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Systems of Innovation and Underdevelopment: An Institutional Perspective

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  • Oyelaran-Oyeyinka, Banji

    () (United Nations University, Institute for New Technologies)

Abstract

This paper examines institutions and their role in supporting technical change as part of the development process, and asks how institutions shape the system of innovation (SI). The context of underdevelopment exhibits distinct system characteristics that differ markedly from those found under advanced economic conditions and as such deserves close empirical scrutiny. SIs differ significantly under the two sets of conditions, leading to uneven structural changes. The paper therefore explores what functions must be served by systems in developing countries in order to generate technical dynamism. To compare different contexts, it introduces the idea of a System of Learning Innovation in Development (SLID) that emphasizes individual and organizational competence building. The differences between “Advanced” Systems of Innovation (ASI) and two types of SLID are discussed. Infrastructure, one of the key components of institutions involved in development, is used as an illustration. The study found that dynamic SIs function best in a regime of high-quality infrastructure (telephone, Internet, computers and reliable electricity supplies). The case of sub-Saharan Africa serves to illustrate the point.

Suggested Citation

  • Oyelaran-Oyeyinka, Banji, 2005. "Systems of Innovation and Underdevelopment: An Institutional Perspective," UNU-INTECH Discussion Paper Series 01, United Nations University - INTECH.
  • Handle: RePEc:unm:unuint:200501
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    File URL: http://www.intech.unu.edu/publications/discussion-papers/2005-1.pdf
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    Cited by:

    1. Lundvall , Bengt-Åke & Vang , Jan & Joseph , KJ & Chaminade , Cristina, 2013. "Bridging Innovation System Research and Development Studies: challenges and research opportunities," Papers in Innovation Studies 2013/33, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    2. Verónica Baz & Maria Cristina Capelo & Rodrigo Centeno & Ricardo Estrada, 2010. "Productive Development Policies in Latin America and the Caribbean: The Case of Mexico," IDB Publications (Working Papers) 3968, Inter-American Development Bank.
    3. Egbetokun A. & Oluwatope O. & Adeyeye D. & Sanni M., 2014. "The role of industry and economic context in open innovation: Evidence from Nigeria," MERIT Working Papers 073, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Oluseye Oladayo Jegede & Matthew O. Ilori & Martins Olusola Olorunfemi & Billy A. Oluwale, 2016. "On the link between human capital, innovation and performance: evidence from a resource-based economy," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 13(1), pages 27-49.
    5. Hall, Andy & Sulaiman, Rasheed & Bezkorowajnyj, Peter, 2008. "Reframing technical change: Livestock Fodder Scarcity Revisited as Innovation Capacity Scarcity: Part 2. A Framework for Analysis," MERIT Working Papers 003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    Keywords

    Innovation; Innovation Policy; Capacity Building; Learning; Economic Development; Infrastructure; Sub-Saharan Africa;

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