|• the factors influencing innovation;|
|• the distributed form of modern innovation processes within a division of labour between multiple kinds of knowledge and multiple organisational sources of knowledge; and|
|• the elements of workable innovation policies.|
The importance of this topic for the achievement of international competitiveness and industrial development should not be underestimated. Competition and development are knowledge-driven processes and the conditions and contexts in which knowledge is accumulated and applied in the modern world are changing rapidly.
We must be clear from the outset, that, as a general rule, the STI policy of developing economies should not be directed at reaching the world STI frontier. Rather, the central concern should be with absorption and adaptation of established practice to suite local resource endowments and market prospects. As we will see these are non-trivial tasks. Even imitation and adaptation far from the technological frontier can require major investments in organisations and capabilities.
In addressing this topic we must face a number of difficulties. The first is the vast range of economic performance in developing economies. In terms of GDP per head, or the scale and composition of economic activity, or the relative contributions of the public and private sectors, or the levels of education in general and in relation to science and technology in particular, or in relation to the