Restructuring and Embeddeness Of Business Enterprises - Towards An Innovation System Perspective On Diffusion Policy

The paper deals with the policies for an idealized transition of a National System of Innovation (NSI) from a system reflecting a relatively closed industrializing economy to an NSI which reflects the conditions of a well-developed "Information Society" and "Learning Economy". The analysis of the transition process analyse the NSI from the viewpoint of the needs of the existing firms of the business sector. The problem is how different types of industrial and technology policy may help the business-oriented restructuring of the NSI. The policies are: horizontal support for R & D of advanced firms; SME schemes for laggard firms, etc.; new institutions and organizations for the cooperative production of new technological inputs, such as customized chips; proactive diffusion policies; and market building. It is suggested that policies should initially contribute to the self-organised restructuring of advanced enterprises. On the basis is this preliminary change in the NSI it is possible to turn promoting the restructuring of imitators and laggards which have less awareness and fewer absorbtion capabilities of the new technological input. The goal is to generate a cumulative learning processes about restructuring which benefit both the firms receiving support and other less advanced firms. In the implementation of the policies it is important to recognize the time dependence (need to exploit the learning potential from advanced firm restructuring; and the need to assure sufficiently strong system effects).