Innovation Paradox and Regional Innovation Strategies
Skokan Karel
Keywords:
innovation system, innovation paradox, regional innovation strateg y
Abstract:
Competitiveness of firms, regions and countries is determined by the level of productivity with
which they use allocated resources. A key factor for the growth in productivity is innovation.
Contemporary approach to innovation is based on the theory of innovation systems, and it
argues that, firms do not innovate in isolation but interact with other participants of the innovation
process. The systems approach views the ability of an economic system to innovate
as one of the key determinants of economic performance. It also explains the differences in
economic performance between countries and regions as a result of the low level of innovation
activities. The persistence of regional differences can be explained by the innovation paradox.
The regional innovation paradox explains that, there is a greater need to invest in innovation in
less developed regions, but there is a relatively smaller capacity of these areas to absorb public
funds set aside for innovation. This is in contrast with the situation in already developed areas
where public funding is more easily absorbed and has a greater probability of success. The
solution to this paradox seems to be in a regional innovation strategies which the European
Commission launched in the ninetieth of the last century. This paper is in twofold. In the
theoretical part, the paper explains the principles of innovation systems and regional innovation
paradox based on contemporary literature. In the second part of the paper, we analyse the
EU approach to regional innovation strategies as well as its development in Czech Republic in
the last decade. The study concludes that, the formal documentation of regional development
strategy without proper implementation and monitoring cannot become a necessary condition
for the effectiveness of regional innovation systems.
Fulltext download:
Innovation Paradox and Regional Innovation Strategies [PDF file] [Filesize: 1.14 MB]
|