Creating National Innovation Through Information Diffusion

National innovation is an all growth proposition that seeks to make maximum market gains by exporting relevant products to excited customers. Charging forward with a barrage of new products and services creates a zeitgeist of growth that is not easy to match. The researchers Change and Cui (2013) analyzed the factors that help encourage higher levels of international competition that led to GNP growth and development. 

Countries rely on informal and formal innovation networks to turn good ideas into marketable growth. National innovation systems refer to the innovative network within a country whereby departments and agencies promote innovation through the economic, scientific, and technological organizations (Zheng, 2006). Each of these organizations uses the knowledge of other sectors to enhance their own positions. 

Often countries use more of a closed innovation system. Each company works within a silo and doesn’t share information. Even though great ideas do come forward it is often much slower than what would be realized through higher levels of mutual development. Those countries that can generate more ideas, better products, and lower lead times can dominate the market. 

National innovation can be improved by applying scientific and technical knowledge to the development processing and exportation of products (Wang and Zhang, 2002). As universities develop new methods and people with practical experience apply that knowledge in new ways product enhancement is realized. The transference and application of information is an important criterion in the creative process.

Even though in a knowledge economy the markets transfer information across borders economic hubs should be draws for such information.  Let us assume that a new process for product development is used in one country. It will not take long before that process is copied by others as its benefits become apparent to competitors. Global hubs should be drawing in this knowledge to enhance their local hubs and operations. 

The authors found that technology transfer and diffusion are important elements in growth.  All hubs must draw in, generate and then diffuse information for the greatest possible growth. This occur most often when international trade, foreign investment, and cross border R&D processes are developed. Each hub brings in resources and information and then uses this information to enhance their competitive position.   

Chang, Y. & Cui, X. (2013). The Interactive Relationship of Transnational Technology Transfer & Diffusion and National Innovation Capability. International Journal of Business and Management, 8 (21).

Wang, Z. & Zhang, W. (2002). Foreign direct investment, technology licensing and technology innovation. Economic Research, 3, 69–75.

Zheng, X. (2006). Research Review on National Innovation System. Scientific Management Research, 24(4), 1–5.