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In the final Chapter of Part One Clarke, Chelliah and Pattinson offer a comparative survey of the contrasting innovation systems of the Asia Pacific. While Asian economies have achieved rapid industrial progress, as they reach the global technological frontier they need to develop new institutional capabilities for sustaining international competitiveness. Foundational institutions including education, research, law and finance require coordination around coherent national innovation systems to sustain commitment to innovative products and processes. Technological innovation is more likely to succeed “when the elements of the broader environment surrounding firm’s activities are well articulated into a system, than in situations where each element works largely isolation… The overall innovation performance of an economy depends not so much on how specific formal institutions (firms, research institutes, universities) perform, but on how they interact with each other as elements of a collective system of knowledge creation and use, and on their interplay with social institutions (such as value, norms and legal frameworks)” (Dodgson in Elgar companion to neo-Schumpeterian economics. Edward Elgar Publishing, Cheltenham, U.K, pp. 193–200, 2007: 592). The national innovation system essentially facilitates how knowledge is generated and accumulated in the economy to serve as the catalyst and fuel for innovation (Yim and Nath in Science Technology Society 10, 2005).
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