Rethinking a national innovation system: The small country as 'SME'

Technology Analysis and Strategic Management

Volumn 11, Issue 3, 1999, Pages 431-462

  Davenport, Sally ^a,b   Bibby, David ^b  

^a VICTORIA UNIVERSITY OF WELLINGTON   (New Zealand)

^b CALLAGHAN INNOVATION   (New Zealand)

Author keywords

[No Author keywords available]

Indexed keywords

INNOVATION; SCIENCE AND TECHNOLOGY; SMALL AND MEDIUM-SIZED ENTERPRISE;

NEW ZEALAND;

EID: 0032734654     PISSN: 09537325     EISSN: None     Source Type: Journal    
DOI: 10.1080/095373299107447     Document Type: Article

References (156)

1. C. Shearman, 'Communities, Networks, Creativity and Culture: Insights into Localisation Within Globalisation', in: M. Talalay, C. Farrands & R. Tooze (Eds), Technology, Culture and Competitiveness: Change in the World Political Economy (London, Routledge, 1997), pp. 107-125.
2. A 'national innovation system' refers to a national system for technical innovation, including the institutions and mechanisms that support innovation. Despite the fact that it is not well defined, the concept of a 'national innovation system' has become diffused through the innovation policy literature in recent years and is often applied in a comparative sense, that is comparing one country's innovation system to another R. Nelson (Ed), National Innovation Systems (New York, Oxford University Press, 1993).
3. See for example: I. Nonaka, H. Takeuchi & K. Umemoto, 'A Theory of Organizational Knowledge Creation', International Journal of Technology Management, Special Issue on Unlearning and Learning, 11, 7/8, 1996, pp. 833-845; R. Grant, 'Toward a Knowledge-based Theory of the Firm', Strategic Management Journal, 17, 1996, pp. 109-122
4. See for example: I. Nonaka, H. Takeuchi & K. Umemoto, 'A Theory of Organizational Knowledge Creation', International Journal of Technology Management, Special Issue on Unlearning and Learning, 11, 7/8, 1996, pp. 833-845; R. Grant, 'Toward a Knowledge-based Theory of the Firm', Strategic Management Journal, 17, 1996, pp. 109-122
5. For example: J. Fleck, 'Contingent Knowledge and Technology Development', Technobgy Analysis and Strategic Management, 9, 4, 1997, pp. 383-397; B. Kogut & U. Zander, 'Knowledge of the Firm, Combinative Abilities and the Replication of Technology', Organization Science, 1992, 3, 3, pp. 383-397; J. Tidd & M. Trewhella, 'Organizational and Technological Antecedents for Knowledge Acquisition and Learning', R&D Management, 27, 4, 1997, pp. 359-375.
6. For example: J. Fleck, 'Contingent Knowledge and Technology Development', Technobgy Analysis and Strategic Management, 9, 4, 1997, pp. 383-397; B. Kogut & U. Zander, 'Knowledge of the Firm, Combinative Abilities and the Replication of Technology', Organization Science, 1992, 3, 3, pp. 383-397; J. Tidd & M. Trewhella, 'Organizational and Technological Antecedents for Knowledge Acquisition and Learning', R&D Management, 27, 4, 1997, pp. 359-375.
7. For example: J. Fleck, 'Contingent Knowledge and Technology Development', Technobgy Analysis and Strategic Management, 9, 4, 1997, pp. 383-397; B. Kogut & U. Zander, 'Knowledge of the Firm, Combinative Abilities and the Replication of Technology', Organization Science, 1992, 3, 3, pp. 383-397; J. Tidd & M. Trewhella, 'Organizational and Technological Antecedents for Knowledge Acquisition and Learning', R&D Management, 27, 4, 1997, pp. 359-375.
8. For example: M. Dodgson, 'Learning, Trust and Inter-firm Technological Linkages: Some Theoretical Associations', in: R. Coombs, A, Richards, P. Saviotti & V. Walsh (Eds), Technological Collaboration: The Dynamics of Cooperation in Industrial Innovation (Cheltenham, Edward Elgar, 1996), pp. 54-75; J. Senkar & M. Sharp, 'Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology', Technology Analysis and Strategic Management, 9, 1, 1997, pp. 35-51; S. Davenport & J. Davies, 'Managers and Research Collaboration: Opportunities for Organisational Learning', in: L. Lefebrve, R. Mason & T. Khalil (Eds), Management of Technology, Sustainable Development and Eco-efficiency (Amsterdam, Elsevier Science, 1998), pp. 111-120.
