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Small Country Innovation Systems Small Country Innovation Systems Small Country Innovation Systems Globalization, Change and Policy in Asia and Europe Edited by Charles Edquist CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Lund, Sweden and Leif Hommen CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Lund, Sweden Edward Elgar Cheltenham, UK • Northampton, MA, USA © Charles Edquist and Leif Hommen, 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2007943826 ISBN 978 1 84542 584 5 (cased) Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Contents List of contributors vii Preface ix List of abbreviations xi 1 Comparing national systems of innovation in Asia and Europe: theory and comparative framework 1 Charles Edquist and Leif Hommen PART I FAST GROWTH COUNTRIES 2 The rise and growth of a policy-driven economy: Taiwan 31 Antonio Balaguer, Yu-Ling Luo, Min-Hua Tsai, Shih-Chang Hung, Yee-Yeen Chu, Feng-Shang Wu, Mu-Yen Hsu and Kung Wang 3 From technology adopter to innovator: Singapore 71 Poh Kam Wong and Annette Singh 4Towards knowledge generation with bipolarized NSI: Korea 113 Chaisung Lim 5 High growth and innovation with low R&D: Ireland 156 Eoin O’Malley, Nola Hewitt-Dundas and Stephen Roper 6 From trade hub to innovation hub: Hong Kong 194 Naubahar Sharif and Erik Baark PART II SLOW GROWTH COUNTRIES 7Reconsidering the paradox of high R&D input and low innovation: Sweden 237 Pierre Bitard, Charles Edquist, Leif Hommen and Annika Rickne 8Low innovation intensity, high growth and specialized trajectories: Norway 281 Terje Grønning, Svein Erik Moen and Dorothy Sutherland Olsen v vi Contents 9 Challenged leadership or renewed vitality? The Netherlands 319 Bart Verspagen 10 Not just Nokia: Finland 355 Ville Kaitila and Markku Kotilainen 11 An NSI in transition? Denmark 403 Jesper Lindgaard Christensen, Birgitte Gregersen, Björn Johnson, Bengt-Åke Lundvall and Mark Tomlinson 12 Globalization and innovation policy 442 Leif Hommen and Charles Edquist Appendix: statistical bases of comparison for ten ‘small country’ NSI 485 Pierre Bitard, Leif Hommen and Jekaterina Novikova Index 531 Contributors Erik Baark,Division of Social Science, The Hong Kong University of Science and Technology, Hong Kong Antonio Balaguer, Science & Technology Policy Research and Information Centre, National Applied Research Laboratories, Taipei, Taiwan Pierre Bitard, Innovation Intelligence, Europe Department, Paris Yee-Yeen Chu, Industrial Engineering and Engineering Management Department, National Tsing Hua University, Hsinchu, Taiwan Charles Edquist, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Lund, Sweden Birgitte Gregersen, Department of Business Studies, Aalborg University, Aalborg, Denmark Terje Grønning, Institute for Educational Research, University of Oslo, Oslo, Norway Nola Hewitt-Dundas, School of Management and Economics, Queen’s University Belfast, Belfast, Northern Ireland Leif Hommen, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Lund, Sweden Mu-Yen Hsu,Graduate Institute of Technology and Innovation Management, National Chengchi University, Taipei, Taiwan Shih-Chang Hung, Institute of Technology Management, National Tsing Hua University, Hsinchu, Taiwan Björn Johnson, Department of Business Studies, Aalborg University, Aalborg, Denmark Ville Kaitila, The Research Institute of the Finnish Economy, Helsinki, Finland Markku Kotilainen, The Research Institute of the Finnish Economy, Helsinki, Finland Chaisung Lim, School of Business, Konkuk University, Seoul, Korea vii viii Contributors Jesper Lindgaard Christensen, Department of Business Studies, Aalborg University, Aalborg, Denmark Bengt-Åke Lundvall, Department of Business Studies, Aalborg University, Aalborg, Denmark Yu-Ling Luo, Science & Technology Policy Research and Information Centre, National Applied Research Laboratories, Taipei, Taiwan Svein Erik Moen, Centre for Technology, Innovation and Culture, University of Oslo, Oslo, Norway Jekaterina Novikova, European Commission, DG Regional Policy, Brussels, Belgium Dorothy Sutherland Olsen, Institute for Educational Research, University of Oslo, Oslo, Norway Eoin O’Malley, The Economic and Social Research Institute, Dublin, Ireland Annika Rickne, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Lund, Sweden and The Dahmén Institute, Örebro, Sweden Stephen Roper, Economy and Strategy Group, Aston University, Birmingham, UK Naubahar