Innovation System Research – Where it came from and where it might go

Author(s): Bengt-Åke Lundvall

Working Paper No.: 2007-01

Keywords: Economics of innovation, innovation system, national innovation system, innovation paradox, modes of innovation

When the first edition of Lundvall (1992) and of Nelson (1993) was published, the concept ‘national innovation system’ was known only by a handful of scholars and policy makers. Since then there has been a rapid and wide diffusion of the concept. In this paper we argue that during this process of diffusion there has been a distortion of the concept as compared to the original version as developed by Christopher Freeman and the IKE research group at Aalborg University. Policy makers and scholars have applied a narrow understanding of the concept and this has given rise to false ‘innovation paradoxes’ and left significant elements of innovation-based economic performance unexplained.

Without a broad definition of the national innovation system encompassing individual, organizational and inter-organizational learning, it is impossible to establish the link from innovation to economic growth. A double focus is needed where attention is given not only to the science infrastructure, but also to institutions/organisations that support competence building in labour markets, education and working life.

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