English / ქართული / русский /
Ramaz Abesadze

Annotation. The paper examines the current strategic directions in the innovation policy of the European Union - "open innovation", "open science" and "openness to the world". On this basis, the essence of the national innovation system and their models at the modern stage have been studied.

Keywords:Open innovation, open science, openness to the world, innovation systeminnovations 


Innovation (English innovation) comes from the Latin "Innovatio", which means "renewal". The prefix "In" is translated in Latin as "in the direction". Therefore, the word "Innovatio" means "in the direction of renewal". Indeed, the main essence of innovation lies in updating, introducing something more progressive. The term innovation in economics was first introduced by the Austrian economist Joseph Schumpeter [Шумпетер Й. A. 1989.], however, essentially, it was used by another term even before that. Adam Smith pointed out that the role of the organizational mechanism of capitalism is played not only by the market economy, but also by competition, which forces the entrepreneur to increase efficiency by switching to new technologies, that is, through innovation [Смит А.2007].

N. Kondratiev in his theory about big business cycles [Кондратьев Н. D. 2002] substantiated the existence of large cycles with a duration of 50-60 years. According to him, before the beginning of the upward wave of the great cycle, there are profound qualitative changes in the economic activity of the society, which are manifested by essential innovations in techniques and technologies, both in the field of production and exchange. Of course, these innovations mean the implementation of innovations in the economy.

The foundations of innovative development in the socio-cultural field were created by P. Sorokin [Сорокин П. С. 2000]. According to him, the predominance of any type of culture determines the characteristic features, structural features, and dynamics of each society.

An important contribution to the development of the theory of innovation belongs to the English scientist John Bernal. It indicates that periods of prosperity in science coincide with the growth of economic activity and technical progress as a result of the use of innovations [Бернал Дж. 1956].

Ideas developed by J. Schumpeter and J. Bernal, Nobel laureate Simon Kuznets [Kuznets S. 1930] further enriched the theory of innovation. He introduced the concept of epochal innovations, that it is through them that the transition from one historical era to another takes place.

The progress of society is inextricably linked to innovation. It led to unprecedented progress in all spheres of human activity and daily life. It can be said that the process of economic development is the process of implementing innovations in all elements of the economic system.

Innovations take place in any setting, but it acquires special importance at a certain stage, when innovations take on a continuous character and become the most important factor of development. These processes started in the 70s of the last century and reached the highest level of development in the advanced countries of the world. That is why the economy of these countries is called innovative economy. Innovative economy is based on knowledge, innovation flow, technology, information, institutions, human capital, production organization, products, etc. Continuous improvement, intellectual work of scientists and innovators, not just capital. Science, invention, innovation represent a single organic factor of development in such an economy [Abesadze... 2015]. 

"Open Innovation" and "Open Science"

Innovatiion policies are constantly being developed in developed countries. The European Union plays a leading role in this regard. The new EU innovation strategy envisages the achievement of three new goals, namely: transition to open innovation; openness of science; openness to the world.

"Open Innovations". Innovation policies differ significantly from country to country according to their level of development. In the European Union, where the innovation policy has experienced significant progress over the years, the clarification of both its content and monitoring components is being carried out at an accelerated pace recently. In terms of importance, the factors of "openness" of the innovation process come to the fore, and the total indicators of "expenses" and "output" that worked successfully before, such as the large volume of resources involved in it, active patent and publishing activity are no longer a guarantee of its success [Tsirenshchikov V. 2019]. The changes in the innovation policy were announced by the European Commissioner for Science, Research and Innovation, Carlos Maedas, in a speech at the conference ("A New Start for Europe: Opening the European Innovation Research Area") in Brussels on June 22, 2015. He presented for discussion a new innovation strategy based on the idea of ​​spreading "open innovation". . The classic definition of open innovation was given by its founder, Henry Chesbrough, as the use of inbound and outbound knowledge flows to accelerate internal innovation [Open Innovation…, 2015].

"Open Science". for the first time, the concept of "open science" was put forward by the American economist Richard Nelson, he announced the need for open sharing of scientific knowledge [Nelson, R. 2012], that scientific research should be made available to all interested layers of society, whether they are professionals or amateurs. This means a new approach to the scientific process, based on new methods of collaboration and knowledge dissemination using digital technologies and new interaction tools [Open Innovation…, 2015]. This concept has long been the focus of the European Commission [Commission Recommendation... 2012] Back in 2012, the European Commission recommended an open access policy for all publicly funded research. [Open Innovation..., 2015]. It aims to move from the standard practice of publishing research results in scientific journals to the joint development and application of all available knowledge. It can be compared to networking, the network gets better as more people use it. "Open Science" enables end users to become creators of new ideas, relationships and services. Thus, "open science" expands the forms of traditional scientific research and collaboration, increases the intensity of knowledge sharing, removes restrictions on their exchange, the obstacles to publication of research results in high-ranking journals and registration of intellectual property rights.

