Essay About National Innovation System And Us National Innovation System

Us National Innovation System – Summary
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Assignment 2Prepared by        : Ahmed Mohamed Abdel Maksoud ID: S1400710Professor        : Raghda El EbrashiThe definition a National innovation system can be described as “the network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies”To describe the factors affecting the NIS we can demonstrate it as what is called National innovation success[pic 1]SummaryBusiness factors:High level Executives: strong it infrastructure and adoption;, support go risk taking businessBoarder FactorsPublic acceptance, and culture acceptance and tolerance of failureTax and trade regulatory environmentGovernment protectionSupport new entrantTransparencyConvenient regulations level for economy and marketInnovation Policy systeminnovation support for infrastructureReshaping Tax code to support innovation corporatesMAJOR DEVELOPMENT STAGES OF THE U.S. NISThe US developed since the independence being part of the and innovate because of the steel-based industry and major companies became leaders like GM and Kodak.The green field helped the US to implement policies to control and help industries to scale more successful unlike other countries like German and UK. Not only the industry green field but also culture was an advantage.internal development was an advantage as creating an infrastructure to support different industriesPatent system embedded in the constitutionMotivation for firms to continue innovationWWI developed a need for more innovation, Centralized R&D, Allies after WWII helped to secure the power threadsNo focus on promotion for innovation till 1963 to use federal support to focus on industries related to defense and space to tackle the Soviet Union cold war. And find was raised to universities. The extension from universities focus to small and mid-size companies. Congress was not always supporting such initiatives. Moreover they were not guided by a vision and mission.Starting 70th the system started to be matured to face the competition from Japan and Germany followed by a support from congress.In 1992, Japan competitiveness was reduced as a threadWith the microprocessors and web 2.0 policy makers recognized the importance of IT to be focus of development and growth.IT Evolvement and the USCongress Initiatives toward the end of Bush II building in Clintons internet governed regulation :Deregulating broadband communicationFree up Radio spectrumOnline privacye-GovernanceAlthough the IT was evolving the US industrial competitiveness was not with a decent decline of 100 M USD in a decade,  which lead – along with other countries competition like china – to more attention that was given during Obama administration by initiating number of initiatives to overcome the situation, also congress introduced a variety of measure. Unfortunately efforts was extremely limited due to the political situation, budget limitation and unwillingness to add individual taxes or cut any entitlement.,Elements of the USNISElementFactorsSubjectDescriptionBusiness EnvironmentMarket and firms structure and behaviorManagerial TalentUS is a world leader in this aspectComes from environmental factors that forces the need for better managementIn 1950 US developed a discipline of management and perfected by time.Time Horizon and Risk Appetite of FirmsThe force to think short term reduced the focus on long term which resulted on bad innovation planning, low investment return , Etc.ICT AdoptionUS firms invest above other firms in other countries; they are also get more benefits from the IT investment.Business Financing SystemVenture and Risk CapitalExistence of venture capital since 1946It is not supporting finance only but also managerialPrivate funding is availableSone state government initiatives to venture fundingFirm Finance (Debt and Equity)Many funding options for firms from private sector or government financing, both are not targeted for innovation Cultural FactorsNature of Customer DemandDemanding consumer nature, pushing the companies to innovate and introduce new productsEagerness for early adoptionRisk Taking and Entrepreneurshipdeep-seated interest in tinkering, inventing, and making things betterAttitudes Toward Science and TechnologyHistorical demand to follow science but today this is challenging due to the anti-technology threads like job loss fear.Collaborative CultureThere is a group collaboration to drive innovation maintaining the intellectual property rights so people and institutes are not afraid to talk.Time Horizon and Willingness to Invest in the FutureAlong the US history this is always supported and maybe depredated on aggressively on 2000-2010 period but it is still getting focus considering the political challenge to force more direct or indirect support.Trade, Tax, and Regulatory EnvironmentRegulatory EnvironmentIndustry Structure and the Nature of CompetitionCustomer focused.Less barrier to entry for less regulated industries and in contrary to high regulated industries.Regulatory System for EntrepreneurshipEasy for new entrant, not only when establish a new business but also in downsizing the business or even close it.Role and Form of RegulationThis subjects limits innovation due to the demand for more regulations and the cost and budget reduction for regulating agencies.Transparency and Rule of LawRole to apply and monitor regulations are strengthen the US innovationTax, Trade and Economic PolicyMacroeconomic EnvironmentOn a monetary policy to maintain strong US dollar position. Which is good for consumers but hurts producers.Tax PolicyNot favor for specific industry, relatively high compared to other nations, tax credit relatively anemicTrade PolicyRelatively anemicUnder fundingUnder promoting effortFocus on customer benefitNew trade agreementsInteraction with other nations to follow same WTC rolesIntellectual PropertyCopyrights and patents, with trademarks are protected.Challenges still exist about the level of protection needed.StandardsNot particular industry standard but it follows the customer choice.Standards