9. For example: M. Dodgson, 'Learning, Trust and Inter-firm Technological Linkages: Some Theoretical Associations', in: R. Coombs, A, Richards, P. Saviotti & V. Walsh (Eds), Technological Collaboration: The Dynamics of Cooperation in Industrial Innovation (Cheltenham, Edward Elgar, 1996), pp. 54-75; J. Senkar & M. Sharp, 'Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology', Technology Analysis and Strategic Management, 9, 1, 1997, pp. 35-51; S. Davenport & J. Davies, 'Managers and Research Collaboration: Opportunities for Organisational Learning', in: L. Lefebrve, R. Mason & T. Khalil (Eds), Management of Technology, Sustainable Development and Eco-efficiency (Amsterdam, Elsevier Science, 1998), pp. 111-120.
10. For example: M. Dodgson, 'Learning, Trust and Inter-firm Technological Linkages: Some Theoretical Associations', in: R. Coombs, A, Richards, P. Saviotti & V. Walsh (Eds), Technological Collaboration: The Dynamics of Cooperation in Industrial Innovation (Cheltenham, Edward Elgar, 1996), pp. 54-75; J. Senkar & M. Sharp, 'Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology', Technology Analysis and Strategic Management, 9, 1, 1997, pp. 35-51; S. Davenport & J. Davies, 'Managers and Research Collaboration: Opportunities for Organisational Learning', in: L. Lefebrve, R. Mason & T. Khalil (Eds), Management of Technology, Sustainable Development and Eco-efficiency (Amsterdam, Elsevier Science, 1998), pp. 111-120.
11. M. Gibbons, C. Limoges, H. Nowotny, S. Schwartzman, P. Scott & M. Trow, The New Production of Knowledge: The Dynamics of Science and Research in Contemporary Societies (London, Sage, 1994).
12. Ibid.
13. W. Cohen & D.V. Levinthal 'Absorptive Capacity: A New Perspective on Learning and Innovation', Administrative Science Quarterly, 35, 1990, pp. 128-152.
14. D. Miller, 'The Architecture of Simplicity', Academy of Management Review, 18, 1, 1993, pp. 116-138.
15. D. Mowery, J. Oxley and B. Silverman, 'Strategic Alliances and Interfirm Knowledge Transfer', Strategic Management Journal, 17, 1996, Winter Special Issue, pp. 77-91.
16. D. Levinthal & J. March, 'The Myopia of Learning', Strategic Management Journal, 14, 1993, pp. 95-112.
17. J. Russo & P Schoemaker 'Managing Overconfidence', Sloan Management Review, Winter, 1992, pp. 7-17.
18. Levinthal & March, op. cit., Ref. 11.
19. Mowery et. al., op. cit., Ref. 10.
20. J. Senker & W. Faulkner, 'Networks, Tacit Knowledge and Innovation', in: R. Coombs, A. Richards, P. Saviotti & V. Walsh (Eds), Technological Collaboration: The Dynamics of Cooperation in Industrial Innovation (Cheltenham, Edward Elgar, 1996), pp. 76-97.
21. R. Garud & P. Nayyar 'Transformative Capacity: Continual Structuring by Intertemporal Technology Transfer', Strategic Management Journal, 15, 1994, pp. 365-385.
22. For example: P. Drucker, 'The New Society of Organizations', Harvard Business Review, September-October 1992, pp. 95-104.
23. M. Granovetter, 'Problems of Explanation in Economic Sociology', in: N. Norhria & R. Eccles (Eds), Networks and Organizations: Structure, Form and Action (Boston, Harvard Business School Press, 1992), pp. 25-56; S. Park, 'Networks and Embeddedness in the Dynamic Types of New Industrial Districts, Progress in Human Geography, 20, 4, 1996, pp. 476-493.
24. M. Granovetter, 'Problems of Explanation in Economic Sociology', in: N. Norhria & R. Eccles (Eds), Networks and Organizations: Structure, Form and Action (Boston, Harvard Business School Press, 1992), pp. 25-56; S. Park, 'Networks and Embeddedness in the Dynamic Types of New Industrial Districts, Progress in Human Geography, 20, 4, 1996, pp. 476-493.
25. R. Johnston, 'The Conundrums of Innovation', Science, Technology and Innovation, April 1997, pp. 23-29.
26. Organisation for Economic Cooperation and Development (OECD), Technology and the Economy: The Key Relationships (Paris, OECD, 1992).