"Openness to the world" is the third component of the EU's new strategic objective, which involves strengthening and expanding international cooperation in the field of science and innovation, based on even greater openness around the world. Partnerships between countries and regions should develop into a global science space where scientists and innovators can work freely with colleagues from around the world. 

Innovative system and its models

Innovations are the basis of economic development at the modern stage. In the conditions of modern competition, the struggle is primarily not about resources, but about the ability to innovate. [Швец... 2019.] The innovation process is inseparable from the innovation system. The concept of innovation system was first introduced by the English economist, Bernal Prize laureate Christopher Freeman. He considered the national innovation system as a combination and relationship between economic entities and organizations that participate in the creation, storage and distribution of new knowledge, transforming it into new technologies, goods and services that are used by society (Freeman C. 1987). The American economist Richard Nelson wrote that innovation is a complex process that unites different participants, such as: firms producing new knowledge, technological and analytical centers, among which there are many connections and which thus create an innovation system [Nelson R. 1993].

The National Innovation System (NIS) includes: relevant state bodies, scientific and educational system, innovative infrastructure. It is the state regulation bodies that carry out the state regulation of the formation of the innovation economy. Almost all branches of the government participate in it, special importance is given to ministries of economic profile. The National Bank's contribution to the process of forming an innovative economy is also great, since the correct monetary policy has a positive effect on the development of the economy in general and, naturally, on the management of innovative processes. The statistics service also plays an important role, since without data on the implementation of innovations in enterprises, it will be impossible to implement the correct innovation policy and plan events.

In the formation of an innovation economy, the activities of non-economic profile ministries are also of great importance, since economic development is greatly influenced not only by economic factors, but also by non-economic ones. In this regard, the Ministry of Education and Science stands out, which is responsible for the development of the foundation of the innovative system of the country - education and science. Other ministries also have a positive influence, for example, the Ministry of Foreign Affairs, establishes good relations with other countries of the world, improves the investment environment, which promotes the influx of innovations in the country, etc.

Parliament must adopt relevant legislative acts based on its own initiatives or documents proposed by the government.

The business environment is highly dependent on the effective functioning of the law enforcement system. In case of protection of justice, both internal and external investments increase and vice versa.

Local authorities are authorized to support the implementation of innovative projects, the formation and development of regional innovation systems.

The formation of a perfect innovation system is impossible without the existence of developed educational and scientific systems. The educational system should ensure the education of highly qualified entrepreneurial and scientific personnel, and the scientific system should generate new knowledge (discoveries) of a fundamental and applied nature. However, education and science cannot be considered as one field. It is true that the education system provides scientific personnel, but it is not education that creates new knowledge, but science, which determines the progress of society and education itself. Therefore, priority should be given to science.

The innovation system also includes: 1. Resources - scientific and technological research, financing and insurance mechanisms, human resources; 2. Institutions that establish common conditions for innovative activities - laws, regulations, rules, norms, standards; 3. Infrastructure.

The infrastructure of the innovation system consists of those entities whose activities are aimed at promoting the connection, cooperation and implementation of innovative activities of the educational, scientific, private and state sectors. It is through it that the decisions of state bodies and the private sector are transformed into innovation, i.e. all processes from scientific discoveries to innovations. In order to promote innovative activities, the following entities of the infrastructure of the innovation system can be created by the state body or another person: scientific or technological parks; business incubators; business accelerators; technology transfer centers; industrial innovation laboratories; innovation laboratories, innovation centers.

The scientific-technological park provides infrastructural and professional services in a defined space for higher educational and scientific-research institutions and other subjects of innovative activity. It promotes the cooperation of the persons listed here, the fastest possible use of new technologies, the creation of new products and services and their delivery to the market.

The main function of the business incubator is to provide workspace, administrative and other types of technical support for subjects of innovative activity selected by competition for a period of no more than 2 years.

The main function of the business accelerator is to provide a working space for the subjects of innovative activity selected by the competition, to develop and improve their business idea and model, if necessary, to invest according to the conditions of the relevant competition.

Technology transfer center provides innovation transfer, which includes evaluation of commercial potential of innovation, finding partners for innovation transfer and evaluation of such transfer for commercialization.

The industrial innovation laboratory provides infrastructural and professional services for any interested person in a defined space, which includes testing ideas and making samples.

