The Dynamics Of National Innovation Systems (NIS)

With the arrival of the knowledge economy era, innovation has become an important driving force to promote the economic and social development of countries in the world. And the NIS theory, which emphasize the important role of innovation in the development of a country and provides an important approach for each country, especially the catching-up countries, to improve their international competitiveness, has attracted more and more attention from institutions and governments in the last decades.While a substantial amount of research on NIS has been devoted to the normative analysis of cross-country differences in innovative capabilities and the related institutional and policy framework, much less attention has been given to diagnosis analysis. Furthermore, the quantitative research on performance evaluation of NIS has typically focused on the cross-country comparative aspects(how and why performance differ across country?),rather than pay any attention to the dynamics of national innovation system over time.Based on a in-depth summarize of the study of national innovation system theory, this paper combined the cross-country comparative approach and the time series perspective, adopted the panel cointegration analysis,panel vector error correction model and panel VAR to investigate the dynamics of national innovation system by using a panel dataset from28OECD countries for the period1980-2008. We used the framework of Fulvio,Castellacci(2011) for reference, and investigated the dynamics of national innovation system by analyze two-way dynamic relationships between two aspects of NIS (innovative capability and absorptive capacity) and try to make some difference in research perspective and methods.The empirical results indicate that innovative capability and absorptive capacity variables are indeed linked by a set of long-term structural relationships over time which drive the dynamics of national innovation system.Follows the framework:the first part is an introduction of the background, purpose, approaches and innovation of this study.The second part is a literature review, which includes the summarize of the theoretical basement and recent development of the study of NIS and a brief evaluation.The third part is the model and empirical method in which we represent the dynamics of the national innovation system as a VAR model.In the fourth part, we highlight the key set of variables on which our model will focus by considering the possibility and availability, and give a brief description of the data source and definition of the variables. The fifth part is the empirical test results, such as panel VECM and Panel VAR.The last part summarizes the paper. It concludes some conclusions, suggests and limitation of this article.