Transformation of science and technology systems into systems of innovation in Central and Eastern Europe: the emerging patterns and determinants

This paper explores patterns of transformation of socialist Science and Technology (S&T) systems into post-socialist systems of innovation and their determinants. First, we reinterpret the socialist period from a system of innovation perspective by revisiting the socialist S&T system, and by pointing to its general features as well as to its national and sectoral variations. Second, we develop a conceptual model to help to understand the factors that are determining the emergence of systems of innovation. Systems of innovation in central and eastern Europe (CEE) are being shaped through the interaction of micro-specific, sectoral, national and regional determinants. At present, sectoral differences and micro-specific determinants seem to be the strongest in this process. The process of development and selection of network organisers is at the core of the emergence of systems of innovation in CEE. The most active network organisers are foreign firms. New production and innovation networks, especially in central Europe, are most often foreign-led

Rethinking the Dutch Innovation Agenda: Management and Organization Matter Most

In this essay, we challenge the present dominant emphasis in the Dutch Innovation Debate on the creation of technological innovations, the focus on a few core technologies, and the allocation of more financial resources. We argue that managerial capabilities and organizing principles for innovation should have a higher priority on the Dutch Innovation Agenda. Managerial capabilities for innovation deal with cognitive elements such as the capacity to absorb knowledge, create entrepreneurial mindsets, and facilitate managerial experimentation and higher-order learning abilities. These capacities can only be developed by distinctive managerial roles that enhance hierarchy, teaming and shared norms. Utilizing these unique managerial capabilities requires novel organizing principles, such as managing internal rates of change, nurturing self-organization and balancing high levels of exploration and exploitation. These managerial capabilities and organizing principles of innovation create new sources of productivity growth and competitive advantage.The dramatic fall back of the Netherlands in the league of innovative and high productivity countries of the World Economic Forum-Report can be mainly attributed to the present lack in the Netherlands of these key managerial and organizational enablers of innovation and productivity growth. We provide various levers for building unique managerial capabilities and novel organizing principles of innovation. Moreover, we describe the necessary roles that different actors have to play in this innovation arena. In particular, we focus on the often neglected but important role of strategic regulations that speed up innovation and productivity growth. They are the least expensive way to boost innovation in organizations in both the Dutch private and public sector. Finally, we discuss the implications for the Dutch Innovation Agenda. It should start with setting a challenging ambition, namely the return of The Netherlands within the WEF- league of the top-ten most innovative and productive countries of the world. Considering the under-utilization of available knowledge stemming from technological innovations, managerial and organizational determinants of innovation should receive first priority. These determinants have a high strategic relevance and should receive more public recognition. We suggest to organize an annual innovation ranking of the most outstanding Dutch firms, to develop an innovation audit that measures firms’ non-technological innovation capacity, and to create an overall innovation policy for fast diffusion of new managerial capabilities and adequate organizing principles throughout the Dutch private and public sector.In conclusion, we add five new items to the Dutch Innovation Agenda:1. Prioritize administrative innovationsInvestments in management and organization determinants of absorption of knowledge and its successful application (administrative innovation) should have a higher priority than investments in technological innovations.2. Build new managerial capabilities and develop novel organizing principlesFor these administrative innovations to succeed, firms have to build managerial capabilities (broad knowledge-base, absorptive capacity, managerial experimentation, higher-order learning) and various management roles (hierarchy, teaming, shared norms) to increase the assimilation of external knowledge and the utilization for innovation. Moreover, they have to develop novel organizing principles that increase internal rates of change, nurture self-organization and synchronize high levels of exploration and exploitation.3. Set levers of innovation by creating selection environments that favor innovation and by redefining the roles of key actors Management has to create a proper organizational context to foster entrepreneurship and innovation (internal selection environment). Governmental agencies have to focus on innovation and productivity enabling strategic regulations (external selection environment). Moreover, research institutes, business schools, and consulting firms should not only focus on technological knowledge, but also on managerial and organizational knowledge for innovation. In the end, private small and large firms and public institutions have to recognize that they all must contribute to the national goal of increasing innovation and productivity growth.4. Create a new challenging national ambition: return of the Netherlands within the top-10The Netherlands has to return to the top-ten most innovative and productive countries in the world as reflected in international rankings such as the World Economic Forum’s Global Competitiveness Index.5. Proliferate an awareness and passion for innovation:Create public awareness and recognition of the societal relevance of outstanding managerial capabilities and organizing principles to innovation and productivity growth:o Initiate a Dutch innovation ranking in terms of management and organization;o Develop proper assessment tools for innovations in management and organization;o Enhance reporting on the progress on managerial and organizational innovation as part of modern corporate governance and as part of outstanding annual reports.These issues may contribute to rethinking the fundamental sources of innovation, productivity growth and sustainable competitive advantage of the Dutch economy.dynamic capabilities;knowledge transfer;exploitation;exploration;mANAGEMENT;mindsets;organizing pinciples;srategic rgulation;strategy innovation