Sharif,Division of Social Science, The Hong Kong University of Science and Technology, Hong Kong Annette Singh, NUS Entrepreneurship Centre, National University of Singapore, Singapore Mark Tomlinson, Department of Social Policy and Social Work, University of Oxford, Oxford, UK Min-Hua Tsai, Science & Technology Policy Research and Information Centre, National Applied Research Laboratories, Taipei, Taiwan Bart Verspagen, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology, Eindhoven, The Netherlands Kung Wang, School of Management, National Central University, Jonghli City, Taiwan Poh Kam Wong, NUS Entrepreneurship Centre, National University of Singapore, Singapore Feng-Shang Wu,Graduate Institute of Technology and Innovation Management, National Chengchi University, Taipei, Taiwan Preface This book is the outcome of a comparative study of ten small country national systems of innovation (NSI) in Europe and Asia, conducted from 2002 to 2007 under the auspices of the European Science Foundation (ESF, website: www.esf.org) and financed by participating national research councils. The funding source for each of the separate national case studies was one or more national research councils in the country concerned, as will be detailed in each case study. For Ireland, the Nordic countries and the Netherlands, the funding was coordinated by the ESF. The coordina- tion of the whole project and the writing of this introductory chapter as well as the concluding chapter were financed by the Swedish Agency for Innovation Systems (VINNOVA) and the Swedish Institute for Growth Policy Studies (ITPS). We wish to thank all of these organizations for their generous support. Contributors to the project included national research teams in Denmark, Finland, Hong Kong, Ireland, (South) Korea, the Netherlands, Norway, Singapore, Sweden and Taiwan. NSI in these countries were the objects of study, and participants in the research project eventually came to refer to it as the ‘ten countries project’. The total number of researchers involved was about 35. Within the project, several workshops were held in Copenhagen, Oslo, Taipei, Lund and Seoul, and organized by the relevant national research teams. These events not only marked progress in the research process but were also very important for driving the project forward. In this and other respects, the ‘ten countries project’ proceeded in a truly evolutionary manner – theoretically, methodologically and empir- ically (as described in the introductory chapter to this book). We are there- fore very grateful to the hosts for the workshops, whose efforts and achievements made these meetings so successful. Finally, we want to express our deep gratitude to all the participants in the project. (They are too many to name here, but please see the list of participants!) This project owes its coherence and successful completion to their knowledge, abilities and willingness to collaborate. In preparing this book for publication we have also incurred several add- itional debts of gratitude. In particular, we wish to thank the management and staff of Edward Elgar Publishing Ltd, not only for having agreed to publish the work but also for their patience, understanding, and kind ix x Preface assistance with preparing the manuscript for publication. We are also very grateful to Emelie Stenborg for her vital contributions to this process. Charles Edquist and Leif Hommen Lund, 2007 Abbreviations A*STAR Agency for Science, Technology and Research (Singapore) ACE Action Community for Entrepreneurship (Singapore) ADSL asymmetrical digital subscriber line ARF Applied Research Fund (Hong Kong) ASTRI Applied Science and Technology Research Institute (Hong Kong) BERD business expenditure on research and development BIT efficient use of ICT and e-business programme BMRC Bio-Medical Research Council (Singapore) BUNT Business Development Using New Technology (Norway) CDMA code division multiple access CEPD Council for Economic Planning and Development (Taiwan) CIS(1/2/3) Community Innovation Survey (1, 2 or 3) CITB Commerce, Industry and Technology Bureau (Hong Kong) CMEs coordinated market economies CVU centres of tertiary education (Denmark) DEMO 2000 Technology development in the petroleum sector pro- gramme (Norway) DETE Department of Enterprise, Trade and Employment (Ireland) DISKO survey on the Danish NSI DK Denmark DUI learning learning
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