Microsoft Word bal paper with addendum doc

 

 

 

 

 

 

 

 

 

National Innovation Systems - Analytical Concept and 

Development Tool 

 

by 

Bengt-Åke Lundvall 

 

Aalborg University 

& 

Tsinghua University 

 

 

 

 

 

 

Second version of paper to be presented at the DRUID-conference in Copenhagen June 27-

June 29, 2005 

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National Innovation Systems - Analytical Concept and 

Development Tool 

Bengt-Åke Lundvall 

Abstract 

The term national system of innovation has been around for more than 20 years and today it has 

become widely spread among policy makers as well as scholars all over the world. In this lecture I 

will take stock and look ahead from a rather personal point of view. I will give some insight in why 

the concept came about and give some space to criticism and self-criticism. I will mention but 

certainly not give justice to alternative conceptualizations of innovation system. 

In the paper I reflect on the origin and use of the national innovation system concept in terms of 

theory and practice. I will argue that the concept has some characteristics in common with an 

engineering approach but also with critical theory and grounded theory. The intuition behind the 

Aalborg-version of the NSI-concept pointed in the right direction but the concept was certainly not 

fully worked out when first introduced. Some of the major weaknesses have been repaired but some 

remain. 

In the paper I criticize attempts to make the concept ‘more rigorous’ through organizing the 

definition and analysis around a list of  ‘functions’, ‘factors’ and ‘activities’ and I present the 

principles used to organize the Danish DISKO-project as an alternative and less agnostic approach.

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Here a core of the system is defined and it is illustrated that it is necessary to both to understand 

micro-behavior in the core and understand ‘the wider setting’ within which the core operates. 

At the end of the paper I discuss some further developments needed to make the concept relevant 

and applicable to developing countries. Here special attention is given to institutions and 

capabilities supporting learning. I point to the need to give more emphasis to the distribution of 

power, to institution building and to the openness of innovation systems.