The characteristics of the formation of national innovative systems at the modern stage

Tea Lazarashvili

Journal number 4 ∘ Tea Lazarashvili ∘
The characteristics of the formation of national innovative systems at the modern stage

Summary

The article discusses the formation of the national innovative systems and factors influencing them. Are highlighted those signs of general national systems characteristic to them as interactive blocks. In particular creative block, technology transfer block, production block and staff training block.

Analysis of the national innovation systems in the world has shown that 5 basic types of national innovation systems are explicit. These are: euroatlantic, easterasian, three-dimensional spiral and four-dimensional spiral model.

Each system is characterized by their peculiarities and accordingly the countries where these systems are used.

Keywords: National Innovation System, Atlantic, Oriental, Triple Spiral.

Introduction

At the beginning of the XXI century the change of the main factor of economic development started, which laid the basis for the formation of a new type of economy, where the knowledge factor plays a decisive role, while knowledge production is the source of economic growth. In this case new forms of scientific knowledge, new technologies, innovative processes, goods and services systems and business organizations are dominant of economic growth. Innovations will turn into a strategic form of economic growth, affect the structure of public production, change the face of the economic organization of society and eventually promote stabilization of the social situation in the country. The formation of national innovative systems is in progress in relatively developed countries. Formation of different types and models of national innovation systems depends on the country's national peculiarities and economic potential.

Common signs of national innovation systems

While national innovation systems differ significantly from each other, they have common signs, which include a combination of interactive blocks. These blocks are: creative block, technology transfer block, production block and staff training block.

The creative block is often called the Knowledge Block, which includes universities, scientific institutes, social networks, which provide informal interaction of researchers from different institutions and universities.

Various mediators are integrated into the technology transfer block. Nonprofit organizations of professional experts who form a special environment with wide network connections and provide authors' contacts with potential buyers.

The financing block includes sources of funding needed for the transformation of the idea into the experimental sample and then for its mass production. The three sources of external financing are known: bank credit, selling of innovations and venture financing.

There are two alternative options for the innovative production organization in the production block: 1. Such a production can be involved in manufacturing structure of any major firm and accordingly the advantage of vertical integration, which reduces transaction costs. 2. Creating a new enterprise where the production transaction costs are minimized at the expense of small size.

The staff training block is focused on formation of scientific personnel.

The opinion of both domestic and foreign researchers is unmatched in relation to the blocks of national innovations. Some believe that the main elements of the national innovation system can be combined in 6 major blocks, while others − in 10. No matter how many elements national innovation systems contain, they generate knowledge and prepare innovative staff; Create innovative infrastructure, produce innovative products and carry out state policy. The interaction between the blocks is carried out according to the following schemes: "state-science", "science-production", "state-production". According to this scheme, the role of the private sector is based on its own research and development of technologies and innovations. The main role of the state is to promote production in the complex of the fundamental knowledge and strategic technologies and to create infrastructure and positive institutional conditions for innovative activity. Various options for realizing this conditional model are forming national innovation systems.

National Innovation System Models

Analysis of the national innovation systems in the world has shown that 4 main types of national innovation systems are classified. These are: Euro-Atlantic, Eastern-Asian style, alternative and triple spiral.

The Euro-Atlantic model is a complete innovative cycle model, which includes all the stages from the emergence of innovative ideas to mass production of finished products. In the countries where this model is used, all components of the innovation system are presented: fundamental and applied sciences, research and development, creation of experimental samples and their putting in mass production. As a rule, the model is used by developed countries that are leading the world competitiveness of national economies. These countries are: Great Britain, Germany, France and others.

The Eastern Asian model is distinguished by the fact that there is no stage for the formation of a fundamental idea in its innovation cycle. Innovative systems based on this model have virtually no components of fundamental science. This model is used by the countries of the East Asia region. These include: Japan, South Korea, Hong Kong, Taiwan and others. East Asian countries, which are oriented on high-tech products, are borrowing technologies from "traditional" model countries. Japan's innovative system is considered a classic example of the innovative development of this model.

An alternative model of innovative development is predominantly used in agricultural countries, which lack significant resources in the field of fundamental and applied science, as well as rich processing technologies, etc. In such an innovation system not only a block of fundamental and applied science is represented weaklog, but a high-tech component too. Countries that do not have the opportunity to develop new technologies, in innovative policies they focuse on training, on the fields of economics, finances, management, labor, sociology and psychology, as well as on development of light industry, creative industry and recreational sectors. Major attention is paid to the management for the representatives of transnational corporations, local banks and international political structures. An East Asian model of innovative development is used in Thailand, Chile, Turkey, Portugal and others.

