Impact of the National Innovation System on Innovation

Abstract

Purpose. Aim of this research is, firstly – to outline the theoretical aspects connected with the impact of the national innovation system (NIS) on innovation. Secondly – to create and test the methodology for the analysis of the impact of the NIS on innovation for detecting the main innovation barriers. Thirdly – to elaborate recommendations for the companies and the government to promote the implementation of innovation in Latvia by improving the NIS.

Methodology. The research is organized in three sections. Introduction has explained the background and necessity of this research. The three sections include short overview of the main concepts and problematic issues connected with the key concepts of this research, description of the methodology and analysis of the impact of the NIS on innovation and recommendations for the promotion of innovation in Latvia improving the NIS.
Proposed methodology of analysis is based on the analysis of literature carried out by the author of this research. It is tested on the analysis of impact of Latvia’s innovation system on innovation and includes interviews with experts of NIS and survey of innovative companies.

Findings. After analysis of the NIS of Latvia there were identified innovation barriers referring to the NIS in general as well as to the separate functions of the NIS. The research identified the following three broad issues: 1) the main function that initiates the development of knowledge and innovation (influence of the direction of the search) is not being implemented; 2) lack of cooperation between NIS participants; 3) inefficient and fragmented management of the NIS. The main innovation barriers are: lack of financial resources, lack of qualified personnel and the lack of appropriate support services.

Originality. Proposed methodology of analysis may be used by scholars as well as policy makers to assess the impact of the NIS on innovation and to determine the main innovation barriers, to investigate the mismatch between policies and problems, identify policy gaps and devise better policies for the promotion of innovation.
This research can be used by owners/managers of companies in the making of decisions connected with the innovation process.

Category of paper: research paper.