Lessons from Korea , Switzerland and Norway : Improvement in innovation management in Iran

Article history: Received May 12, 2013 Received in revised format 25 June 2013 Accepted 8 August 2013 Available online August 12 2013 This article is devoted to the study of strategic issues for modification of the national innovation system of Iran. In recent years, National Innovation System is accepted as a conceptual framework and analytical instrument for countries’ innovation activities by the international organizations such as Organization for Economic Cooperation and Development, United Nations Conference on Trade and Development and Euro stat. The main purpose of this study is to find solutions modification of the national system of Iran. The subject of the research is the international experience of development of national innovation systems, peculiarities of innovation systems in countries with developed and emerging markets, as well as systems of support and management of national innovation systems in Iran and abroad. The results of this study may be useful for students, managers in public and private sector, government officials, researchers, economists and all those interested in financial and economic issues. © 2013 Growing Science Ltd. All rights reserved.


Introduction
Innovation is a powerful force for sustainable economic growth.Innovation is relatively linked to economic growth and improved productivity.Improving the conceptual and empirical links between innovation and economic performance is the primary objective of innovation policy.In recent years, the national innovation system (NIS) is taken as a conceptual framework and analytical tools for innovation activities of international organizations and commissions, such as the Organization for Economic Cooperation and Development (OECD), UNCTAD and the Euro-Stat.This research study concentrates on the effective design and implementation of a national innovation system.It describes that the concept of sectoral innovation system is a good tool for the creation of an effective national innovation system, since it can effectively create a variety of regional innovation systems in various regions.Based on this theoretical overview, this study will analyze the Iranian sectoral innovation system in terms of display innovation actors.
Researcher will provide strategic recommendations based on the experience and success of some selected countries.These recommendations will include a new institutional mapping for Iran, and macro-policy changes on the basis of the SWOT survey and analysis.The National Innovation System (NIS) of the flow of technology and information among people, enterprises and institutions, are the keys to the innovation process at the national level.According to the theory of the innovation system (Giger & Trojer, 2007), innovation and technology development are the results of complex interactions between the participants in the system, which includes enterprises, universities and public research institutes (Fagerberg, 2004).National innovation system has been defined as follows: • "The network of organizations in the public and private sectors whose activities and interactions initiate, import, modify and spread of new technologies" (Freeman, 1988).
• "elements and relationships which interact in the production, distribution and use of new and economically useful, knowledge ... and are either located in or rooted in the borders of the nation state" (Lundval & Johnson, 1994).
• "National organizations, their incentive structures and their competencies, that determine the speed and direction of technological learning (or the volume and composition of the changes in the business) in the country" (Patel & Pavit, 1994).
• "It's a lot of institutions that collectively and individually contribute to the development and dissemination of new technologies and which provides the framework within which governments form and implement policies to influence the innovation process.As such, it is a system of interconnected organizations to create, store and transfer knowledge, skills and artifacts that define new technologies" (OECD, 2009a).
Technological innovation system is a concept developed in the field of innovative scientific research that serves to explain the nature and pace of technological change (Lundvall, 1988;Lundvall & Johnson, 1994;Kuznetsov, 2002).Technological innovation system can be defined as "dynamic network of agents interacting in a specific economic /industrial area under a particular institutional infrastructure and involved in the generation, distribution and use of technology" (Bergek et al., 2008).This approach can be applied to at least three levels of analysis: By technology, in the sense that knowledge of the field, to the product or artifact, or to a set of products and artifacts designed to meet the specific function (Jacobsson & Johnson, 2000;Negro, 2007).
With regard to the latter, the approach is particularly well in explaining why and how sustainable technologies are developed and disseminated in society, or were not able to do it.The concept of technological innovation system was introduced as part of a broader theoretical school, called the innovation system approach.The basic idea of this approach is that the determinants of technological change are not to be found in individual firms or research institutes, but also in the wider social structure in which the firm, as well as academic institutions are embedded (Van Lente, 1993;Freeman, 1995;Lundval, 1988;Smits, 2002).Since the 1980s, the study of the innovation system pointed to the influence of social structures on the technological changes, and indirectly on the long-term economic growth within countries, sectors or technology areas.The purpose of the analysis of technological innovation system is the analysis and evaluation of the development of a technological field in terms of structures and processes that support it.In addition, its focus, there are two more analytical, features that set technological innovation system approach differs from other approaches innovation system (Hekkert et al., 2007).

Problem Discussion
Iranian national innovation system is relatively weak.The existing institution and national innovation system in Iran should be modified and further developed based on the active support by the central government.The primary objective of this study is to use various instruments such as comparative study, survey study and Strength, Weakness, Opportunity and Threats (SWOT) analysis to find the solutions for modification of the NIS of Iran.

Research Significance
During the last three decades, a new conceptual framework appeared in the science, technology, research and innovation: the national innovation system.The structure suggests that the ultimate objective of the study is the innovation system, and that system is part of a larger system composed of sectors such as government, universities and industry, and their environment.The framework also emphasized the linking between the components or sectors, and "cause" that explains the effectiveness of innovation systems.

Main Objective
Finding the strengths, weaknesses, threats and opportunities in the internal and external environment of National Innovation System of Iran and suggesting the solutions for modification of NIS of Iran are the main objectives of this research study.The recommendations will be included a new institution for Iran, and macro strategic recommendations.

Methodological Procedure
This research study is placed in the category of exploratory research (survey study).Researcher in this study, using the indicators (based on experiences of selected OECD countries such as Norway, Switzerland and Korea) (North, 1990;Haghi, 2010) tries to use a questionnaire to measure the effectiveness of implementation of National Innovation System of Iran.Therefore, in terms of data collection, research is a field study, and causes to generalize the results, so it is applicable study.Statistical society are the experts in the fields of parliament of Iran, policy making, technology and innovation policy coordinators such as state experts, experts employees in the ministries of sciences, researches and technologies, industries and mines, research and innovation facilitators, research and development centers, innovation developers such as consultancy firms and incubator centers in the universities and parks of technology and innovation users such as organizations, state and private corporations.In this study, 100 experts from the population are examined.Questionnaires include set of questions that interviewees selected the best choice of defined options.
For planning the questionnaire, through brain storming sessions with experts and university professors, a list of internal and external factors of national innovation system was provided.The questionnaires were distributed among a number of parliament members, university professors, members of entrepreneurship incubators, research and development centers, production companies, engineering and consulting experts, and the public and private sectors and the filled ones were collected.
The next step was to analyze the results using the following procedure: All the answers used in the survey were allocated as follow: 1-Very weak/Threat 2-Weak/Threat 3-Mead 4-Good/Opportunity 5-Very Good/Opportunity The responses were averaged for each question; the responses were also recorded to indicate the range of the scattering and the validity of each question.Therefore, for each group of internal factors that had earned three or higher average as strong point-and those who had earned on average of less than three points were identified as weak point.In addition, for each class of external factor that had earned three or higher were identified as an opportunity, and those who had earned the average point less than three were identified as threat.

National Innovation System in OECD and Developing Countries
The OECD is a unique firm where the governments of the 30 countries work together to address the economic, social and environmental problems of globalization.The organization prepares a setting where countries can compare policy experiences, seek answers to common challenges, identify good practice and work to co-ordinate local and international policies.The Commission of the European Communities contributes in the work of the OECD (OECD, 2008).

National Innovation System in OECD Countries
In this article, researcher will examine some of the individual OECD innovation policy, such as Norway, Switzerland and Korea, which have received a successful national innovation systems in Europe and Asia: Norway: In a research study by OECD in Norway, 6 levels in the policy system organizational mapping of the NIS are found (Finn & Sevin, 1997) as follows, • Organizations, laying down the general policy framework, • Technology and innovation policy formulation organizations (including funding, coordination, monitoring and evaluation), • Research and innovation promotion agencies and modulation, • Innovation, Research & Development companies, • Organizations that promote the spread of technology, • Producers of goods and services.

Switzerland Experience
In this section, the Swiss National policy innovation system are considered, "Switzerland is one of the highest gross domestic product per capita in the OECD" (OECD, 2011a).In this research study, in Switzerland, the strengths, weaknesses, opportunities and threats are distinguished to find solutions for the modification of the national innovation system of the country, such as the formal institutions are state laws and policies and company guidelines or contracts belong to this category.An example of regulations is the responsibility of feeling, to prevent or clean up the waste.Examples are cognitive heuristics or rules of finding a solution to the problems of procedures.They are also associated with the dominant vision and expectations held by the actors (Van Tape, 1993, 1998).

