The Characteristics of Small Country National Innovation Systems

Abstract

The systemic approach to innovation processes started to emerge already in the 1980s. Since then there has been an elaborate theoretical discussion about national innovation systems and their development. There has been much less empirical research on the phenomenon. This chapter aims to outline the specific characteristics of small-scale national innovation systems. The discussion is predominantly based on a fragmented body of empirical works about various elements of innovation systems and policies. The evidence shows that small countries are not homogeneous in their development pattern or commitment to innovation. Some smaller economies belong among the world leaders in innovation and others lag far behind. The major commonalities of small innovation systems include the higher importance of inward FDI and knowledge flows, well-integrated actions and policy schemes, extensive international collaboration and cluster memberships, clear development focus, human and social capital and higher flexibility than in larger innovation systems.