27. Ibid.
28. F. Chenais, 'National Systems of Innovation, Foreign Direct Investment and the Operations of Multinational Enterprises', in: B.-A. Lundvall (Ed.), National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning (London, Pinter, 1992), pp. 265-295.
29. D. Archibugi & J. Michie, 'The Globalisation of Technology: a New Taxonomy', in: D. Archibugi & J. Michie (Eds), Technology, Globalisation and Economic Performance (Cambridge, Cambridge University Press, 1997), pp. 172-197.
30. J. Howells, 'The Internationalization of R&D and the Development of Global Research Networks', Regional Studies, 24, 6, 1990, pp. 495-512.
31. OCED, op. cit., Ref. 20.
32. Ibid.
33. J. Hagedoorn, 'Understanding the Rationale of Strategic Technology Partnering: Interorganizational Modes of Cooperation and Sectoral Differences', Strategic Management Journal, 14, 1993, pp. 371-385. Mowery et. al., op. cit., Ref. 10.
34. J. Hagedoorn, 'Understanding the Rationale of Strategic Technology Partnering: Interorganizational Modes of Cooperation and Sectoral Differences', Strategic Management Journal, 14, 1993, pp. 371-385. Mowery et. al., op. cit., Ref. 10.
35. S. Davenport & A. Miller, 'International Research Alliance in Superconductivity: A Case of Access to Knowledge', paper presented at the Academy of Management Conference, San Diego, 1998.
36. OCED, op. cit., Ref. 20.
37. Chenais, op. cit., Ref. 22.
38. Shearman, op. cit., Ref. 1.
39. Ibid.
40. M. van Geenhuizen & P. Nijkamp, 'Improving the Knowledge Capability of Cities: The Case of Mainport Rotterdam', International Journal of Technology Management, 15, 6/7, 1998, pp. 691-709.
41. Shearman, op. cit., Ref. 1.
42. M. Porter, The Competitive Advantage of Nations (London, MacMillan, 1990).
43. Park, op. cit., Ref. 18.
44. Ibid.
45. OCED, op. cit., Ref. 20.
46. Archibugi & Michie, op. cit., Ref. 23.
47. M. Sharp & K. Pavitt, 'Technology Policies in the 1990s: Old Trends and New Realities', Journal of Common Market Studies, 31, 2, 1993, pp. 129-151.
48. M. Fransman, 'Is National Technology Policy Obsolete in a Globalised World? The Japanese Response', in: D. Archibugi & J. Michie (Eds), Technology, Globalisation and Economic Performance (Cambridge, Cambridge University Press, 1997), pp. 50-82.
49. Archibugi & Michie, op. cit., Ref. 23.
50. OCED, op. cit., Ref. 20.
51. Shearman, op. cit., Ref. 1.
52. M. Cusmano & D. Elenkov, 'Linking International Technology Transfer with Strategy and Management: A Literature Commentary', Research Policy, 23, 1994, pp. 195-215.
53. D. Mowery, 'The Challenges of International Trade to U.S. Technology Policy', in: M Harris & G. Moore (Eds), Linking Trade and Technology Policies: An International Comparison of the Policies of Industrialized Nations (Washington, National Academy Press, 1992), pp. 121-138.
54. R. Nelson & N. Rosenberg, 'Technical Innovation and National Systems', in: R. Nelson (Ed), National Innovation Systems (New York, Oxford University Press, 1993), pp. 3-21.
55. R. Reich, The Work of Nations (London, Simon & Schuster, 1991).
56. B.-A. Lundvall, 'Introduction', in: B.-A. Lundvall (Ed), National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning (London, Pinter, 1992), pp. 1-19.
57. Ibid.
58. D. Mowery & J. Oxley, 'Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems', in: D. Archibugi & J. Michie (Eds), Technology, Globalisation and Economic Performance (Cambridge, Cambridge University Press, 1997), pp. 138-171.
59. 'Basic research skills are in general less internationally mobile than published papers'. Sharp & Pavitt, op. cit., Ref. 40.
60. Mowery & Oxley, op. cit., Ref. 51.
61. P. Patel & K. Pavitt, 'Large Firms in the Production of the World's Technology. An Important Case of 'Non-Globalisation", Journal of International Business Studies, 22, 1, 1991, pp. 1-21.
