Measuring the functionality of National Innovation System

Abstract

Purpose Aim of this research is, firstly – to define and analyze the most important processes that need to take place in the innovation system to lead successfully to innovation. Secondly – to create a framework for analysis of functionality of national innovation system (NIS), for detecting system failures that an innovation policy should approach to foster innovative entrepreneurship.

Methodology The research is organized in three sections. Introduction has explained the background and necessity of this research. The three sections include description of the development of NIS approach, description of functions and methods of analysis of NIS and description of proposed framework of analysis. The last section contains main conclusions.

Proposed framework of analysis of NIS is based on the analysis of literature carried out by author of this research. It is tested on the analysis of Latvia’s innovation system and includes interviews with experts of NIS and survey of innovative companies.

Findings Developed framework includes combined use of functions approach and system failures approach. It focuses on the most important processes that need to take place in innovation system to lead successfully to innovation, to capabilities of actors to fulfill these functions and to interaction between them.

Originality There is a lack of academic research in the field of scientific and innovative activities that analysis causality and interaction between knowledge creation and commercialization and focus on the whole innovation process in the Latvia’s NIS.

Proposed scheme of analysis may be used by scholars as well as policy makers to measure the functionality of the NIS, to investigate the mismatch between policies and problems, identify policy gaps and devise better policies addressing failures in their NIS with the aim to foster innovative entrepreneurship.
Category of paper: research paper.