As for the "triple-spiral" model, which has developed in the US in the last decade, is fundamentally different from the above models not only with the structure of the national innovative system, but also by the mechanism of interaction with its individual elements. The process of forming individual elements of this model has been observed in some of Western Europe Countries and Japan.

Let's briefly consider each of them.

The Euro-Atlantic model of the national innovation system is widely developed in Western European countries, with many years of scientific traditions and experience. After World War II, these countries gradually changed the priorities of the research and emphasized the relatively cheap means of receiving scientific and technical information. For example, in the late 1940s, Great Britain refused long-term research in nuclear physics and emphasized the study of the biological properties of radio astronomy and high-molecular substances. Great Britain has achieved great success and laid the basis for two fundamental scientific disciplines: astrophysics and molecular biology. Today, the British Innovation System is concentrated around the world class universities such as Oxford, Cambridge, University of London and others. The development of Great Britain's innovation system has occurred due to the development of the board of innovative technologies strategy and innovation strategy of long-term development in the early 2000s. The Technological Strategy Board is implementing investments in new technologies and supports their development and commercialization. In addition, two types of innovative centers are created in the country. The first type is designed to develop specific technologies and promote their use in terms of business needs and capabilities. The second type of innovative centers are focused on for a certain sectors of economy or market the unification of science and technology.

In Italy and Germany, national innovation systems are concentrated around large universities.

As for the small European countries, national innovation systems are focused on the development of fundamental science in universities that are funded by the state. These countries are: Sweden, Netherlands, Denmark, Switzerland, Finland. They have an important place in innovative systems in the National Academy of Sciences. In some of them there are institutions of higher studies that provide highly skilled staff in the field of fundamental science. Applied research in small European countries is mainly funded by a grant project with large transnational corporations within the joint project. In addition, small and medium businesses are actively involved in financing such studies. Any country has national characteristics to build national innovation systems. For instance, in addition to universities in Denmark, a significant part of the innovative system is sectoral scientific-research institutes attached to various ministries and scientific researches in accordance with the requirements of the relevant ministry. There is a system of institutes that are independent consulting companies that develop and sell their knowledge and technological services to private enterprises and state institutions. These institutions are non-profit organizations created by the Ministries of Science, Technology and Innovation and are engaged in the following main directions: independently development of Know-how; Participation in joint projects and commercial activities together with state scientific-research institutions and private companies,.

In the Western European countries the processes of unification of national innovations are underway in united scientific-technical and innovative space. For this purpose special mechanisms have been developed that promote the implementation of the new innovative strategy of the European Union. Unified European Innovative Space is a complex interdependence between the level of formation, the constituent elements and instruments. The national innovation system is constantly changing, new forms of cooperation emerge. Transnational cooperation strengthens and expands the united European innovation system.

The East Asian region has developed an eastward model of the national innovative system that differs first from other models with its structure which is expressed in the fact that universities here as a fundamental development center play a much smaller role than research laboratories of corporations. The typical example of this is Japan, where innovation system is focused primarily on technical innovations and the latest technologies and not on fundamental knowledge.

The Japanese National Innovation System was gradually emerging, and it consisted mainly of 3 stages. The first phase − the 50-80s of the 20th century, the second stage −from the 80s to the year 2000 and the third stage - from the beginning of the XXI century. Each phase is distinguished by the peculiarities that were caused by the policy conducted in scientific, technical, educational and social spheres.

The formation of the Japanese National Innovation System is mainly based on national fundamental research by leading overseas technologies and know-how, based on their original designs and scientific-technical achievements.

It is noteworthy that most of the fundamental studies are taking place in universities and state laboratories in Japan. The main part of expenditure on scientific research and experimental projects is of the private sector in Japan, which contributed to the success of this country in the areas of technical progress related to the production of consumer goods.

In countries with no significant scientific potential, where there is no fundamental and applied science block, an alternative model of innovative development is formed. Examples of this model are the National Innovation System: Thailand, Chile, Turkey, Portugal and others. When forming a national innovation system Thailand and Chile prefer to develop innovative management of agriculture and to berrow new technologies and develop them. Innovative infrastructure is gradually developing, which includes the strategy elaboration of innovative development and the competitiveness of national economy. It is noteworthy that fundamental science in these countries is predominantly in universities. Leading national universities enjoy government support. It is an alternative model for the development of national innovative development that does not include the creation of a complete production cycle of fundamental science and high technologies that are very beneficial for those countries who do not have a strong financial and organizational expenditure.

