network
P
PM
R
B
FX
I
Information flow by Face to Face Meetings Mass
Media (Radio, Newspapers, TV, Magazines)
Internet/Web Telephony, Call Centers
Information Exchange Network
M
Pr
C
X
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The way forward

• So far a methodology developed
• To characterize the AIS
• To assess ICT use
• Now the challenge is to assess
• the influence of I-K related institutions and ICT
  use on innovation capacity
• the effect of changes in innovation capacity on
  the functioning of the innovation system

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Survey Design Measurement

• Survey of organizations in the innovation system
• Absorption, linkage, competition capacities -
  skills and qualifications of human resources,
  networking capacity, ICT use in I-K exchange
• Org innovation