Paradigmatic Shifts in National Innovation Systems 1

Profound changes are taking place in the world economy and in the innovation systems of countries. The main influencing trends could be summarized by the terms globalization, liberalization, dematerialization, and technological revolution. Their joint effects have been the enhanced uncertainty and turbulence felt in the world economic system since the 1973 crisis and the gradual emergence of a different rationale for production and innovation. The techno-economic mass production paradigm of the past is gradually giving way in an increasing number of sectors to a new paradigm characterized by flexible manufacturing and the pervasive effects of the cluster of the so-called information technologies (IT) (Freeman and Perez, 1988; Piore and Sabel, 1984; Womak et al., 1990), based on the convergence of microelectronics, computers and telecommunications. This chapter deals with paradigmatic changes and structural adjustments of national systems of innovation (NSI) and related economic policies. In the past, structural changes in the organization of science and technology (S&T) have been associated with paradigmatic transitions in order to best fit the features of new emerging and dominating technologies. Freeman (1987) describes the evolution and progressive appearance of new kinds of institutions and mechanisms for technological development and professional education within NSIs pari passau with successive technological revolutions and associated techno-economic paradigms. Early institutions such as universities, scientific academics, and professional associations were followed by industrial R&D centers and eventually mission-oriented public research centers. Important mechanisms developed gradually: in the second half of the nineteenth century we observe the emergence of national and international patent protection systems, and later on, interfirm technology transfer mechanisms, interfirm technical cooperation, and industry-university relations. Current NSI structures are, therefore, the result of a historical evolution induced by a succession of techno-economic paradigms. The transition we are currently experiencing has brought about further structural adjustments of NSIs, which are already detectable. The goals of this chapter are to provide: