HOSEIN PIRANFAR AND PELIN DEMIREL, BUSINESS SCHOOL, UNIVERSITY OF EAST LONDON, UK
Abstract: The economic gap between developing and developed countries has been attributed to several reasons but mainly to their relative capacities to create original knowledge and novel technology. Industrialized nations rely on this capacity for their economic growth while developing nations, due to lack of innovative capacity, seem to be stuck in a vicious growth circle in which they need to import the knowledge and technology they need, thus increasing the very dependence they seek to reduce. Although innovation in a country feeds on the existing technology, the innovative capacity of a country depends on factors such as culture, history, institutions, politics and their interdependent relationship. This foundation is known as the National System of Innovation (NSI). Despite a focus on a single country, NSI also deals with cross-country comparisons. Exploring system differences in terms of these factors could provide a policy framework to enhance economic growth in developing countries. This paper explores the determinants of National Systems of Innovation and their role in explaining economic development in a global context. The case example used is that of Turkey. By providing a detailed examination of NSI in Turkey comparisons are derived for similar and as well as more industrially developed countries. Thus the paper offers national practices (specific to Turkey) that support the creation of differing rates of economic development. More specifically these findings suggest policy measures to support the economic growth of the country.
Keywords: National Systems of Innovation, institutions, development, learning, technology, economy, Turkey