The third model, known as the Triple Spiral Model, is the latest model of the formation of the National Innovative System, which has developed on the basis of the Euro-Atlantic model, but has not yet completed its form in any country. Most of it is developed in the US. At the beginning of the XXI century, the triple spiral theory laid the foundation for a triple-shaped model. The use of three-dimensional spiral model for innovative development implies the interaction of three institutions (science-state-business) and the creation of an innovative product at each stage. It is a dynamic model of interorganizational interactions between the economy and the evolution of the society. Previously, it the interaction between these three institutions in the industrial era was linear, in this model are already created spiral structures that enable institutions to change and maintain some of the characteristics of each other. Its main elements are: 1. The community based on scientific knowledge is characterized by the strengthening of the role of universities in interaction with industry and government; 2. The three institutions - the university, the state and the business are working to cooperate, while the innovative constituents are generated from this interaction rather than the state initiative; 3. In addition to traditional functions, each of these three institutions is partially taking over the functions of other institutional spheres, and the realization of non-traditional functions is an innovative source. In practice it is implemented as follows: Universities who are engaged in education and scientific research, through the creation of new companies in the incubators of the university, have contributed to the development of the economy. Business is partially engaged in educative services, and the state, besides its traditional legislative and regulatory role is a public entrepreneur and venture investor. The leading role in this model is given to universities that transform into entrepreneurial universities or industrial types of universities, use knowledge in practice and result in new educational disciplines.

It is noteworthy that the complicated type of the three-dimensional spiral − the fourth-spiral model is worked out that deals with interactive network relations at the national level. Because other institutes have also started to influence innovative processes in the form of different social layers, this circumstance has raised the issue of adding a fourth element to the triple spiral. Is considered that the fourth sphere characterizes better the modern postindustrial economy than the triple, caused by the acquisition of a vital role for civil society in the XXI century, in the creation and development of new well-being and values.

Conclusion

The overseas experience of the formation of different types of national innovations suggests that in most countries today, they are looking forward to innovative development and are thus choosing a model of a national innovation system that is most relevant and capable of their economy. In addition, the selection of a specific model should be determined by the level of education and science of the country's economic development.

