C UÁL ES EL OBJETIVO DE LAS REUNIONES CELEBRADAS EN EL MARCO DEL D IÁLOGO

An IS is made up of structural components and the relationships among these components (Freeman, 1995; Lundvall, 1992). According to Foster and Heeks (2013), Freeman (1995) and Suurs (2009), the four structural components consistently used in literature are:

 actors;  relationships;

 soft and hard institutions; and

 physical, financial and knowledge infrastructure.

These structural components form the foundation that facilitates functions of the IS. Relationships among structures form the functions of the IS and shed light on the dynamics of the system. In more recent literature, specific attention has been given to functions of ISs (Alkemade & Hekkert, 2009; Suurs, 2009). The TIS literature introduced the concept of system functions and argues that a system can be better described through its functions. The idea behind this approach is that the system is considered to have a purpose, and that this purpose can be served through the fulfilment of a set of functions (Jacobsson & Bergek, 2004). An important purpose of the IS is to induce innovation processes (Suurs, 2009). Activities that contribute to the creation and diffusion of innovations are considered system functions (Alkemade & Hekkert, 2009; Suurs, 2009). System functions can be understood as types or sets of activities that contribute to the overall innovation process of a system (Wieczorek & Hekkert, 2012). The performance or functioning of the system can then be expressed in how well the individual functions have been fulfilled (Bergek et al., 2008). Literature is still not in agreement regarding a definite list of functions;, however, seven system functions have emerged within the literature (Bergek et al., 2008; Suurs, 2009; Wieczorek & Hekkert, 2012):

 knowledge development;  knowledge diffusion;  entrepreneurial activities;  market formation;

36  guidance of search;

 creation of legitimacy; and  resource mobilisation.

Section 4.2.1 explores system structures and section 4.2.2 provides a thorough outline of system functions.

4.2.1

SYSTEM STRUCTURES

System structures and functions are the building blocks of any study to understand a specific IS. This section will contribute to a better understanding of the different concepts involved and which serve as the building blocks towards the proposed analytical framework. The four structures identified are explained in this section, namely actors, interactions, institutions and infrastructure.

– Actors

Actors are the components that produce innovation activities. It is important to identify the relevant actors who have an influence on the system (Wieczorek & Hekkert 2012). Actors are seen as civil societies, government, non-governmental organisations (NGOs), companies (start-ups, small and medium-sized enterprises [SMEs], multinationals, large firms), knowledge institutes (universities, technology institutes, research centres, schools), and other parties such as legal organisations, financial organisations/banks and intermediaries (Bergek et al., 2008; Hekkert et al., 2007).

– Interactions

Linkages develop among actors, institutions and technologies, and when structural factors form a configuration it is called a network (Suurs, 2009). Networks become an essential part of any system, as they are the base for knowledge development, learning and knowledge diffusion as captured by the following quote, “the fundamental uncertainty involved in innovation leads to a process of search, experimentation, and satisfying behaviour – in short, a learning process” (Suurs, 2009:213).

Dynamics within ISs form through a combination of structural tensions (divergence among actors, institutions and innovations) and synergies (complementarities), represented through various relationships within and between networks (Suurs, 2009). Networks may have a specific task, such as public–private partnerships (PPPs) or standardised networks, or they may be informal towards a specific industry such as university–industry links or buyer–seller relationships (Bergek et al., 2008).

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Institutions or institutional structures are identified as the rules and norms of the system, including culture, regulations and routines, and are at the core of any IS (Suurs, 2009). Institutions outline the humanly invented constraints that form human interaction (Edquist & Hommen, 1999).

Two types of institutions exist, namely formal and informal institutions (Edquist & Hommen, 1999). Formal institutions are rules enforced by authorities, while informal institutions are rather a tactic nature formed organically through the interaction of actors (Bergek et al., 2008). Alignment of institutions is essential and will not manifest on its own; the contrary is true (Jacobsson & Lauber, 2006). Institutional alignment is important as it indirectly influences the presence and skills of enactors. It plays an important role towards interventions, as it is a key factor in government policies and business strategies (Suurs, 2009).

– Infrastructure

Infrastructures is not limited to physical infrastructure, but also takes into consideration intangible infrastructure, which entails the skills and know-how produced and accumulated through in the system. Infrastructure may be viewed according to a three-pronged approach: physical, knowledge and financial (Wieczorek & Hekkert 2012). Physical infrastructure entails for instance buildings, roads, machines, mobile networks and harbours. Knowledge infrastructure entails for instance knowledge of the system, strategic information and expertise for a specific sector. Financial infrastructure may entail all forms of financial support which may be realised through programmes and grants.