62. M. Sharp, 'Technology, Globalisation and Industry Policy', in: M. Talalay, C. Farrands & R. Tooze (Eds), Technology, Culture and Competitiveness: Change in the World Political Economy (London, Routledge, 1997), pp. 90-106.
63. L. Hiraoka, 'Introduction: Industrial Policy and Technological Competitiveness', International Journal of Technology Management, 15, 6/7, 1998, pp. 532-525.
64. V. Walsh, 'Technology and the Competitiveness of Small Countries: Review', in: C. Freeman & B-A. Lundvall (Eds), Small Countries Facing the Technological Revolution (London, Pinter, 1988), pp. 37-66.
65. L. Soete, 'Technical Change and International Implications for Small Countries', in: C. Freeman & B-A Lundvall (Eds), Small Countries Facing the Technological Revolution (London, Pinter, 1988), pp. 98-110.
66. Walsh, op. cit., Ref. 57.
67. Ibid.
68. Ibid.
69. OCED, op. cit., Ref. 20.
70. Walsh, op. cit., Ref. 57.
71. It should be noted that exploitation of cheap labour resources, one concern about FDI for developing nations, is less of an issue in the advanced small nations.
72. B. Kogut, G. Walker, W. Shan & D-J. Kim, 'Platform Technologies and National Industrial Networks', in: J. Hagedoorn (Ed.), Technical Change and the World Economy: Convergence and Divergence in Technology Strategies (Aldershot, Edward Elgar, 1995), pp. 58-82.
73. Ibid.
74. R. Rothwell, 'Small Firms, Innovation and Industrial Change', Small Business Economics, 1, 1989, pp. 51-64.
75. F. Chesnais, 'Science, Technology and Competitiveness;, STI Review, 1, Autumn 1986, pp. 86-129; Walsh, op. cit., Ref. 57.
76. F. Chesnais, 'Science, Technology and Competitiveness;, STI Review, 1, Autumn 1986, pp. 86-129; Walsh, op. cit., Ref. 57.
77. For example: R. Rothwell & M. Dodgson, 'Innovation and Size of Firm', in: M. Dodgson & R. Rothwell (Eds), Handbook of Industrial Innovation (Cheltenham, Edward Elgar, 1994), pp. 310-324; B. Nooteboom, 'Innovation and Diffusion in Small Firms: Theory and Evidence', Small Business Economics, 6, 1994, pp. 327-347.
78. For example: R. Rothwell & M. Dodgson, 'Innovation and Size of Firm', in: M. Dodgson & R. Rothwell (Eds), Handbook of Industrial Innovation (Cheltenham, Edward Elgar, 1994), pp. 310-324; B. Nooteboom, 'Innovation and Diffusion in Small Firms: Theory and Evidence', Small Business Economics, 6, 1994, pp. 327-347.
79. R. Rothwell & M. Dodgson, 'Technology-based SMEs: Their Role in Industrial and Economic Change', International Journal of Technology Management Special Publication on Small Firms and Innovation, 1993, pp. 8-22.
80. M. Dodgson & R. Rothwell, 'Technology Strategies in Small Firms', Journal of General Management, 17, 1, 1991, pp. 45-55.
81. Science Policy Research Unit, University of Sussex, UK.
82. Dodgson & Rothwell, op. cit., Ref. 70.
83. Ibid.
84. Garud & Nayyar, op. cit., Ref. 16.
85. It must be stressed that such a storehouse would need to be more dynamic than just another bureaucratic catalogue. Canada provides an interesting internet accessible example of such an effort. University and government technologies, from research concepts to market ready products, are listed in the National Technology Index. The complementary National Expertise Index provides an electronic network of researchers and technology transfer experts.
86. Of course, the dilemma with this policy would be that such explicit knowledge may then be available to foreign firms that have linkages to the nation. The nation could still benefit if the reactivation and synthesis was performed internally, or if some return was gained from the intellectual property through licensing for example. The view could also be taken that the foreign interest might also find the same knowledge elsewhere, so building longer term networks to that foreign entity via the transaction may still benefit the nation if, for example, the foreign organization returns to use the capabilities that originally produced the stored knowledge, in order to generate new knowledge.
