IDEAS home Printed from https://ideas.repec.org/p/lev/wrkpap/wp_823.html
   My bibliography  Save this paper

The State and National Systems of Innovation: A Sympathetic Critique

Author

Listed:
  • Giovanna Vertova

Abstract

This paper starts with a review of the literature about National Systems of Innovation (NSI), by linking the origin of the concept to the evolutionary theory of the firm and innovation. The first point reviews the flaws of the NSI concept by looking at the pioneering works of Chris Freeman, Bent-Ake Lundvall, and Richard Nelson. These authors' definitions of NSI contain some striking aspects: (1) the definitions are so broad that they can encompass almost everything; (2) although all definitions share the central role played by institutions, the state and its policy are not explicitly mentioned; and (3) it is not clear if the NSI concept is a descriptive or a normative tool. The second point we would like to make is that, when the role of the financial system was finally recognized by evolutionary traditions, it was just added as a "new" element within the NSI. The main aim became one of including the financial system within the NSI and looking for the "right" financial system for the "right" type of innovation. After addressing the weaknesses of the conceptualization of the state within the NSI and the difficulty of the evolutionary theory in understanding the financialization of the economy, our third and last point refers to a new way to view innovations. As Mariana Mazzuccato shows, the state has always been a fundamental, though indirect, actor for the development of certain innovations in certain sectors. Yet this is not enough, especially in a period of crisis. The state should direct innovative activities toward more basic and social needs, thus becoming an "innovator of first resort."

Suggested Citation

  • Giovanna Vertova, 2014. "The State and National Systems of Innovation: A Sympathetic Critique," Economics Working Paper Archive wp_823, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_823
    as

