The implications of growing cross-border interdependence for systems of innovation

Abstract

Taking a multi-disciplinary approach, this paper highlights the importance of takinginto account the role of non-domestic elements in an innovation system, which is traditionallystudied by using the nation-state as the unit of analysis. Learning and knowledge accumulationis often assisted by inward and outward FDI, although this is sometimes overlooked in thestudy of innovation systems. Multi-level, multi-country interactions within a modernknowledge based economy means that firms are not always constrained by the limitations oftheir domestic resources. Nonetheless, there are factors that constrain and pre-determine theextent to which firms and locations can benefit from external knowledge sources, be theydomestic or foreign.economics of technology ;