87. FDI and foreign ownership can be viewed as a subsidy by the international partner of the nation's capability, as long as the local organization's skills and capabilities, in the form of key human resources, remain in the country. A key problem with this scenario, is that for small countries, the knowledge assets are sometimes moved back to the home base of the international partner. Thus retaining the human resource becomes an issue for policy. Policy that places restrictions on foreign investors, such as requiring local procurements of inputs, or a proportion of local management, which could be viewed as a national technological competence accumulation and learning policy, would be counter to the new global instrument, the Multi-lateral Agreement on Investment (MAI), that is currently under negotiation among OECD members. Whilst the main objections to the MAI are on environmental grounds (see, for example, B. Hileman, 'A Globalization Conundrum', Chemical & Engineering News, 20 April 1998, pp 45-48), it can also be viewed as potentially having a detrimental impact on a nation's ability to purposively build its innovation system through international linkages. However, a free market argument would suggest that regulation should be unnecessary if the small country inputs and skills are of a high enough standard that the foreign investor wants to use them, and potentially is actually entering the small nation because of them.
88. Gibbons et al., op. cit., Ref. 6.
89. Ibid.
90. Dodgson & Rothwell, op. cit., Ref. 70.
91. Ibid.
92. L. Evans, A. Grimes, B. Wilkinson & D. Teece, 'Economic Reform in New Zealand 1985-95: The Pursuit of Efficiency', Journal of Economic Literature, 34, 1996, pp. 1856-1902. See also J. Boston, J. Martin, J. Pallot & P. Walsh, Public Management: The New Zealand Model (Auckland, Oxford University Press, 1996).
93. L. Evans, A. Grimes, B. Wilkinson & D. Teece, 'Economic Reform in New Zealand 1985-95: The Pursuit of Efficiency', Journal of Economic Literature, 34, 1996, pp. 1856-1902. See also J. Boston, J. Martin, J. Pallot & P. Walsh, Public Management: The New Zealand Model (Auckland, Oxford University Press, 1996).
94. B. Walker, 'Reforming the Public Sector for Leaner Government and Improved Performance: The New Zealand Experience', Public Administration and Development, 16, 1996, pp. 353-375.
95. The order of these strategy elements has been changed to assist with the description of the development of the New Zealand system.
96. P. Winsley & L. Hammond, 'Policies for Transforming the Science and Innovation System in New Zealand: 1988-97', Prometheus, 15, 2, 1997, pp. 267-278.
97. Boston et al., op. cit., Ref. 82.
98. Ibid.
99. Ibid.
100. As with organizational strategy, this is not to say that the entire population agrees with the leadership and vision of the reform strategy, but it is definitely well understood and communicated.
101. For example, Evans et al., op. cit., Ref. 82; Boston et al., op. cit., Ref. 82; Walker, op. cit., Ref. 83.
102. For example, Evans et al., op. cit., Ref. 82; Boston et al., op. cit., Ref. 82; Walker, op. cit., Ref. 83.
103. For example, Evans et al., op. cit., Ref. 82; Boston et al., op. cit., Ref. 82; Walker, op. cit., Ref. 83.
104. Walker, op. cit., Ref. 83.
105. Price for the research is substantially negotiated after the selection so the market is not price driven. See P. Winsley, Research and Development as a Socially Efficient Investment (Wellington, FRST Discussion Paper No 4, 1996); Walker, op. cit., Ref. 83;
106. Price for the research is substantially negotiated after the selection so the market is not price driven. See P. Winsley, Research and Development as a Socially Efficient Investment (Wellington, FRST Discussion Paper No 4, 1996); Walker, op. cit., Ref. 83;
107. The Foresight Project, Building Tomorrow's Success: Guidelines for Thinking Beyond Today (Wellington, MoRST, 1998).
