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Innovation Capacity – Problems and Solutions for Successful Development

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Renate Lukjanska at Social innovation centre, Latvia
Renate Lukjanska
  • Social innovation centre, Latvia
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Innovation capacity has to be viewed as a consequence of properly operating innovation system. Well established and functioning innovation system is a result of enhanced by government innovation policy. In comparison with other European Union (EU 27) countries, innovation capacity indicators in Latvia remain low and considerably underperform, reflected in the 'European Innovation Scoreboard 2008', where Latvia took the 30th place among 32 countries. Problems and solutions are illustrated to represent innovation capacity in Latvia. This article consists of the following parts: first-theoretical aspects are selected to describe the essential definition of the analyzed subject. In the second part, experience from abroad is described, at the end – Latvian innovation policy and situation is analyzed and suggestions for further needs are formulated. The main results of analysis show that only a few elements of innovation capacity building are functioning at Latvian enterprises, whose aim is to build a base for the innovation capacity of the country.
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All content in this area was uploaded by Renate Lukjanska on Jun 28, 2014
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

DEVELOPMENT



Abstract. 


      


                





Introduction
     
      
        
     
        
        
     
        

     
     
 


      
        
    
      
     

      
     
  


        
        
      




      


Materials and Methods
        
    
       
      

        
      
 
      





    
      
     
       


       
     

     




         
    


    
       

    
     

      
     

      




    
    
     
     

     

Results and Discussion
Innovation capacity and innovation system denition.
     
   

  

       
      
    
      
       
      


       

     

       



        
      
   
      
    

       



     
        
        
      
  
       

       



       
       
     
  
     
       

      
    
         

     
        

    

        At
       
     
       
       
        
      
      

     
 
Innovation system and governance role.
      




Internal determinants:
• Personnel – scientists,
managers, employees
• Venture capital availability
• Knowledge and
competence
• Innovative internal
environment (internal
support)
External determinants:
Industry
Innovation system –
R&D availability,
financing availability,
knowledge availability
Quality of education
Cooperation
possibilities, clustering
Market demand






       
going
    

     
    
       
 
      
     
       


     

     

  
    

    

     

     
      


       
       
      
 
         
       
        
 

     
       
      

     

      
       
       
     





   
  
         

        
      
      




      
     




  
        



     
        
     

  
   


        
      
      
      


     
     
      
       

    
      

     
      
      
      

     
     
      
  
         

  

Innovation policy in Latvia.
     
      
      
     
 







       








        
    
     

 

     

    
    
      

      
     


        
      
     



      
     
    
     

 
       
       
       

       
      
       

Entrepreneurship in Latvia.
       
       
 
     




      
      

  
      

       
     
 







  
       
       

  


     


 
    
     

      

     
  
    


       
   
 

       
       
        
   
   









 
   
      
      

     
    
      
         

      



         
        
     



      
       
     
       
        


     
       
     
        
    
    
      
 
      
        

       
      , it
       

      
       
 

        
     

       
       
 

     
       



     

      
       
      
 

       



 

  
         
      

        
      

   

      
      

     
      
     .  
      

     


       




  


       
       
      

Innovation capacity in Latvia.
     
     

 


        
     
       
       
      

     
     

 
      





       
th
        

       

    



       

     




Proposals for improvement.

       


     
       

  
        

    
 
     
    

    
       
      


     
         
     

     
      


Conclusions
         

     

     
     
    


      



       
     
       

      
      
       
     
     


 

    


 
        

 


      

       
        
     
     
       
   

References
 
 
              

 

 

 






 

 
 

    

     

         
   

  

        



  

           
             


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

    



        






  
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



Supplementary resource (1)