S1:
Strong industry (large and small firms), good framework conditions, S2: Many sectors of Swiss industry (and services) are strong in innovation, high level of industrial research, S3: Very good university sector, S4: Strong research infrastructure, S5: Strong academic output (people, publication, etc.), S6: Strong application-oriented professional education, S7: High quality approach in all sectors, S8: Language skills and ability to master intercultural setting.

Weaknesses
W1: Slow economic growth, W2: Lack of entrepreneurship and of competition in a number of sectors, W3: Lack of 'demand orientation" in the innovation system, W4: Some innovation system actors under developed, policy learning difficult, W5: Innovation issues not strongly represented in the political arena, W6: Small number of higher education graduates; educational system not preamble enough.

Threats
T1: Decline in innovative performance after extended period of stagnation, T2: Exposure of SMEs to new international competition, T3: Public sector deficits plus rising social security costs crowding out fresh money for innovation, T4: Consensus-based policy making getting to strong in innovation policy, T5: Competition between national and EU innovation funding.

Opportunities
O1: construction on scientific strengths, O2: Attractiveness as a workplace for foreign experts, O3: Clustering within Switzerland and in trans-border co-operations (OECD, 2006).
Based on the concept of the innovation system, a set of actors, issues and SWOT-analysis are included in  ---------------There are some strong positions of features in the innovation system of Switzerland as followed: 1. Strategic planning for innovation, 2. Greater attention to policy evaluation.
That is commented as Federal multi-annual message, linking budgets to priorities no "grand design" beyond and implementing international good practice and there are some relatively weak positions of features in the innovation system of Switzerland as followed:  Transition to more project-based funding in public research institutions  Increased public R&D expenditure

Korean Experience
In a research study by OECD (2009) in Korea, according to the results of a series of interviews with key stakeholders in the innovation system are listed Korean strengths, weaknesses, opportunities and threats analysis were then extracted some strategic recommendations for changes in the national innovation system Korea.The most important strengths and weaknesses, opportunities and threats, as follows: (OECD, 2009b) the Korean economy is highly dependent, o Global economic outlook and its consequences for export-oriented economies.

Strategic tasks and guiding principles in Korea
The main strategic objective of the Korean innovation policy is to achieve convergence with the more developed economies in the OECD.It needs to achieve this in the context of declining fertility rates and increased competition from newly industrializing countries, particularly china.Korean innovation policy therefore needs to speed up the transition of the innovation system of catch-up to more creative models, supporting more fundamental research in various areas, increase innovation and opportunities for the development of small and medium-sized enterprises, as well as more closely associated with international sources of knowledge.In addressing these challenges, the policy should follow certain guidelines: o International openness, o Diversification, o Shift from economic development programs toward more public and generic research, o Incorporating a long-term perspective when assessing the costs and benefits of public R&D funding, o Balancing competition with the development of co-operation and trust, o Systematic and evolutionary approach to the promotion of innovation, o Comprehensive approach to fostering innovation beyond support for R&D and Hi-tech, o Gender mainstreaming (increase female participation rates in science & Technology in order to maintain economic growth.),o Participatory governance of S&T.

The innovation landscape in developing countries
A number of exogenous factors generate systemic innovation landscape in developing countries, such as macroeconomic uncertainty, instability, physical infrastructure (lack of basic services such as electricity or old communication technology); institutional fragility, lack of social awareness about innovation, risk off nature of the businesses, lack of entrepreneurs, the existence of barriers to business start-up, the lack of public policies to support business and management training.(OECD, 2005).Instability in the micro and small business can mean that some of them have good potential to upgrade the national innovation and function called the cradle of the innovators, and some lack of resources and support for any innovation.Macro uncertainty limits any long-term innovation.(OECD, 2005).The economies of developing countries depend largely on informal practice, informal not a favorable environment for innovation.Sometimes great creativity invested in solving the problems in the informal economy does not lead to a systematic application and, therefore, leads to the isolated actions that are neither increase nor the capacity to help establish an innovative way of development.Many businesses in the developing countries work in an unusual and innovative economic environment due to the existence of, and in some cases, the prevalence of state-owned enterprises (China) or mass of parasitic enterprises (some Arab states), where there is no competition sometimes discourage innovation or drains local markets innovative capacity, although the large state-owned enterprises (for example, in sectors such as oil, aerospace and telecommunications) sometimes become technology leaders through important investments in the development of experimental work (as in some countries in Latin America).Moreover, in countries with less developed economies, the large state-owned S & T policies and programmers may have more impact than innovation and strategies of private enterprises (OECD, 2005).