4.2.2

FUNCTIONS OF THE INNOVATION SYSTEM

Functions describe and map current functioning of systems regarding key processes and provides a picture of the current functional pattern (Bergek et al., 2008). The central idea of the approach is that the system purpose is achieved through the fulfilment the functions of the system (Woolthuis et al., 2005). Suurs (2009) emphasises that the most important purpose of the IS is to stimulate innovation processes, and that the activities that develop the innovation may be labelled ‘system functions’. System functions are more evaluative than system structures as they are useful to explore the performance or dynamic patterns exhibited by the system (Wieczorek & Hekkert 2012). System functions represent the system at a specific moment. The next section expands on the seven system functions identified by Wieczorek and Hekkert (2012).

– F1: Entrepreneurial activity

An IS cannot be without entrepreneurs, as they are essential for ISs to function (Hekkert et al., 2007). The role of an entrepreneur is to turn the potential of new knowledge, networks and markets into actions that generate as well as take advantage of novel business opportunities (Hekkert et al., 2007).

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Entrepreneurs may be new entrants in new markets, or existing companies that expand their business strategy to utilise new developments (Suurs, 2009).

– F2: Knowledge development

This function is concerned with the process of knowledge development and learning. It is at the core of an IS as it forms the base for the functioning of the system. The function analyses and portrays the breadth and depth of the knowledge base (Wieczorek & Hekkert, 2012a). Knowledge may be generated through research or by ‘learning-by-doing’ (Bergek et al., 2008). The system approach towards innovation substantiates the fact that a broad approach to knowledge development is required where knowledge is not only developed, but also put to use. Bergek et al. (2008:12) outline the difference between type and source of knowledge development:

 “Type: scientific, technological (e.g. system integration), production, market, logistics, application specific, design, etc.”

39 – F3: Knowledge diffusion

Knowledge diffusion is concerned with the diffusion and availability of knowledge to system actors (Wieczorek & Hekkert, 2012). Networks bind an IS, and one of the main functions of a network is that of facilitating the exchange of knowledge between all the actors involved in the system (Wieczorek & Hekkert, 2012). Knowledge diffusion takes place through engagement between actors. In the instance where knowledge diffusion takes place, a mutual understanding will evolve and, in turn, enable institutions to gradually adjust innovative solutions, and vice versa (Suurs, 2009).

– F4: Guidance of search

‘Guidance of search’ relates to activities in an IS that guides actors with the aim of future support of an innovation (Wieczorek & Hekkert, 2012). ‘Guidance of search’ refers to choices of individual actors supporting an innovation, and may include hard institutions, such as policy regulations. It also includes the different promises and expectations from actors within the system (Bergek et al., 2008).

A lack of concrete direction for knowledge development, knowledge diffusion and entrepreneurial activities is bound to lead nowhere (Hekkert et al., 2007). The fulfilment of the guidance of search function is an interactive process including governments, technology producers, technology users and NGOs, and the promises and expectations of the developing innovation (Suurs, 2009).

– F5: Market formation

Markets may be greatly underdeveloped or not exist at all for emerging ISs (Van der Hilst, 2012). These uncertainties may prevail in a wide variety of dimensions as market places do not exist if prospective customers may not have expressed their demand, or if they do not have the necessary platform or expertise to do so or the performance and price of the new technology may be uncompetitive due to the lack of market understanding (Suurs, 2009). This function is mainly concerned with the formation of markets for emerging innovations.

– F6: Resource mobilisation

‘Mobilisation of resources’ refers to the allocation of financial, material and human capital (Suurs, 2009). There is a need to understand the extent of a system to mobilise its resources, as resource mobilisation represents a basic economic variable (Bergek et al., 2008) . The importance of it is evident in the following quotation, “An emerging technology cannot be supported in any way if there are no financial or natural means, or if there are no actors present with the right skills and competences” (Suurs, 2009:47).

40 – F7: Creation of legitimacy

Legitimacy is social acceptance and compliance of the relevant innovation with existing institutions (Zimmerman & Zeitz, 2002) to mobilise resources and create a demand to acquire political strength for the emerging system, should the proposition of a system be considered suitable and sought after by active actors in the system (Bergek et al., 2008). Legitimacy is not a given, and especially not for emerging innovations, which is still a very new concept. The legitimacy process is formed through mindful actions by institutions and actors to overcome the burden of newness that usually exists for a novel innovation (Zimmerman & Zeitz, 2002).