By Jorge Niosi
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Additional info for Canada’s National System of Innovation
Drawing from the new competence theory of the firm and from the concepts of the learning organization and of the knowledge economy, one may postulate that a new approach is emerging - the competence theory of nations. The NSI perspective is a good candidate to become the structuring element in that new theory. This page intentionally left blank PART ONE The NSI within Canada's Borders This page intentionally left blank 2 Canada's R&D System The entrenched image of Canada presents this country as both a latecomer and a laggard in the area of science and technology.
In countries such as Germany, Japan, and South Korea, universal banks and industrial financial conglomerates supposedly reduce the information asymmetries between financiers and industry. The latest financial crisis in Southeast Asia has shown that complacency in the lending policies of the banks was also frequent. Conversely, in countries with commercial banks and open, competitive capital markets, such as Australia, Canada, the United Kingdom, and the United States, there may be weaker links between innovative industry and finance.
The concept of NSI is related to the new theories of international production and trade, based on the concept of increasing returns. In these theories, government intervention appears to be beneficial to the trading nation, by fostering creation of new knowledge-based industries through technology policy, by nurturing new productive organizations through industrial policy, by managing promotion of trade export, and/or by protecting these infant industries. Drawing from the new competence theory of the firm and from the concepts of the learning organization and of the knowledge economy, one may postulate that a new approach is emerging - the competence theory of nations.