Innovation Policy in BRICS Helena M M Lastres Office for local production and innovation systems and regional development International Seminar on Innovation and Development under Globalization: BRICS Experience Trivandrum, August 2009

Problems of definition and innovation and innovation system 1.Lack of precision, controversy and conservatism in the international literature Ex. For about 40 years we know that –‘Innovation is much more than R&D’. However, R&D continues to be the most used indicator for measuring ST&I efforts internationally –Technology change derives nor only neither mainly from R&D and technology imports and their spillovers (linkages). However, these issues remain at the core of less developed countries’ policies Importance of the approach on system of innovation which focus on different sources of innovation deriving from interactions between firms and also with other economic, social and political actors that depend on each other to produce goods and services should not ignore the role of indigenous knowledge and technology (Scerri, 2009 and Liu, 2009)

Problems of definition and innovation and innovation system 2. Predominance of very narrow approaches Ex. Bias towards radical innovations deriving from advances in the scientific frontier and occurring only in high-tech sectors, and often as a result of R&D performed by big firms operating in DCs (correlation with patents) Concepts are not neutral. They derive from and reflect specific points of view and policy options Most innovation concepts are limited to few economic activities, actors and regions and are used in a way that only reinforces imbalances Innovation policies can also contribute to reduce regional and social inequalities and exclusion (Scerri, 2009 and Liu, 2009). Stress on gender and race inequalities and on the importance of addressing primary and secondary education in SA

Problems of definition and innovation and innovation system 2. Predominance of very narrow, outdated and rigid approaches Ex. Confusion between NSI and national S&T system and between LIPSs and cluster As the notion of cluster automatically emphasizes structured and specialized agglomerations; its use leaves aside others that may also require both research attention and policy support. The understanding and the promotion of emerging and less structured systems can be very important in all countries. Research effort and policies targeting industrial and technological development cannot ignore these cases, particularly in LDCs The role of researches in understanding and making explicit that some concepts can exclude by definition from the policy agenda entire regions as well as social and economic segments

Problems of definition and innovation and innovation system 3. Trend to use de–contextualized concepts, indicators and analytical and policy models developed to a specific context without the required adaptation and to blame and punish local conditions not to conform to imported and inappropriate models Ex. Concepts as looking glasses. If one has a model of a SI in mind and looks for the same features, elements and dynamics in a different context, perhaps she/he will conclude that there is no SI there and will fail to perceive and understand local conditions The discussion about the creation of NSIs and the recognition of the specific characteristics of different contexts. The fragment and disarticulated system in SA and the alerts about its erosion as well the restrictions imposed by the macroeconomic context (Scerri, 2009) Context matters both in terms of understanding and promoting innovation

Problems of definition and innovation and innovation system ‘History and specific territorial conditions are essential to explain how production and innovation capabilities are acquired, used and further developed. Analytical models, taxonomies and policy prescriptions that disregard these parameters put their usefulness seriously in risk’ (Lastres and Cassiolato, Globelics 2005)

Problems of definition and innovation and innovation system Importance of the capacity to select and use contextualized concepts, indicators and analytical and policy models capable of addressing the challenges and opportunities of each context given their geopolitical, institutional, scientific, technological, economic, financial, social, cultural and environmental dimensions that associate and articulate these dimensions In an inclusive way, by helping to diminish inequalities, instead of reinforcing them

Conclusions The concept of national and local innovation and production systems offers significant advantages and represents a relevant unit of analysis for BRICSs. Main challenges involved in this effort still relate to the difficulty to work with new concepts, and particularly those aiming at capturing and evaluating creation, use and diffusion of innovation and production capabilities in situations of high levels of inequality and informality. As knowledge results from interactive learning processes and pragmatic use has an important learning dimension, we expect that the analysis of BRICSs´ innovation systems will bring new light about both this concept and the reality of the five countries and