108. For further discussion of the New Zealand science reforms see B. Simpson & J. Craig, 'A Policy for Science Innovation: the New Zealand Experience', Science and Public Policy, 24, 2, 1997, pp. 70-78; M. Cartner & T. Bollinger, 'Science Policy Reforms: The New Zealand Experience', Social Studies of Science, 27, 5, 1997, pp. 775-803; Walker, op. cit., Ref. 83; Winsley & Hammond, op. cit., Ref. 85.
109. For further discussion of the New Zealand science reforms see B. Simpson & J. Craig, 'A Policy for Science Innovation: the New Zealand Experience', Science and Public Policy, 24, 2, 1997, pp. 70-78; M. Cartner & T. Bollinger, 'Science Policy Reforms: The New Zealand Experience', Social Studies of Science, 27, 5, 1997, pp. 775-803; Walker, op. cit., Ref. 83; Winsley & Hammond, op. cit., Ref. 85.
110. For further discussion of the New Zealand science reforms see B. Simpson & J. Craig, 'A Policy for Science Innovation: the New Zealand Experience', Science and Public Policy, 24, 2, 1997, pp. 70-78; M. Cartner & T. Bollinger, 'Science Policy Reforms: The New Zealand Experience', Social Studies of Science, 27, 5, 1997, pp. 775-803; Walker, op. cit., Ref. 83; Winsley & Hammond, op. cit., Ref. 85.
111. For further discussion of the New Zealand science reforms see B. Simpson & J. Craig, 'A Policy for Science Innovation: the New Zealand Experience', Science and Public Policy, 24, 2, 1997, pp. 70-78; M. Cartner & T. Bollinger, 'Science Policy Reforms: The New Zealand Experience', Social Studies of Science, 27, 5, 1997, pp. 775-803; Walker, op. cit., Ref. 83; Winsley & Hammond, op. cit., Ref. 85.
112. Simpson & Craig, op. cit., Ref. 94.
113. Walker, op. cit., Ref. 83.
114. P. Winsley, P. Couchman & D. Gilbertson, 'Future Development of New Zealand's Science and Technology System', Prometheus, 16, 1, 1998, pp. 57-68.
115. Walker, op. cit., Ref. 83.
116. Winsley, op. cit., Ref. 92.
117. Walker, op. cit., Ref. 83.
118. Winsley et al., op. cit., Ref. 97.
119. About 90% of New Zealand businesses have 10 employees or less, and less than 1% have more than 100 employees. G. Stockport & A. Kakabadse, 'New Zealand Government Policy Towards High-Technology Small Firms', in: R. Oakey (Ed.), New Technology-Based Firms in the 1990s Volume II (London, Paul Chapman, 1996), pp. 173-187.
120. F. Chesnais, 'Some Relationships Between Foreign Direct Investment, Technology, Trade and Competitiveness', in: J. Hagedoorn (Ed.), Technical Change and the World Economy: Convergence and Divergence in Technology Strategies (Aldershot, Edward Elgar, 1995), pp. 6-33.
121. I. Ffowcs Williams, 'Local Clusters and Local Export Growth', New Zealand Strategic Management, Summer 1997, pp. 24-30.
122. New Zealand's industrial base is broad but thin, which means in many sectors there has been just one firm in the market. Winsley et al., op. cit., Ref. 97.
123. Winsley et al., op. cit., Ref. 97.
124. For example, 1995 OECD statistics show that 59.1% of the population reach upper secondary education (OECD mean = 59.7%) and the TIMSS mathematics achievement score is 499 (OECD average = 537). Source OCED Indicators, Paris, 1997.
125. H. Fancy, 'The Importance of Skills', Proceedings of the Conference on the Human Dimension of Science and Technology (Wellington, The Royal Society of New Zealand, 1997), Miscellaneous Series 47, pp. 21-23.
126. I. Pool, F. Edwards & P. Walker, 'The Human Dimension: Setting the Parameters', Proceedings of the Conference on the Human Dimension of Science and Technology (Wellington, The Royal Society of New Zealand, 1997), Miscellaneous Series 47, pp. 17-19.
127. A recent survey of New Zealand researchers found a disturbing trend in that nearly half would not recommend a scientific or engineering degree in New Zealand. J. Sommer & D. Sommer, Profiles: A Survey of New Zealand Scientists and Technologists (Wellington, The Royal Society of New Zealand, 1997), Miscellaneous Series 43.
128. The Foresight Project, op. cit., Ref. 93.
129. See also the Foresight website, http://www.morst.govt.nz/ foresight/
