Mechanisms and Strategies of Innovation System Development

This chapter delves into the mechanisms and strategies for developing innovation systems, with a particular focus on Georgia. It begins by highlighting the importance of innovations in modern economic development and the need for countries to build compatible innovation systems. The text then examines Georgia's efforts over the past two decades to develop its innovation system, noting the legal and institutional improvements made but also the lack of significant results. The analysis includes an assessment of Georgia's position in global innovation rankings, the structure and dynamics of GDP, and the trends in foreign direct investments. The chapter identifies key factors hindering the formation and functioning of Georgia's innovation system and proposes mechanisms for its development. These mechanisms include strengthening international ranking factors, improving macroeconomic indicators, enhancing the investment environment, perfecting the regulatory framework, developing innovation infrastructure, and fostering relations between the state, business, and science. The strategic directions for the development of Georgia's innovation system are also outlined, emphasizing innovative approaches to natural resource utilization, the use of modern technologies in agriculture, state support for innovative business projects, and the protection of intellectual property. The chapter concludes by stressing the need for a reasonable state innovation policy that outlines both mechanisms and strategies for long-term goals and complex measures.