Abstract:
Many economists refer to the concept “innovation system”, and even more generally to “national innovation systems”, but very few have attempted to explain the functioning of such a system. Therefore, the need arose to develop a model for an innovation system against which specific innovation systems could be compared and evaluated. Different models for an innovation system, as described in literature, were evaluated against findings of empirical studies in literature. Subsequently, a conceptual, descriptive framework for an innovation system model was developed. The participants that play a role in the innovation system were found to include, primarily, the innovative firms that are at the centre of the innovation system due to their importance in the contribution to innovative activities. Innovative firms were found to be operating in a complex matrix of other participants or actors. Other participants that were identified included suppliers and competitors, financial organisations and venture capitalists, customers, education and training bodies, government, science, technology and research and development (R&D) intermediaries, and international participants. It was further indicated that the strength of the linkages amongst participants has a positive effect on the innovative performance of the system and so is important for the transfer of finances, knowledge and technology. Although an ideal innovation system does not exist due to the complexity of the system, the conceptual model serves as a point of departure for the evaluation of innovation systems.
