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How Innovation Systems and Development Theories complement each other

Natera, Jose Miguel and Pansera, Mario (2013): How Innovation Systems and Development Theories complement each other.

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Abstract

The paper aims at comparing some of the most influential theories of development with the notion of Innovation Systems (IS). The objective is to understand if this comparison can be used to delve into the role of innovation within the development process. We start defining the main features that characterizes Innovation Systems. Then we contrast it with different branches of development theories: the Sen’s theory of capability building and the Institutionalism, the neo-classic approach and cumulative processes (multiple equilibrium approaches) and finally, the Structures and System Theories (LA structuralism approach, the dependency and world-system theory). We conclude that the interaction between IS and the theories considered represents a mutual benefit. IS, indeed, provide a systemic vision that considers innovation as a holistic process, giving a central role to social and economic factors. Hence, IS might be successfully applied to complement the classic development approach. Innovation Systems could also get benefits from this interaction: development theories shed light on the different ways to think of systemic relationships. Finally, rather than focusing on the discussion of IS being or not a theory for development by itself, we believe that making this relational exercise could generate new benefits and frameworks of analysis for the research community.

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