Establishment and development of a national innovation system is a long process for the economy of any country where business, state and science are very closely interconnected and in addition to their traditional functions, they acquire non-traditional functions and perform them. However, it should be noted that the rapid success of the countries that have great scientific and educational potential will enable them to quickly develop and implement innovative products in the industry. In order to do all this, there is a need for harmonious relationships between science and business, which is impossible without the active protectionist policies of the state.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 4 ∘ Tea Lazarashvili ∘ The characteristics of the formation of national innovative systems at the modern stage Summary The article discusses the formation of the national innovative systems and factors influencing them. Are highlighted those signs of general national systems characteristic to them as interactive blocks. In particular creative block, technology transfer block, production block and staff training block. Analysis of the national innovation systems in the world has shown that 5 basic types of national innovation systems are explicit. These are: euroatlantic, easterasian, three-dimensional spiral and four-dimensional spiral model. Each system is characterized by their peculiarities and accordingly the countries where these systems are used. Keywords: National Innovation System, Atlantic, Oriental, Triple Spiral. Introduction At the beginning of the XXI century the change of the main factor of economic development started, which laid the basis for the formation of a new type of economy, where the knowledge factor plays a decisive role, while knowledge production is the source of economic growth. In this case new forms of scientific knowledge, new technologies, innovative processes, goods and services systems and business organizations are dominant of economic growth. Innovations will turn into a strategic form of economic growth, affect the structure of public production, change the face of the economic organization of society and eventually promote stabilization of the social situation in the country. The formation of national innovative systems is in progress in relatively developed countries. Formation of different types and models of national innovation systems depends on the country's national peculiarities and economic potential. Common signs of national innovation systems While national innovation systems differ significantly from each other, they have common signs, which include a combination of interactive blocks. These blocks are: creative block, technology transfer block, production block and staff training block. The creative block is often called the Knowledge Block, which includes universities, scientific institutes, social networks, which provide informal interaction of researchers from different institutions and universities. Various mediators are integrated into the technology transfer block. Nonprofit organizations of professional experts who form a special environment with wide network connections and provide authors' contacts with potential buyers. The financing block includes sources of funding needed for the transformation of the idea into the experimental sample and then for its mass production. The three sources of external financing are known: bank credit, selling of innovations and venture financing. There are two alternative options for the innovative production organization in the production block: 1. Such a production can be involved in manufacturing structure of any major firm and accordingly the advantage of vertical integration, which reduces transaction costs. 2. Creating a new enterprise where the production transaction costs are minimized at the expense of small size. The staff training block is focused on formation of scientific personnel. The opinion of both domestic and foreign researchers is unmatched in relation to the blocks of national innovations. Some believe that the main elements of the national innovation system can be combined in 6 major blocks, while others − in 10. No matter how many elements national innovation systems contain, they generate knowledge and prepare innovative staff; Create innovative infrastructure, produce innovative products and carry out state policy. The interaction between the blocks is carried out according to the following schemes: "state-science", "science-production", "state-production". According to this scheme, the role of the private sector is based on its own research and development of technologies and innovations. The main role of the state is to promote production in the complex of the fundamental knowledge and strategic technologies and to create infrastructure and positive institutional conditions for innovative activity. Various options for realizing this conditional model are forming national innovation systems. National Innovation System Models Analysis of the national innovation systems in the world has shown that 4 main types of national innovation systems are classified. These are: Euro-Atlantic, Eastern-Asian style, alternative and triple spiral. The Euro-Atlantic model is a complete innovative cycle model, which includes all the stages from the emergence of innovative ideas to mass production of finished products. In the countries where this model is used, all components of the innovation system are presented: fundamental and applied sciences, research and development, creation of experimental samples and their putting in mass production. As a rule, the model is used by developed countries that are leading the world competitiveness of national economies. These countries are: Great Britain, Germany, France and others. The Eastern Asian model is distinguished by the fact that there is no stage for the formation of a fundamental idea in its innovation cycle. Innovative systems based on this model have virtually no components of fundamental science. This model is used by the countries of the East Asia region. These include: Japan, South Korea, Hong Kong, Taiwan and others. East Asian countries, which are oriented on high-tech products, are borrowing technologies from "traditional" model countries. Japan's innovative system is considered a classic example of the innovative development of this model. An alternative model of innovative development is predominantly used in agricultural countries, which lack significant resources in the field of fundamental and applied science, as well as rich processing technologies, etc. In such an innovation system not only a block of fundamental and applied science is represented weaklog, but a high-tech component too. Countries that do not have the opportunity to develop new technologies, in innovative policies they focuse on training, on the fields of economics, finances, management, labor, sociology and psychology, as well as on development of light industry, creative industry and recreational sectors. Major attention is paid to the management for the representatives of transnational corporations, local banks and international political structures. An East Asian model of innovative development is used in Thailand, Chile, Turkey, Portugal and others. As for the "triple-spiral" model, which has developed in the US in the last decade, is fundamentally different from the above models not only with the structure of the national innovative system, but also by the mechanism of interaction with its individual elements. The process of forming individual elements of this model has been observed in some of Western Europe Countries and Japan. Let's briefly consider each of them. The Euro-Atlantic model of the national innovation system is widely developed in Western European countries, with many years of scientific traditions and experience. After World War II, these countries gradually changed the priorities of the research and emphasized the relatively cheap means of receiving scientific and technical information. For example, in the late 1940s, Great Britain refused long-term research in nuclear physics and emphasized the study of the biological properties of radio astronomy and high-molecular substances. Great Britain has achieved great success and laid the basis for two fundamental scientific disciplines: astrophysics and molecular biology. Today, the British Innovation System is concentrated around the world class universities such as Oxford, Cambridge, University of London and others. The development of Great Britain's innovation system has occurred due to the development of the board of innovative technologies strategy and innovation strategy of long-term development in the early 2000s. The Technological Strategy Board is implementing investments in new technologies and supports their development and commercialization. In addition, two types of innovative centers