The document discusses innovation and national innovation systems. It defines innovation as the implementation of new products, processes, marketing methods, or organizational methods. Innovation requires dissemination and use to have an impact. A national innovation system consists of institutions in the public and private sectors that initiate, import, modify and diffuse new technologies. It is a set of interconnected institutions that create, store and transfer knowledge to define new technologies. Policy needs to address knowledge supply and demand, interactions between institutions, and firms' ability to learn and acquire technology.
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