Definitions and brief background of the National System of Innovation in South Africa. Essay

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A resource based economy can no longer provide desired levels of development and this is where National Systems of Innovation step in.Innovation and changes in technology have always been considered major keys to economic development and growth of a countrys economy. This paper will attempt to tackle the phenomenon that is National System of Innovation by using South Africa as a central focus. It will begin by addressing the background of NSI, a collection of definitions from the pioneering various authors on NSI, functions/importance of an NSI, a brief history of the National System of Innovation in South Africa, tackling the strengths and weakness of the system a solution to the NSI in the form of a new approach and to the final conclusion.
Brief background on the concept of NSI.
Lankhuizen and Woolthuis (2003) are of the view that the concept of National System of Innovation came intro fruition in the late 1970s .it was regarded as an approach that helped to understand how innovation evolves and the elements and framework conditions that determine and not only affect innovation but also economic development.
It can be summarised as referring to an approach that assists in understanding how innovation and interactive learning evolve in national economies and how they propel prosperity in an economy and international competitiveness. National System of Innovation offers a countrys policy makers the potential to derive appropriate leads in innovation development (Lankhuizen&Woolthuis, 2003).
Niosi (2000) puts forward the argument that NSI as a concept developed through a mixture of government inducement and market pull. The accompanying framework, based on Godin (2007), offers that the ultimate goal for a research system is innovation comprised of a system which includes sectors like the government, industry and the environment. Innovation is the cornerstone for the progress of science and technology.
Definition of the term National System of Innovation.
Freeman and Lundvall credit each other as the originator of this concept. Addressing Freeman 1982, he defined NSI as a network of institutions in the private and public sectors whose interactions, activities import, modify, initiate and diffuse modern technologies. He used this term to place emphasis on the importance of roles played by the government in developing a countrys technological infrastructure.
Lundvall (1992) defines NSI as elements and relationships which interact in the diffusion, production, and use of new and economically useful knowledge. These are normally located inside the borders of a nation. This definition can be best said to describe the interdependence between changes on institutional and technical.
Another definition comes from Nelson (1993), National System of Innovation refers to a set of institutions whose interactions determine the innovative performance of national firms.
Metcalf (1995) thinks of NSI as a system of interconnected institutions which individually and jointly contribute to the diffusion and development of new technologies. This system acts as the framework within which governments form and implement policies to influence the innovation process.The system creates stores and transfers knowledge and skills which in turn define new technologies.