are created in the country. The first type is designed to develop specific technologies and promote their use in terms of business needs and capabilities. The second type of innovative centers are focused on for a certain sectors of economy or market the unification of science and technology. In Italy and Germany, national innovation systems are concentrated around large universities. As for the small European countries, national innovation systems are focused on the development of fundamental science in universities that are funded by the state. These countries are: Sweden, Netherlands, Denmark, Switzerland, Finland. They have an important place in innovative systems in the National Academy of Sciences. In some of them there are institutions of higher studies that provide highly skilled staff in the field of fundamental science. Applied research in small European countries is mainly funded by a grant project with large transnational corporations within the joint project. In addition, small and medium businesses are actively involved in financing such studies. Any country has national characteristics to build national innovation systems. For instance, in addition to universities in Denmark, a significant part of the innovative system is sectoral scientific-research institutes attached to various ministries and scientific researches in accordance with the requirements of the relevant ministry. There is a system of institutes that are independent consulting companies that develop and sell their knowledge and technological services to private enterprises and state institutions. These institutions are non-profit organizations created by the Ministries of Science, Technology and Innovation and are engaged in the following main directions: independently development of Know-how; Participation in joint projects and commercial activities together with state scientific-research institutions and private companies,. In the Western European countries the processes of unification of national innovations are underway in united scientific-technical and innovative space. For this purpose special mechanisms have been developed that promote the implementation of the new innovative strategy of the European Union. Unified European Innovative Space is a complex interdependence between the level of formation, the constituent elements and instruments. The national innovation system is constantly changing, new forms of cooperation emerge. Transnational cooperation strengthens and expands the united European innovation system. The East Asian region has developed an eastward model of the national innovative system that differs first from other models with its structure which is expressed in the fact that universities here as a fundamental development center play a much smaller role than research laboratories of corporations. The typical example of this is Japan, where innovation system is focused primarily on technical innovations and the latest technologies and not on fundamental knowledge. The Japanese National Innovation System was gradually emerging, and it consisted mainly of 3 stages. The first phase − the 50-80s of the 20th century, the second stage −from the 80s to the year 2000 and the third stage - from the beginning of the XXI century. Each phase is distinguished by the peculiarities that were caused by the policy conducted in scientific, technical, educational and social spheres. The formation of the Japanese National Innovation System is mainly based on national fundamental research by leading overseas technologies and know-how, based on their original designs and scientific-technical achievements. It is noteworthy that most of the fundamental studies are taking place in universities and state laboratories in Japan. The main part of expenditure on scientific research and experimental projects is of the private sector in Japan, which contributed to the success of this country in the areas of technical progress related to the production of consumer goods. In countries with no significant scientific potential, where there is no fundamental and applied science block, an alternative model of innovative development is formed. Examples of this model are the National Innovation System: Thailand, Chile, Turkey, Portugal and others. When forming a national innovation system Thailand and Chile prefer to develop innovative management of agriculture and to berrow new technologies and develop them. Innovative infrastructure is gradually developing, which includes the strategy elaboration of innovative development and the competitiveness of national economy. It is noteworthy that fundamental science in these countries is predominantly in universities. Leading national universities enjoy government support. It is an alternative model for the development of national innovative development that does not include the creation of a complete production cycle of fundamental science and high technologies that are very beneficial for those countries who do not have a strong financial and organizational expenditure. The third model, known as the Triple Spiral Model, is the latest model of the formation of the National Innovative System, which has developed on the basis of the Euro-Atlantic model, but has not yet completed its form in any country. Most of it is developed in the US. At the beginning of the XXI century, the triple spiral theory laid the foundation for a triple-shaped model. The use of three-dimensional spiral model for innovative development implies the interaction of three institutions (science-state-business) and the creation of an innovative product at each stage. It is a dynamic model of interorganizational interactions between the economy and the evolution of the society. Previously, it the interaction between these three institutions in the industrial era was linear, in this model are already created spiral structures that enable institutions to change and maintain some of the characteristics of each other. Its main elements are: 1. The community based on scientific knowledge is characterized by the strengthening of the role of universities in interaction with industry and government; 2. The three institutions - the university, the state and the business are working to cooperate, while the innovative constituents are generated from this interaction rather than the state initiative; 3. In addition to traditional functions, each of these three institutions is partially taking over the functions of other institutional spheres, and the realization of non-traditional functions is an innovative source. In practice it is implemented as follows: Universities who are engaged in education and scientific research, through the creation of new companies in the incubators of the university, have contributed to the development of the economy. Business is partially engaged in educative services, and the state, besides its traditional legislative and regulatory role is a public entrepreneur and venture investor. The leading role in this model is given to universities that transform into entrepreneurial universities or industrial types of universities, use knowledge in practice and result in new educational disciplines. It is noteworthy that the complicated type of the three-dimensional spiral − the fourth-spiral model is worked out that deals with interactive network relations at the national level. Because other institutes have also started to influence innovative processes in the form of different social layers, this circumstance has raised the issue of adding a fourth element to the triple spiral. Is considered that the fourth sphere characterizes better the modern postindustrial economy than the triple, caused by the acquisition of a vital role for civil society in the XXI century, in the creation and development of new well-being and values. Conclusion The overseas experience of the formation of different types of national innovations suggests that in most countries today, they are looking forward to innovative development and are thus choosing a model of a national innovation system that is most relevant and capable of their economy. In addition, the selection of a specific model should be determined by the level of education and science of the country's economic development. Establishment and development of a national innovation system is a long process for the economy of any country where business, state and science are very closely interconnected and in addition to their traditional functions, they acquire non-traditional functions and perform them. However, it should be noted that the rapid success of the countries that have great scientific and educational potential will enable them to quickly develop and implement innovative products in the industry. In order to do all this, there is a need for harmonious relationships between science and business, which is impossible without the active protectionist policies of the state.