Innovation Systems

Innovation Systems and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Innovation Systems: The network of public- and private-sector institutions that initiate or import, modify, and diffuse new technology in a country .In current OECD discussions, the term encompasses ways in which a country organizes its systems of education, scientific research, and technological diffusion, and –in conjunction with macroeconomic and competition policies –their combined impact on the rate of innovation. Associated with the term is the concept that “technological trajectories” shaped by countries' differing innovation systems may set the stage for future trade conflict or collaboration.