Innovation is one of the key drivers of growth in any modern economy. There are a variety of ways in which innovation can be fostered, and this paper explores four categories of Innovation Systems-National (NIS), Local (LIS) or clusters, Regional (RIS), situated spatially between NISs and clusters, and Corporate (CIS). The raisons d’etre of the Innovation Systems, their strategic purposes, operational principles, and the conditions under which they work best, are studied. The paper concludes with an exposition of the contrasts and complementarities among the Systems, and by applying the framework to a particular country whose innovation performance appears in need of considerable improvement.
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