Learning from local economic development experiences: Observations on Integrated Development Programmes of the Free State, Republic of South Africa

The aim of this paper is to assess the degree to which the components of the Rural Economic and Enterprise Development (REED) framework have been incorporated into integrated development planning (IDP) or into strategic local economic development (LED) plans. The paper also provides an evaluation of two local municipal level IDPs in the Free State, Republic of South Africa. The evaluation is considered on an ex-ante basis in terms of contemporary LED and REED approaches. We also consider IDP efficacy and potential impact in terms of achieving enterprise development, poverty reduction and growth.Rural Economic and Enterprise Development, economic development,

Entrepreneurship by Alliance

Recent years have seen the introduction of markets and a system of private property rights in China with a view to changing the composition of production and demand and enhancing welfare. Central to the success of these reforms is the rise of entrepreneurship with its potential to set the economy on a higher growth path by supplying the products which consumers need and want, creating new employment opportunities, and introducing new and more efficient technologies of production. But to what extent can we expect to see entrepreneurs in China behaving like their counterparts in the advanced industrial economies of Western Europe, Japan, and the United States? This is the question we address in this chapter. In our view, the reform programme has, indeed, opened up new opportunities for private enterprise activity; but idiosyncrasies of the business environment are at the same time generating novel institutional arrangements in support of entrepreneurs' investments. We agree, therefore, with Herrick and Kindleberger when they assert that "Development ought not to be viewed as a monotonic, stylized path, ever onward and upward, historically established and invariably repeated" (1983, p.62).entrepreneurship;economic growth;economic development;business networking;Western economies

Writing new scripts: redefining managerial agency in Cuba

Transitional societies are faced with particularly challenging and pressing problems. These usually involve the passage from a centralised, socialist-based society, to a decentralised, market-based economy. This paper addresses a somewhat different case: that of Cuba. According to the official discourse, the island is not in a state of transition. On the contrary, it is assumed that the conquests of the revolution are there to stay. Nonetheless, significant changes are taking place. The market logic is being adopted in a growing number of cases, ranging from empresas mixtas to the weak signals of entrepreneurial activity. Drawing on a series of eight focus groups with a total of 106 Cuban executives and management scholars, this paper addresses the uniqueness of the Cuban case on the basis of the theory of structuration. The paper reports how the need to keep the faith is being added with the adoption of Western management practices, and how the interplay between planned and emergent change is sculpting transition through the redefinition of managerial scripts.Cuba, managerial scripts, agency, structuration theory, focus groups

Enlarging the scale of knowledge in innovation networks: theoretical perspectives and policy issues

Nowadays, it is widely accepted that knowledge and learning are the core of competitiveness, international division of labour and agglomeration and exclusion phenomena. Yet we are still in need of a better understanding of the processes which allow access by individual regions both to codified knowledge and RTD networks as well as tacit knowledge and know-how at the international/interregional level. This paper will discuss possible approaches to analyze the mechanisms which operate at the international/interregional level and lead to higher forms of integration of industrial and service firms, not only in a commercial or financial perspective but also in knowledge and innovation networks. It will point to a need to develop policy strategies in support of institutions that create and transfer knowledge on a European scale and outline open questions for the creation of the necessary institutional background for the creation and the support of knowledge and innovation networks at this level and for the conditions of its transferability to Objective 1 regions and the EU candidate countries.

R&D consortia as boundary organisations: Misalignment and asymmetry of boundary management

The paper presents a qualitative multiple case study of three multilateral public-private R&D consortia representing different industrial sectors. Using the practice-based view as a theoretical lens, we explore the interplay between the deliberate and emergent practices of boundary management across the following three dimensions: (1) Boundary bridging focus; (2) boundary crossing arrangements; and (3) collaborative governance arrangements. Drawing on interviews, documentary analysis and observational data, we describe the misalignment between the deliberate and emergent aspects of boundary management, which can be caused by the funders' reporting requirements, power differentials between collaborators and lack of contextual understanding. These factors, accompanied by path-dependency and confidentiality issues, may result in asymmetrical boundary management, whereby a selective focus on a specific boundary (or set of boundaries) combined with an unequal development of boundary bridges within the collaboration may lead to the crossing of some boundaries being prioritised at the expense of others

The Role of Collaborative Networks in Sustainability

http://www.springerlink.com/content/978-3-642-15960-2#section=791431&page=1International audienc

Externalities, Learning and Governance: New Perspectives on Local Economic Development

In spite of growing mobility of production and production factors, economic development is increasingly localized in economic agglomerations. This article reviews three partially overlapping perspectives on local economic development, which derive from three factors intensifying the localized nature of economic development: externalities, learning and governance. Externalities play a central role in the new geographical economics of Krugman and in new economic geography of clusters and industrial districts. The dynamics of local economic development are increasingly associated with evolutionary economic thinking in general and with collective learning in particular. Inter-firm and extra-firm organization has experienced considerable innovation in the last few decades. New institutional devices are based on the notions of commodity chain, cluster and milieu. These innovations introduce new issues of economic governance both at the level of industry and of territory