Lecture 6 (Part-1) Innovation Systems 101
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The document discusses Freeman's neo-Schumpeterian contributions from a global south perspective, emphasizing systemic innovation, national systems of innovation (NSI), and science, technology, and innovation (STI) policy. It analyzes the historical and political context of technological paradigms, particularly in relation to 5G technology in countries like India and Brazil. Additionally, it highlights the significance of institutional factors and international competition in shaping innovation trajectories and policy outcomes.
Lecture 6 (Part-1) Innovation Systems 101
- 1. Long-waves, NSI & STI policy: Freeman’s “broadening” contribution from the Global South Manuel Gonzalo https://www.researchgate.net/profile/Manuel_Gonzalo2 Prodem-IDEI-UNGS / UNDEC / Redesist-IE-UFRJ Globelics - Lalics
- 2. Reading Freeman Let’s think in three of the most relevant neo-schumpeterian contributions…: 1. Technological systems / Technological paradigms / Techno-economic paradigms 2. NSI 3. Systemic STI policy
- 3. Structure of the presentation 1. Reading Freeman • Long-waves • NSI • STI policy 2. Reading Freeman from the south • Dialoguing with Freeman from Latin America • A case for the Global South: The emergence of 5G in India and Brazil 3. Contemporary/future neoschumpeterian “blends”
- 4. The long-waves debate re-emergence during the 70s / 80s: framing Freeman (and the SPRU) With the crisis of Fordism, the emergence of the micro-processor and the Japanese-Toyotist industrial challenge, the long-waves growth debate come back! 1. Mostly econometric works (focused on the duration/periodicity of the cycles): • Kondratiev long cycles on production and relative prices • Kuznets cycles emphasizing infrastructure investment 2. “Trend & Cycles” (empirical, historical & theoretical oriented) • Schumpeter’s clusters of radical innovation • Keynes, Kaldor, Kalecki: growth dynamic by lags between demand and investments / accelerators & multipliers • Freeman / Dosi / Carlota: broadening the schumpeterian cycles • Minsky financial long-wave super-cycle 3. Inter-State competition (geopolitical) approaches: Braudel, Wallerstein, Arrighi & the World System
- 5. Long-waves a la Freeman: from technological systems to tecno-economic paradigms • 1970s/1980s: discussion with Rosenberg from historical perspective, Mench depression-invention & Mandel from Marxism / dialogue with the keynesian on unemployment • Freeman’s main line of research: broadening/correcting Schumpeter’s “cluster of innovation” / Kondratiev long-cycles and discussing with the narrow R&D focus of the endogenous growth theory • Methodological level: Reasoned history (Schumpeter) & “long-term way of thinking” (Bernal & Landes) • Systemic innovation as a conceptual & empirical agenda • Supply side innovation > demand side innovation > systemic innovation (SAPHO Project, Schmookler, etc.) • Schumpeter I > Schumpeter II > Schumpeter III? • The institutional level as a space of conflict • Freeman et al (1982) category: “New technological systems” (same year of Dosi’s technological paradigms!) • Relevance not only of the cluster of innovation, but on diffusion! “bandwagon effect”! • Simultaneous growth of different interrelated industries: structural change! • Where does the innovation comes from? Standards, institutional and legal settings, regulations, policies, etc. (NSI) • It can be stable or with tensions: relevance of political struggle and institutional mediation • “Autonomous investment” > Keynes • Carlota / Dosi keep broadening and synthesizing • “Key factors” / “common sense” / new best practice / infrastructure investment / metaparadigm • Demand-side? Autonomous expenditures? Green growth? Mazzucato, etc. • Divergence: inequal distribution of technology > leading countries and latecomers
- 6. Freeman & Perez (1988) / Freeman & Louçã (2001)
- 7. Freeman on NSIs: the List influence! • NSI a la List: infrastructure + mental + material capital (but not only “emboidied technical change”) / versus comparative advantage (the OECD 1982’s paper, published at Globelics Rio 2003) • Relevance of non-price factors of competitiveness (Kaldor) • There are sectors, but there are Nations! Strong technical leader countries (not possible to adjust by exchange rate industrial policy…) • NSI: national level institutions for capabilities and innovation creation and diffusion (Lundvall, Johnson…) • Diffusion (different works/books) • Schumpeterian competition (1997 conference) • Networks of innovation (1991 paper) • Freeman on the Japanese NSI (then Lastres PhD Thesis): reasoned history on NSI (Freeman 1995) • Versus Techno-globalism… but methodological nationalism? (1995 paper) • Tensions: Multinational firms, globalization (dialogue with Chesnais) / then NSI & GVC (Lundvall) • Different levels: Continental, national and sub-national innovation systems (2002) • NSI in comparative perspective: British, Japan, URSS, Korea, Latin America • Interstate competition: recognizing the relevance of military and defense sector for NSI