    Download full text from publisher

    File URL: http://www.levyinstitute.org/pubs/wp_823.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hsu, Po-Hsuan & Tian, Xuan & Xu, Yan, 2014. "Financial development and innovation: Cross-country evidence," Journal of Financial Economics, Elsevier, vol. 112(1), pages 116-135.
    2. James R. Brown & Steven M. Fazzari & Bruce C. Petersen, 2009. "Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom," Journal of Finance, American Finance Association, vol. 64(1), pages 151-185, February.
    3. Giovanni Dosi, 2000. "Finance, Innovation and Industrial Change," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 21, pages 621-641, Edward Elgar Publishing.
    4. Nelson, Richard R & Winter, Sidney G, 1974. "Neoclassical vs. Evolutionary Theories of Economic Growth: Critique and Prospectus," Economic Journal, Royal Economic Society, vol. 84(336), pages 886-905, December.
    5. Paul Gompers, 2002. "Corporations and the financing of innovation: The corporate venturing experience," Economic Review, Federal Reserve Bank of Atlanta, vol. 87(Q4), pages 1-17.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reynolds, Elisabeth B. & Uygun, Yilmaz, 2018. "Strengthening advanced manufacturing innovation ecosystems: The case of Massachusetts," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 178-191.
    2. Pedro López-Rubio & Norat Roig-Tierno & Francisco Mas-Verdú, 2022. "Assessing the Origins, Evolution and Prospects of National Innovation Systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 161-184, March.
    3. Cirillo, Valeria & Martinelli, Arianna & Nuvolari, Alessandro & Tranchero, Matteo, 2019. "Only one way to skin a cat? Heterogeneity and equifinality in European national innovation systems," Research Policy, Elsevier, vol. 48(4), pages 905-922.
    4. Lee, Sungjoo & Lee, Hakyeon & Lee, Changyong, 2020. "Open innovation at the national level: Towards a global innovation system," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    5. Radosevic, Slavo, 2022. "Techno-economic transformation in Eastern Europe and the former Soviet Union – A neo-Schumpeterian perspective," Research Policy, Elsevier, vol. 51(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Dosi & Valérie Revest & Alessandro Sapio, 2016. "Financial regimes, financialization patterns and industrial performances : preliminary remarks," Post-Print halshs-01418040, HAL.
    2. Alam, Ashraful & Uddin, Moshfique & Yazdifar, Hassan & Shafique, Sujana & Lartey, Theophilus, 2020. "R&D investment, firm performance and moderating role of system and safeguard: Evidence from emerging markets," Journal of Business Research, Elsevier, vol. 106(C), pages 94-105.
    3. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
    4. Yang, Bao & Chou, Hsin-I. & Zhao, Jing, 2020. "Innovation or dividend payout: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 68(C), pages 180-203.
    5. Dong, Xiao & Yu, Mingzhe, 2024. "Green bond issuance and green innovation: Evidence from China's energy industry," International Review of Financial Analysis, Elsevier, vol. 94(C).
    6. Ijaz Ur Rehman & Muhammad Shahbaz & Phouphet Kyophilavong, 2016. "Do Technological Development and Financial Development Promote Economic Growth: Fresh Evidence from Romania," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(2), pages 60-76, February.
    7. Wang, Rui & Yang, Shijie, 2023. "Credit ratings and firm innovation: Evidence from sovereign downgrades," Journal of Banking & Finance, Elsevier, vol. 148(C).
    8. Wang, Xun, 2022. "Capital account liberalization, financial dependence and technological innovation: Cross-country evidence," Journal of Banking & Finance, Elsevier, vol. 145(C).
    9. Lingyan Xu & Dandan Wang & Jianguo Du, 2022. "Spatial-Temporal Evolution and Influencing Factors of Urban Green and Smart Development Level in China: Evidence from 232 Prefecture-Level Cities," IJERPH, MDPI, vol. 19(7), pages 1-19, March.
    10. Su-Yin Cheng & Han Hou, 2022. "Innovation, financial development, and growth: evidences from industrial and emerging countries," Economic Change and Restructuring, Springer, vol. 55(3), pages 1629-1653, August.
    11. SooGeun Ahn & Jeewhan Yoon & YoungJun Kim, 2018. "The innovation activities of small and medium-sized enterprises and their growth: quantile regression analysis and structural equation modeling," The Journal of Technology Transfer, Springer, vol. 43(2), pages 316-342, April.
    12. Filippo Mezzanotti, 2021. "Roadblock to Innovation: The Role of Patent Litigation in Corporate R&D," Management Science, INFORMS, vol. 67(12), pages 7362-7390, December.
    13. Mare,Davide Salvatore & De Nicola,Francesca & Miguel Liriano,Faruk, 2021. "Financial Structure and Firm Innovation : Evidence from around the World," Policy Research Working Paper Series 9670, The World Bank.
    14. Wei-Chuan Kao, 2018. "Innovation quality of firms with the research and development tax credit," Review of Quantitative Finance and Accounting, Springer, vol. 51(1), pages 43-78, July.
    15. Alessandro Giovannini & Maurizio Iacopetta & Raoul Minetti, 2013. "Financial Markets, Banks, and Growth : Disentangling the links," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 105-147.
    16. Gordon, Elizabeth A. & Hsu, Hsiao-Tang & Huang, Huichi, 2020. "Peer R&D disclosure and corporate innovation: Evidence from American depositary receipt firms," Advances in accounting, Elsevier, vol. 49(C).
    17. Zhang, Ping & Wang, Yiru & Gao, Jieying, 2023. "Going public and innovation: Evidence from the ChiNext stock market," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 586-613.
    18. Chi, Jianxin Daniel & Su, Xunhua & Tang, Yun & Xu, Bin, 2020. "Is language an economic institution? Evidence from R&D investment," Journal of Corporate Finance, Elsevier, vol. 62(C).
    19. Li, Dongxu, 2024. "Horizontal mergers and heterogeneous firm investments: evidence from the United States," Journal of Empirical Finance, Elsevier, vol. 75(C).
    20. Xiang, Xiaojian & Liu, Chuanjiang & Yang, Mian, 2022. "Who is financing corporate green innovation?," International Review of Economics & Finance, Elsevier, vol. 78(C), pages 321-337.

    More about this item

    Keywords

    Government Intervention; Innovator of First Resort; National Systems of Innovation; Supply-side Economics;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lev:wrkpap:wp_823. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elizabeth Dunn (email available below). General contact details of provider: http://www.levyinstitute.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.