Innovation Policy and Development in the ICT Paradigm: Regional and Theoretical Perspectives

Innovation policy forms a foundation, and probably the most important one, of economic development in any society, especially in today’s society driven by information and communication technologies (ICT). The Schumpeterian processes of creative destruction need stewardship – creative destruction management – and this paper aims to explore some key aspects of innovation policies from the perspective of the current ICT paradigm. The basic feature of the latter is the trend towards globalisation, towards facilitation of heterogeneity, diversity, and adaptability, which leads to market segmentation and niche proliferation as well as to production disaggregation and segment relocation. Analysis of innovation policies of the Central and Eastern European (CEE) countries shows that their current national innovation system based innovation policies are lacking several crucial features. First, one of the central arguments of creative-destruction management is paradigm-based, activity-specific priority-setting, but such wide-scale selection mechanisms have been and are still missing, and currently innovation policies by themselves can not lead to economic restructuring. Second, the whole concept of innovation systems has to a large extent focused on activities related to the production and use of codified scientific and technical knowledge leading to the situation where existing policies have essentially nothing to do with the average companies. Third, the current paradigm is characterised by globalised and open financial markets which, in case of the CEE countries, have enforced speculative economic growth, fuelled by domestic consumption and based on foreign borrowing. Finally, while the state is generally considered an important factor influencing how concrete innovation systems develop, linkages to policymaking itself and administrative capacities are quite missing and need to be revived, including the reconsideration of governance.innovation, economic development, innovation policy, ICT Paradigm, open innovation, governance, dissertations,

Nordic small countries in the global high-tech value chains: the case of telecommunications systems production in Estonia

In this paper we focus on the electronics industry, and more specifically on the production of telecommunications systems, which is characterised both by very rapid growth of the global trade and very high ratio of R&D investments in the sales revenues (Moncada-Paternoo-Castello et al 2010). More specifically, we analyse the distinctly different development paths of the three major telecommunications systems producers in the Nordic countries: Ericsson, Elcoteq and Skype. Ericsson was established in 1876, and has been a well-known brand name for decades. By contrast, Elcoteq grew from a small company into a global multinational corporation in less than a decade only in the 1990s. As a global company, Skype is still less than ten years old, but it facilitates today more international calls than any other telecommunications operator on the planet.

Digital Divide in Estonia and How To Bridge It

Estonia is one of the most rapidly developing information societies in Central and Eastern Europe. Still, 61% of the Estonian adult population does not use the Internet. The analysis, carried out by the research company Emor and PRAXIS Center for Policy Studies, looked thoroughly at the reasons and motivation for not using the Internet of this particular population group. The research did not address the issue of the digital divide between countries. The research clearly shows that one third of the current non-users understand the opportunities offered by the Internet and want to take advantage of them, but are limited by a lack of skills and access. Two- thirds of the non-users (40% of the adult population) do not consciously think of the Internet as of an interesting and useful tool; more practical services and an awareness campaign are thus needed for them. The latter group depends on daily routine and already shaped-out habits – it is hard for them to accept the Internet as a new channel of information and management of public affairs. The research draws several interesting conclusions. Among them is that people believe that an Internet bank as a fully developed web-service is a trustworthy partner for managing one’s business independently. At the same time, regarding public sector e-services, people are certain that much depends on the discretion of the public servant and that therefore electronic services do not suffice. Hence, if the public sector were able to offer its services fully on the web like Internet banks, its reliability will increase and negative opinions decline. The fact that “light-users” of the Internet do not consider security on the net a problem is an acknowledgement of the successful efforts by service providers so far. Medical services were pointed out most often by the present non-users as having the potential to motivate them to start using the Internet. PRAXIS and Emor also compiled policy recommendations based on the research results, which are all listed in the final report. The research was carried out by Emor and PRAXIS Center for Policy Studies from January to July 2002. The research was commissioned and financed by the Open Estonia Foundation, the Look@World Foundation and the State Chancellery of the Republic of Estonia. It was co-financed by the International Bank for Reconstruction and Development (IBRD) and the Open Society Institute in Budapest (OSI - Budapest).Internet, Information Technology, Digital Divide, Transition country, Rural development, Telecommunication, Estonia

The Estonian ICT Manufacturing and Software Industry: Current State and Future Outlook

This report forms part of the larger study initiated by IPTS on the socio-economic impact of ICTs in the acceding and candidate countries. It aims to describe the ICT manufacturing and software industry in Estonia and also throw light on how this industry will be affected by EU enlargement and how far it will contribute to the achievement of the Lisbon objectives. As well as providing an up-to-date overview of the current situation, including information on the largest ICT manufacturing and software companies, the report also debates possible future scenarios for the Estonian ICT manufacturing and software industry with a closer look at the challenges for the Estonian ICT sector innovation system.ICT, software, manufacturing industry, innovation, Estonia

The Development of eServices in an Enlarged EU: eGovernment and eHealth in Estonia

In 2005, IPTS launched a project which aimed to assess the developments in eGoverment, eHealth and eLearning in the 10 New Member States at national, and at cross-country level. At that time, the 10 New Member States were Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, and Slovakia. A report for each country was produced, describing its government and health systems and the role played by eGovernment and eHealth within these systems. Each report then analyzes, on the basis of desk research and expert interviews, the major achievements, shortcomings, drivers and barriers in the development of eGovernment and eHealth in one of the countries in question. This analysis provides the basis for the identification and discussion of national policy options to address the major challenges and to suggest R&D issues relevant to the needs of each country ¿ in this case, Estonia. In addition to national monographs, the project has delivered a synthesis report, which offers an integrated view of the developments of each application domain in the New Member States. Furthermore, a prospective report looking across and beyond the development of the eGoverment, eHealth and eLearning areas has been developed to summarize policy challenges and options for the development of eServices and the Information Society towards the goals of Lisbon and i2010.JRC.J.4-Information Societ

Innovation Policy and Development in the ICT Paradigm: Regional and Theoretical Perspectives

Innovation policy forms a foundation, and probably the most important one, of economic development in any society, especially in today’s society driven by information and communication technologies (ICT). The Schumpeterian processes of creative destruction need stewardship – creative destruction management – and this paper aims to explore some key aspects of innovation policies from the perspective of the current ICT paradigm. The basic feature of the latter is the trend towards globalisation, towards facilitation of heterogeneity, diversity, and adaptability, which leads to market segmentation and niche proliferation as well as to production disaggregation and segment relocation. Analysis of innovation policies of the Central and Eastern European (CEE) countries shows that their current national innovation system based innovation policies are lacking several crucial features. First, one of the central arguments of creative-destruction management is paradigm-based, activity-specific priority-setting, but such wide-scale selection mechanisms have been and are still missing, and currently innovation policies by themselves can not lead to economic restructuring. Second, the whole concept of innovation systems has to a large extent focused on activities related to the production and use of codified scientific and technical knowledge leading to the situation where existing policies have essentially nothing to do with the average companies. Third, the current paradigm is characterised by globalised and open financial markets which, in case of the CEE countries, have enforced speculative economic growth, fuelled by domestic consumption and based on foreign borrowing. Finally, while the state is generally considered an important factor influencing how concrete innovation systems develop, linkages to policymaking itself and administrative capacities are quite missing and need to be revived, including the reconsideration of governance