130. The public funds reflect, to some extent, a linear view of innovation, with a basic research Marsden fund, the PGSF, and Technology New Zealand aimed at industry which includes research student placements, and Maori and post-doctoral fellowships.
131. FRST, Technological Learning and Knowledge Application Review Report (Wellington, FRST, 1998). Based on 500 interviews and 666 mail survey responses of 233 technological learning groups.
132. P. Winsley, A Study of Technological Innovation in New Zealand (Wellington, Victoria University of Wellington, unpublished PhD Thesis, 1997).
133. This centrality is equally as unlikely to be understood by the majority of the private sector, which tends to remain focused on cost reduction and efficiency and quality improvement.
134. Winsley et al., op. cit., Ref. 97.
135. At an operational level flexibility is greatest in times of crises when the system enables the immediate resourcing of emergency research. Recent crises include algal blooms and pest invasions, which threatened important export products.
136. P. Winsley, Research and Development as a Socially Efficient Investment (Wellington, Foundation for Research, Science & Technology, 1996), Discussion Paper No 4.
137. P. Enderwick & M. Akoorie, Fast Forward: New Zealand Business in World Markets (Auckland, Longman Paul, 1996).
138. Ibid.
139. Ibid.
140. Winsley et al., op. cit., Ref. 97.
141. For example, for over twenty years New Zealand has educated students through the Malaysian Colombo Plan and the relationships forged are very evident in both the range and depth of the interaction with that country (Fancy, op. cit., Ref. 108). Such a connection between education, trade and FDI emphasizes, once again, the interconnectedness between many aspects of an economy and a national innovation system.
142. I. Ffowcs Williams, 'Hard and Soft Networks: Helping Firms Co-operate for Export Growth', New Zealand Strategic Management, Summer, 1996, pp. 30-36.
143. Winsley et al., op. cit., Ref. 97.
144. S. Davenport, J. Davies & A. Miller, 'Framing of International Research Alliances: Influence on Strategy, paper presented to the R&D Management Conference, Avila, 1998.
145. Lundvall, op. cit., Ref. 49.
146. Gibbons et al., op. cit., Ref 6.
147. F. Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York, The Free Press, 1995).
148. Sharp, op. cit., Ref. 55.
149. J. Nahapiet & S. Goshal, 'Social Capital, Intellectual Capital and the Organizational Advantage', Academy of Management Review, 23, 2, 1998, pp. 242-266; G. Walker, B. Kogut & W. Shan, 'Social Capital, Structural Holes and the Formation of an Industry Network', Organization Science, 8, 2, 1997, pp. 109-125; Fukuyama, op. cit., Ref. 129.
150. J. Nahapiet & S. Goshal, 'Social Capital, Intellectual Capital and the Organizational Advantage', Academy of Management Review, 23, 2, 1998, pp. 242-266; G. Walker, B. Kogut & W. Shan, 'Social Capital, Structural Holes and the Formation of an Industry Network', Organization Science, 8, 2, 1997, pp. 109-125; Fukuyama, op. cit., Ref. 129.
151. J. Nahapiet & S. Goshal, 'Social Capital, Intellectual Capital and the Organizational Advantage', Academy of Management Review, 23, 2, 1998, pp. 242-266; G. Walker, B. Kogut & W. Shan, 'Social Capital, Structural Holes and the Formation of an Industry Network', Organization Science, 8, 2, 1997, pp. 109-125; Fukuyama, op. cit., Ref. 129.
152. Ibid.
153. B. Kogut and U. Zander, 'What do Firms Do? Coordination, Identity and Learning', Organization Science, 7, 1996, pp. 502-518.
154. Nahapiet & Goshal, op. cit., Ref. 131.
155. For example, the breakdown of communication between public departments as a consequence of the reforms can be seen as a loss of social capital in the public sector. A similar argument has been posited for recent breaches of ethical integrity in New Zealand's public service. R. Gregory, 'Social Capital Theory and Administrative Reform: Maintaining Ethical Probity in Public Service', Public Administration Review, forthcoming.
156. Chesnais, op. cit., Ref. 103.