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Enhancing the Innovative Performance of Firms

19

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II.CREATING SUPPORTIVE FRAMEWORK CONDITIONS FOR ENHANCING THE INNOVATIVE CAPACITY OF FIRMS

Executive Summary

Public policy has a role in establishing a business, social and technology environment as supportive as possible for businesses to innovate and to raise awareness in the corporate sector of what other parts of the system offer by way of support to stimulate the market for innovative goods.

The influence of the business environment is particularly important in encouraging innovation. This includes a transparent, accessible and simply organized business infrastructure that facilitates business formation and operation and allows those in universities to create companies for the exploitation of innovation. The business environment must be conducive to investment in R&D and should not overburden business with regulations.

Pursuing policies to develop a culture of innovation and to increase the demand for innovation requires well functioning markets for technology products. Public support to market development represents an important strategy in trying to build capacity in a region.

Innovation activity has a regional aspect as an important part of the innovation capacity is provided by a region’s skills base, including adequate supply of the right skills and the cost of these skills. Addressing these issues requires cooperation between local authorities and employers. This process helps to identify skills gaps in the regions, which can be filled through the provision of relevant training or by targeted investments related to these needs.

One of several strategies for building a skills base is to provide external direct advice, mentoring and coaching to companies. The creation of an innovation advisory service encouraging companies to develop the necessary internal structures supporting innovation can be instrumental in promoting an innovation network across the region.

A related policy is the support to the selective development of courses in universities aimed at meeting specific local needs.

Policy interventions aimed at strengthening the operational units and linkages that make up the NIS also support firms’ innovation activities. Examples include public investment in knowledge creation and its management, measures seeking to increase demand for innovation, public support for the links between the operational units in the innovation process as well as establishing specific incentives for companies to cooperate in their innovative efforts.

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