National Innovation Systems in Developing Countries

Abstract: NIS concepts are increasingly being utilised to inform public policy, both in the developed and developing world. This paper attempts to add to the discourse on how it is being applied within a developing context, particularly within a country aiming to transition into one developing its own innovation capabilities. By examining Malaysia as a case study, utilising NIS literature, domestic innovation surveys and international innovation benchmarks, weaknesses of the country’s approach are identified which can be used to inform the actions of policy makers operating within similar context. The key recommendations are to ensure government efficiency through horizontal and vertical alignment across public organisations on key innovation outcomes in order to reap the benefits of any targeted innovation policies.