National Innovation Systems is the network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies.

1. National
Innovation
System
Thanakrit Lersmethasakul
Lersmethasakul@live.com

2. 1.What is NIS ?
“ .. the network of institutions in the public and private sectors whose activities and
interactions initiate, import, modify and diffuse new technologies.” (Freeman, 1987)
“ .. the elements and relationships which interact in the production, diffusion and use of
new, and economically useful, knowledge ... and are either located within or rooted inside
the borders of a nation state.” (Lundvall, 1992)
“... a set of institutions whose interactions determine the innovative performance ... of
national firms.” (Nelson, 1993)
“ .. the national institutions, their incentive structures and their competencies, that
determine the rate and direction of technological learning (or the volume and composition
of change generating activities) in a country.” (Patel and Pavitt, 1994)
“.. that set of distinct institutions which jointly and individually contribute to the
development and diffusion of new technologies and which provides the framework within
which governments form and implement policies to influence the innovation process. As
such it is a system of interconnected institutions to create, store and transfer the
knowledge, skills and artefacts which define new technologies.” (Metcalfe, 1995)

3. 1.What is NIS ?
The National Innovation System (NIS) is the flow of
technology and information among people, enterprises and
institutions which is key to the innovative process on the
national level.
The key mechanism (OECD) of NIS include
- Joint industry activities
- Public/private sector interactions
- Technology diffusion
- Personnel mobility

4. 2. Why do we need it ?
The NIS policies and programs help to enhance
a country’s innovative and technological
capacity while NIS approach offers improvements
over alternative frameworks that conceptualize
technological development in terms of inputs (e.g.
science funding) and outputs (e.g. publications and
patents). As a result, NIS bring to help policy
makers develop approaches for enhancing
innovative performance in the knowledge-base
economies of today (Feinson).

5. 3. How it has been used ?
Two phases of NIS
- Develop indicators to map knowledge flows.
- Measuring institutional linkages, human
resource flows, industrial clusters and
innovative firm behaviors.

6. 3. How it has been used ?
Activities and functions (Feinson, 2003) within NIS
for producing, diffusing and using innovations.
- To create human capital.
- To create and diffuse technological opportunities.
- To create and diffuse products.
- To incubate in order to provide facilities, equipment, and
administrative support.
- To facilitate regulation for technologies, materials, and products
that may enlarge the market and enhance market access.
- To legitimize technology and firms.
- To create markets and diffuse market knowledge.
- To enhance networking.
- To direct technology, market, and partner research.
- To facilitate financing.
- To create a labor market that can be utilized.

7. 3. How it has been used ?
Proposed sub-functions – or activities – of innovation systems
(Markard and Truffer, 2008).

8. 3. How it has been used ?
Proposed indicators for measuring performance at the level of sub-functions of
innovation system (Markard and Truffer, 2008).

9. 3. How it has been used ?
The scheme of analysis (Bergek, et al., 2008).

10. Operation of
NIS

11. Example of NIS map
Norwegian system of innovation

12. Key Segment of Player in NIS
• Government body
• Bridging institute e.g. research council
• Private enterprises
• Universities
• Other public and private organization

13. Step in Analyzing NIS
• Develop NIS map
• Analyze the degree of relationship
between each organization

14. Development of a Sectoral Innovation System: Thai Automotive Sector
(Intarakumnerd and Gerdsri, 2014)
Roles and capabilities of key actors
Structure of sectoral innovation system supporting the automotive industry in Thailand.

15. Development of a Sectoral Innovation System: Thai Automotive Sector
(Intarakumnerd and Gerdsri, 2014)
Roles and capabilities of key actors
1. Key actors
1.1 Carmakers and auto-parts suppliers
Group 1: Automotive Assemblers
18 assemblers (subsidiaries of TNCs or joint ventures).
Group 2: Direct Suppliers or OEM Suppliers (Tier-1)
648 auto-part manufacturers (458 auto-part for car, 190 auto-part
for motorcycle).
Group 3: Indirect Suppliers or Raw Material Suppliers (Tier-2/3)
1641 indirect suppliers (raw material suppliers for the tier-1
suppliers, and subcontractors of the tier-1 suppliers).
1.2 Government: Policy and sector-specific promotion agency
Thailand Automotive Institute (TAI) (operates under the Industry
Development Foundation set up by the Ministry of Industry).

16. Development of a Sectoral Innovation System: Thai Automotive Sector
(Intarakumnerd and Gerdsri, 2014)
Roles and capabilities of key actors
1.3 Universities and research institutes
Universities: Chulalongkorn University, King Mongkut's Institute of
Technology Ladkrabang (KMITL), King Mongkut's University of Technology Thonburi
(KMUTT), King Mongkut's University of Technology North Bangkok (KMUTNB) and
Thai-Nichi Institute of Technology (TNI).
Research institutes: NSTDA.
1.4 Private-sector industrial associations and technology promotion agency
Federal Thai Industries (FTI)
- Thai Auto-Parts Manufacturers Association (TAPMA): 528 companies
(from tier-3 to tier-1) on its membership list.
- Technology Promotion Association (Thailand-Japan) or TPA.

17. Development of a Sectoral Innovation System: Thai Automotive Sector
(Intarakumnerd and Gerdsri, 2014)
Roles and capabilities of key actors
2. Roles of key drivers
2.1 Carmakers and auto-parts suppliers
- Production
- Disseminating technology
2.2 Government
- Policy and promotion
2.3 Universities and research institutes
- Generating basic knowledge
- Providing education
2.4 Associations and promotion agency
- Central voice to protect, support and develop industry
- Promoting knowledge
- Disseminating technology

18. Development of a Sectoral Innovation System: Thai Automotive Sector
(Intarakumnerd and Gerdsri, 2014)
Linkages and interactions
1. Carmakers - Auto-parts suppliers
- Transferring technology
- Technology licensing contract
- Shareholding
2. University – Industry
- Curriculum development
- Joint programs
- Student internships
- Co-research projects
3. Firms - Government agencies
- Human resource development

19. References
Bergek, A., Jacobsson, S., Carlsson, B., Lindmarki, S., Rickne, A., 2005. Analysing the dynamics and
functionality of sectoral innovation systems – a manual. In: 10 Year Anniversary DRUID Summer
Conference, Copenhagen, June 27–29.
Chaminade, C., Edquist, C., 2005. From Theory To Practice: The Use of Systems of Innovation Approach
in Innovation Policy. Lund University, Lund.
Feinson, S. (2003). National Innovation Systems Overview and Country Cases.
Hekkert, M., Suurs, R.A.A., Negro, S., Kuhlmann, S., Smits, R., 2007. Functions of Innovation Systems: A
new approach for analysing technological change. Technological Forecasting and Social Change 74 (4),
413–432.
Intarakumnerd, P., & Gerdsri, N. (2014). Implications of Technology Management and Policy on the
Development of a Sectoral Innovation System: Lessons Learned Through the Evolution of Thai
Automotive Sector. International Journal of Innovation and Technology Management, 11(03),
1440009. doi: 10.1142/s0219877014400094
Markard, J., & Truffer, B. (2008). Technological innovation systems and the multi-level perspective:
Towards an integrated framework. Research Policy, 37(4), 596-615. doi: 10.1016/j.respol.2008.01.004
National Innovation Systems. Organization for Economic Co-operation and Development.

20. “ .. the network of institutions in the public and
private sectors whose activities and interactions
initiate, import, modify and diffuse new technologies.”
(Freeman, 1987)
THANK YOU