is related to products, processes, services, systems, or personnel.Working on global levelInnovation Policy EnvironmentResearch and TechnologySupport for Research in Universities and Research Labs/Research InstitutesLess sophisticated than other nations as it is considered as inappropriate intervention to the economy.Support both mission critical and basic researchwas very positive in 60th (Cold ware and moon race)1990 -2000 doubled for health care but not overall when we look on GDPanother increase in around 2010 then fallen down with average 10% because of fiscal challenges facing governmentsFederal LabsAround 100 lab supported mainly by the department of energy, health and defense.Us benefited from this focus by timeUniversity ResearchLargely unrelated to agency mission goals, university R&D VS GDP is behind many nations and needs more focus.Technology Transfer SystemsTechnology transfer from universities to federal labs to commercial marketplace.In 1980 policies started to develop to better commercialize researchNational institute of standard and technology is the only focus in regard to this matter. Support for Research in BusinessSupport was focusing on core missionOn firm level tax credit support was developed.Federal government support specific industries like semiconductorsUS spend significantly less than other nations like Korea 89 time and German 43 times and japan 15 times.Systems of Knowledge FlowsInnovation Clusterslittle explicit role for federal governmentexplicit clustering policy was developed mainly by sub-state and province of stateIndustry Collaboration Systems (with academia and research institutes)developed and successful industry-research institute collaboration systemAcquiring Foreign Technology and Exporting U.S. TechnologyChanged from leading technology development to acquiring foreign technology.Welcoming foreign technologies helped us to understand Japanese auto manufacturing technologiesExporting is also a key but it is always related to military activities and demand to reduce this restriction is pressuring Technology Diffusion and AdoptionModest systemSupport activities like research, country wide initiatives, etcHuman Capital SystemEducation/Training (K-12)the US has a higher share of students in private schools than most other nations. Compared to many other nations, the performance of U.S. K-12 students on internationally comparable standardized tests like PISA and TIMMS is generally lacking. Some argue that the poor performance reflects a lack of national curriculum standards, while others argue that it is more structural in nature increased diversity of kinds of schools. Higher share of students in the United States from socio-economically disadvantaged families.Higher EducationOnline study is a trend.Tuition rates have increased significantly as public funding has been cut.US has fallen behind many other nations in higher education enrollment rates.For private schools, some students can afford high tuitions while others receive financial aid from the universities.The American higher education system is diverse and distributed in nature.In addition, there is little national or state effort to guide students in their choice of what they study.Skill/Technical TrainingIn the United States, skills training is largely seen as a private sector responsibility. As such, overall private sector investment in skills training has declined by about one-third as a share of GDP in the last decade. To the extent that there is a federal role (through the Department of Labor), it is focused largely on helping disadvantaged individuals obtain skills. However, the National Skill Standards Act of 1994 created a National Skill Standards Board (NSSB) responsible for supporting voluntary partnerships in each economic sector that would establish industry defined national standards leading to industry-recognized, nationally portable certifications. The vision was that each industry would define and validate national standards for the skills it was seeking and credential individuals against those skills.Immigration PolicyAt least seven studies have examined the role of immigrants in launching new companies in the United States, and all conclude that immigrants are key actors in this process, creating from 15 percent to 26 percent of new companies in the U.S. high-tech sector over the past two decades. Some U.S. states have seen even greater beneficiaries: nearly 40 percent of the engineering and technology firms founded in the U.S. states of California and New Jersey between 1995 and 2005 were founded by foreign born-immigrants. The United States has several systems to encourage high-skill immigration, including a policy to provide permanent residence to some STEM workers and a temporary employer sponsored work visa system.National innovation systems are evolutionary, not static. For the U.S. innovation system it appears that the direction of change is toward relative worsening, especially when compared to some other national systems whose governments are putting in place a suite of policies designed to win in the global race for innovation advantage.Clearly the United States appears to have sustainable strengths in a number of areas, including factors such as managerial talent, enterprise use of ICT, and business cultural factors such as demanding customers and a collaborative culture. But to date, Congress has been preoccupied with matters other than enhancing U.S. innovation and competitiveness, and even if they did focus their attention here, the overall budget impasse (Democrats unwilling to cut entitlement spending, Republicans unwilling to raise taxes on individuals) suggests that little of substance will happen in these areas. Finally, while corporate tax reform is an area where some progress is possible, it is at least as likely that nothing major will happen or even that changes will be detrimental for innovation and competitiveness. In summary, as nations compete to win the global innovation race, some will sprint out ahead, others will remain stuck in the middle of the pack, and still others will struggle to get out of the starting gate.