Innovation capacity
Data
June 2014
Renate Lukjanska
... There are several authors in Latvia that have been writing on innovations and knowledge based economy like innovative activities (Boļšakovs, 2008), innovation process and system (Dimza, 2003), knowledge society (Karnītis, 2004), innovation capacity (Lukjanska, 2010). ...
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Summary of the Doctoral Thesis
Thesis
Full-text available
  • Jun 2014
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World Bank. 2006. Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems
Book
Full-text available
  • Nov 2006
Knowledge intensiveness has featured prominently in most strategies to promote agricultural development. In the past strengthened research systems may have increased the supply of new knowledge and technologies, but that has not necessarily translated into enhanced agricultural growth. Knowledge converts into products and services through an innovation system -- a network of organizations, enterprises and individuals focusing on bringing new knowledge into economic use, together with the institutions and policies that enable a well-functioning network. This book assesses the usefulness of the innovation systems concept in guiding investments to support knowledge intensive, sustainable agricultural development for developing countries and its collaborators.
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Technical Change and Economic Theory
Book
Full-text available
  • Jan 1988
Explores a new approach to economic theory capable of incorporating technical and institutional change into the mainstream of economic analysis and policy making, rather than considering them as residual or exogenous factors. The study suggests possible explanations and interpretive hypotheses and attempts to fit historical evidence to them. After an introductory chapter raising some fundamental epistemological issues, and outlining the structure of the book and its arguments, there are six major sections on: a wider framework for economic analysis; an assessment of established theory; innovation and the evolution of firms; national systems of innovation; international diffusion of technology and international trade competition; and formal models, followed by a chapter discussing policy conclusions. -P.Hardiman
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Systems of Innovation: Technologies, Institutions and Organizations
Book
Full-text available
  • Jan 1997
Innovation and technical change play significant roles in both firm and economic growth, resulting in the creation of knowledge and the formation of new products. Due to the competitive aspects of innovation, firms often interact with and share and/or exchange information with other organizations, including other firms and universities, to further their innovative pursuits. Additionally, other factors, such as laws, cultural norms, and social rules, impact a firm's innovative abilities and behaviors. Organizations and institutions, economic infrastructures, sectoral innovation systems, and national imaginations all have a role in innovation systems. This edited work is composed of 17 essays, providing differing perspectives. To better understand the systems of innovation approach to business, this book examines three significant issues: part one dissects conceptual problems related to the theory of the systems of innovation approach; part two discusses the relationship between the systems of innovation approach and other innovation theories; and part three promotes greater understanding of the dynamics of systems of innovation. The various systems of innovation approaches have nine common characteristics: innovations and learning at the center of focus; holistic and interdisciplinary; historical perspective; differences between regional systems (no optimal system); interdependence; encompasses both technological and organizational innovations; institutions are central; conceptual ambiguity; and conceptual frameworks rather than formal theories. The creation and distribution of technological knowledge, including interindustry differences, are also explored. Evolutionary theories of economics and the ways in which they influence the systems of innovation approach are examined. The influence of policy upon technological change is also discussed, as are Technological and institutional change as components in the creation and change of innovation systems. Challenges to the systems approach are examined, including policy-based challenges to firms, paradigmatic shifts in innovation systems, and differences among European systems of innovation. (AKP)
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Invention, Inventive Learning, and Innovative Capacity
Article
  • Jan 1990
  • SYST RES BEHAV SCI
The contrasting performances of individual and corporate invention are analyzed from a long-term perspective, by exploring, first, the process of resource allocation to invention. Experimential learning, experimentation, and uncertainty are assumed to be important micro-level characteristics of inventive processes, and are incorporated in a basic learning model of resource allocation and performance. Decision-making behavior in adaptive systems, derived from the work of Simon (1955, 1962), provides a link between the scientific system's microlevel perspective and its macro effects on long-term socieconomic patterns of change and stability. The process of invention is then related to the macrosocietal innovative capacity, by analyzing inventive performance over a 106-year period (1880–1986) with U.S. invention patent data. Fluctuations in the age distribution of patents, or age cycles, provide insights on the temporal structure of the societal innovative capacity, and help predict its fluctuations. The relationships between innovative capacity, individual and corporate invention, and long-term socio-economic trends are then explored statistically. The societal innovative capacity and, more significantly, corporate invention, explain a substantial proportion of long-term changes in net national income. Despite the importance of corporate inventive performance, the relationship between corporate invention and national income carries greater potential risk, however. National income trends are found to be important statistical predictors of new annual corporate inventive output, exposing the latter's potential vulnerability to major economic crises.
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National Innovation Systems: A Comparative Analysis
Article
  • Jun 1993
Expert case studies This book is about national systems of technological innovation. The heart of the book consists of studies of 17 countries, including the large market-oriented industrialized countries, several smaller high-income countries, and a number of newly industrialized states. The studies have been carefully designed, developed and written to illuminate the institutions and mechanisms supporting technological innovation in the various countries, the similarities and differences across countries, and how these came to be.
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Innovation and Industry Evolution
Book
  • Jan 1995
It once took two decades to replace one-third of the Fortune 500; now a subset of new firms are challenging and displacing this elite group at a breathtaking rate, while armies of startups come and go within just a few years. Most new jobs are, in fact, coming from small firms, reversing the trend of a century. David Audretsch takes a close look at the U.S. economy in motion, providing a detailed and systematic investigation of the dynamic process by which industries and firms enter into markets, either grow and survive, or disappear. He shapes a clear understanding of the role that small, entrepreneurial firms play in this evolutionary process and in the asymmetric size distribution of firms in the typical industry. Audretsch introduces the large longitudinal database maintained by the U.S. Small Business Administration that is used to identify the startup of new firms and track their performance over time. He then provides different snapshots of the process of industries in motion: why new-firm startup activity varies so greatly across industries; what happens to these firms after they enter the market; the extent to which entrepreneurial firms account for an industry's economic activity and why that measure varies across industries; how small firms compensate for size-related disadvantages; and who exits and why. Audretsch concludes that the structure of industries is characterized by a high degree of fluidity and turbulence, even as the patterns of evolution vary considerably from industry to industry. The dynamic process by which firms and industries evolve over time is shaped by three fundamental factors: technology, scale economies, and demand. Most important, the evidence suggests that it is the differences in the knowledge conditions and technology underlying each specific industry -- key elements in innovation -- that are responsible for the pattern particular to that industry.
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