Functions of innovation systems and their indicators of strength
| System function | Function description | Indicators of function strength | |
|---|---|---|---|
| F1 | Knowledge development and diffusion | Refers to the breadth and depth of the scientific, technological and market knowledge base | Qualitative assessments of function by managers and others |
| F2 | Legitimation | Relates to the social acceptance and compliance of the technology with relevant normative institutions | Normative institution: how legitimacy influences demands and behaviours |
| F3 | Resource mobilisation | Mobilisation of infrastructure and human and financial resources | Volumes of available capital |
| F4 | Guidance of search | Influence on the direction of development within the innovation system | Cognitive institution: articulation of needs for technological innovations by end-users and the demand-side as well as expectations about growth potential |
| F5 | Entrepreneurial experimentation | Refers to the probing into new technologies and applications | Number of new entrants and actors and different types of applications (supply side) |
| F6 | Market formation | When innovations are widely available on the market | Size and type of markets and customers. Actor's strategy to enhance market access |
| F7 | System-wide synergies | Reinforcing system where all functions are fulfilled and spread positive effects | Economic effects due to cognitive-regulative institutions (demand-side): establishment of standards and formal networks between actors |
| System function | Function description | Indicators of function strength | |
|---|---|---|---|
| F1 | Knowledge development and diffusion | Refers to the breadth and depth of the scientific, technological and market knowledge base | Qualitative assessments of function by managers and others |
| F2 | Legitimation | Relates to the social acceptance and compliance of the technology with relevant normative institutions | Normative institution: how legitimacy influences demands and behaviours |
| F3 | Resource mobilisation | Mobilisation of infrastructure and human and financial resources | Volumes of available capital |
| F4 | Guidance of search | Influence on the direction of development within the innovation system | Cognitive institution: articulation of needs for technological innovations by end-users and the demand-side as well as expectations about growth potential |
| F5 | Entrepreneurial experimentation | Refers to the probing into new technologies and applications | Number of new entrants and actors and different types of applications (supply side) |
| F6 | Market formation | When innovations are widely available on the market | Size and type of markets and customers. Actor's strategy to enhance market access |
| F7 | System-wide synergies | Reinforcing system where all functions are fulfilled and spread positive effects | Economic effects due to cognitive-regulative institutions (demand-side): establishment of standards and formal networks between actors |
Source(s): Bergek et al. (2008), Hekkert et al. (2007), Rickne (2000)