- 8. Broad & systemic understandying of STI Policy • Potential and limits of STI policy: Freeman was an illuminist, he believe in science, but he recognized that there are several economic/social issues that are not solved with STI policy! • STI policy (as development) is influenced and interacts with other policies: fiscal, industrial, financing, trade policies & so on • “Coupling mechanisms”: the institutional (and sectorial) challenge of linkages! • Much more tan R&D: institutional, organizational and social factors of “competitiveness”! • Not only of invention & innovation but also diffusion policies (even more for the Global South)! • Role and insertion of multinational enterprises • Infant and teenage industries: • New firms support in the early cycles - Schumpeter I • Intrapreneurship & M&A in Schumpeter II • Role & type of insertion of multinational enterprises: diffusion • Introducing missions / societal challenges
- 9. Summing up: Freeman’s “broadening” mission/contribution • From the narrow/lineal R&D focus (endogenous growth theory) > historical, institutional and conflictive understanding of innovation, stating initial dialogues with the keynesean literature on growth (followed by Carlota and Dosi) • From the science push / demand pull STI policy debate > broad & systemic approach to STI policy • From mere cliometrics/econometric approaches > reasoned history • From Schumpeter I & II > Schumpeter III
- 10. Reading Freeman… from the South
- 11. Dialoguing with Freeman from Latin America • Argentina: Freeman dialogues and friendship with Amílcar Herrera, Jorge Katz in Argentina: the ITDT seminar in 1969 /Chudnosky, Yoguel, López • Brazil: The UNICAMP books and the seminar of 1982 / the Globelics (2003) article of 1982 / Lastres PhD Thesis on Japan / IE-UFRJ • Latin America: several papers specifically devoted on Freeman: Arocena and Sutz (2015), Lastres and Cassiolato (2017), Velho (2010), Lalics Works and seminars, etc. • On long-waves: Prebisch-Furtado center - periphery (Caio Prado, Aldo Ferrer, Schwarzer) / Ignacio Rangel “techno-economic paradigms” and dual modes of development / Carlota Pérez / Conceicao Tavares on trend and cycles • On NSI: the broad line of research of Redesist, particularly deepening on the BRICS NSIs and technological frontiers / Sutz & Dutrenit on societal challenges • STI policy: Amílcar Herrera on explicit and implicit policies / Sabato’s triangle as an antecedent of the systemic approach / Varsavsky stiles of development / Not only “embodied technical change” > Modernization > Katz!
- 12. A case for the Global South: The emergence of 5G in India and Brazil • 5G as a new phase of the IT techno-economic paradigm? • USA and China in a global dispute mainly some “key factors”: 1) infrastructure (optical fiber), 2) semiconductors and 3) telecom equipment • As it is a global dispute both China and the USA are looking to penetrate in the Global South 5G emergence: technological and national security implications • The political economy of 5G emergence in the Global South • India: national champions (Jio Reliance) in Alliance with the US big tech. • Brazil: Chinese and the agribusiness groups vs. the US and Bolsonaro’s family • Which is the role of the State and the NSI? How to achieve a peripheral development with development of local capabilities (autonomy)? Is this possible? Or we should opt for peripheral realism? Which type of policies?
- 13. The contemporary/future neoschumpeterian “blends” • Reasoned history: which blends? where to publish…? • NSI & geopolitics… beyond methodological nationalism: supranational, national and regional IS - USA, China & the Global South • Demand-led growth & neo-schumpeterian dialogue: from autonomous investment to autonomous expenditures (austerity as an enemy even for creative destruction) • NSI & financing! Developing financing, financing missions, State-owned banking… • Institutions as collective muscle for growth (not naive neither west-biased approaches!) • Global South dialogue • Role of multinationals, multilateral organisms & capital flows • Focus on external restriction / foreign exchange limitations • Mission oriented policy: A mix of high tech with diffusion • South – South cooperation! • Diasporas & STI policy • The relation between State policymaking & NSI: Political economy of STI and NSI
- 14. Thank you! Manuel Gonzalo gonzalo.manolo@Gmail.com https://www.researchgate.net/profile/Manuel_Gonzalo2 Prodem-IDEI-UNGS / UNDEC / Redesist-IE-UFRJ Globelics - Lalics