Results
In this section, as SWOT view, the results of National Innovation System of Iran studies are categorized in four following categories:

Strengths
S1.The role of innovative companies, in the law of supporting the Knowledge -Based companies and inventions has been identified and approved.

S2.
According to patent and innovation law, recording of new products and production processes can be done (Parliament of IRI, 2007).
S3. Formulation of innovation policies and planning based on legislation is the task of High Council of Science and Technology.S4.After 2013, 0.5 % of GDP will be assigned to innovation, research and development fund.

S5.
Research studies in the academic centers have a good ability for innovative solutions in industries.

Weaknesses
W1. High Council of Science and Technology doesn't cover the policy making of two identified functions of innovation i.e. organizational innovation and marketing innovation.

W2. Patent Law doesn't cover two innovation types (organizational innovation and marketing innovation).
W3.There are not official and legal organizations for registration and marketing of research ideas and achievements.
W4. High-speed and secure networks infrastructure and IT applications are not strong.
W5. Data based information network for linking between researchers and applicants is not strong.

Opportunities
O1. Globalization is a good opportunity.
O2. Approach of women to enter to the universities has increased the potential of laboratories and R&D centers.
O3. Quantity and quality of universities to support research and innovation is an opportunity.

Threats
T1. Rapid transfer of new technology into the country is under sanction.

T2.
Transferring money for developing the innovative technology is suffering from sanctions.

T3. Purchasing the modern and technical equipment are very difficult
By placing the noted strengths, weaknesses, opportunities and threats, strategic recommendations according to the proposed strategic SWOT analysis are suggested as followed (see Table 2).

SO (Strengths, Opportunities) Strategies
For improving the strengths and achieving the opportunities against National Innovation System of Iran, the following strategic recommendation are suggested: SO1.Improving policies and plans for technology-based skills, SO2.Investing more in the public and private sector for research and development, SO3.Encouraging and supporting the conversion scientific knowledge to technology and technical expertise to the wealth and enterprising, SO4.Creating and developing the innovative network of small and medium enterprises in the country, SO5.Improving and planning to provide scholarships for graduate studies by enterprises.

WO (Weaknesses, Opportunities) strategies
To minimize the effect of weaknesses and achieving the opportunities against National Innovation System of Iran, the following strategic recommendation are suggested, WO1.Covering two innovation functions included organizational innovation and marketing innovation for registering and recording in Patent Law, WO2.Acceptation of high-risk finance in the field of research and development and innovation by innovation and development fund, WO3.Covering the organizational and marketing innovation for registering and recording by Industrial Property Organization, WO4.Improving the cooperation between industries and universities through common projects, WO5.Establishing an institution by taking part of government, university and industry.

ST (Strengths, Threats) strategies
For improving the strengths and minimize the effects of threats against National Innovation System of Iran, the following strategic recommendation are suggested: ST1.Optimizing the energy consumption plans in industry and universities, ST2.Developing of teamwork culture between different groups of scientific, industrial and research teams.

WT (Weaknesses, Threats) strategies
To minimize the effect of weaknesses and threats against National Innovation System of Iran, the following strategic recommendation are suggested: WT1.International cooperation and relations to reduce the effects of sanctions in the field of rapid transfer of new technologies and modern technical equipment purchasing.WT2.Improving the conditions of internal investments for the development of innovation

Conclusion and Suggestions
By using the experiences of selected OECD countries and local conditions of specifications of National Innovation System of Iran, the researcher suggests the strategic recommendation in last part and model of NIS included institutional mapping for Iran as followed:

Fig. 1 .
Fig.1.Suggested institutional mapping for NIS of Iran Table1as Swiss innovation policy in OECD countries.(OECD,2006) Arrival of strong new competitors in fields in which Korea excels, e.g.ICTs, particularly from China, o Geopolitical developments in the region, o Disruption in the supply of imported natural resources and energy upon which o Low fertility rates and an aging society, o