The innovation laboratory, as a result of cooperation with educational institutions and legal entities of private law, provides infrastructural and professional services and trainings to any interested person, which involves specific business-oriented training, idea testing and sample making.

The innovation center ensures the improvement of computer skills of the population, the development of entrepreneurial skills in the field of innovation, the introduction of distance learning and employment platforms.

In addition, innovative infrastructure can include a wide range of other subjects: scientific-research institutes and construction bureaus; small innovative enterprises; clusters; small innovative, engineering, consulting and information services; training centers; leasing service companies; state and non-state funds supporting innovative entrepreneurship. In order to improve financial support, it is desirable to have an innovation bank, which will issue long-term loans at a low interest rate, insure them, etc., for the implementation of innovative projects.

The innovation system includes all stages of the innovative process, from research to production and sale. The innovation system is a very complex organism, it ensures the intensive flow of new knowledge, its transformation into scientific and technical innovations and their commercialization. Innovation systems differ from each other depending on the countries and the tasks they face. Several models of the innovation system are distinguished:

The Euro-Atlantic model, which has been implemented in various versions in the USA, Canada, and developed European countries, has all the components of the ACE structure. That is, it is a model of the complete innovation cycle from the emergence of an innovative idea to the mass production of a finished product. In developed European countries, national innovation systems are concentrated around the largest universities (however, in a number of countries - France, Denmark, Sweden, etc., research institutes and academies of sciences also play an important role).

The East Asian model differs from the Euro-Atlantic model in that, first of all, universities as centers of innovative development play a much smaller role than research laboratories of corporations, and the national innovation systems of these countries were almost completely devoid of the fundamental science component. Secondly, these countries mainly borrowed technologies from countries with Euro-Atlantic type of national innovation systems, thirdly, the largest part of the expenditures on scientific research and experimental design work (R&D) was carried out by the private sector (Japan, South Korea, Singapore, Hong Kong, Taiwan). However, in the middle of the 80s of the last century, such a system somewhat exhausted itself, and since then the gradual transformation of the national innovation systems of these countries began.

An alternative model was developed mainly in agricultural countries, which do not have significant scientific potential, as a result of which their national innovation systems lack the block of fundamental and applied science. In the formation of national innovation systems in these countries, emphasis is placed on the development of innovative management of individual sectors (for example, agriculture, food industry, light industry, tourism) and technology borrowing, rather than their development (Chile, Thailand, Portugal). However, gradually these countries began to develop some high-tech industries and to form the necessary innovative infrastructure, including in the field of fundamental and applied science.

The triple helix model is a product of the development of the Euro-Atlantic model. It found development in the United States, and its individual elements - in some developed countries of Western Europe, Brazil and Japan. This model describes the interaction of three institutions (science, government, business) at each stage of creation and introduction of an innovative product into production, as well as the interaction of three participants at all national, regional, sector and enterprise levels [Бурдули... 2017].

   At the modern stage, the models of the innovation system are changing, mainly in accordance with the above-mentioned "open innovation", "open science" and "concepts of openness to the world and the activation of ecological problems". The traditional three-ring system of the spiral ("science-state-business") has been replaced by a four-ring model - "science-state-business-society", where society is considered as a full-fledged subject of the innovation system. Then this model is perfected and a five-ring version was born - state, science, business, society, environment. This model, in contrast to the three-ring model, implies the principle of openness of innovations, i.e. the significant involvement of society in innovative processes, as well as consideration of the existing environment, where the environment means ecological factors that lead to the sustainable development and stable functioning of the other components [Tsirenshchikov V. 2019]. 


  1.  Abesadze R. 2015. Innovations and general directions of innovative economy formation in Georgia. TSU P. Collection of Scientific Works of Gugushvili Institute of Economics, Tbilisi, "TSU P. Publishing House of Gugushvili Institute of Economics" (in georgian)
  2. Бурдули В. Особенности трансформации национальных инновационных систем в некоторых развитых странах. – В сб.: Proceedings of Materials of International Scientific-Practical Conference Dedicated to the 65th Anniversary of Professor George Tsereteli: Structural and Innovative Problems of Economic Development. Publishing house of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University. Tbilisi, 2017. Стр. 32-39.
  3. Бернал Дж. 1956. Наука в истории общества. М.: ИЛ – 1956.
  4. Freeman C. 1987. Technology Policy and Economic Performance. London: Pinter Publishers
  5. Commission Recommendation of 17 July 2012 on access to and preservation of scientific information https://op.europa.eu/en/publication-detail/-/publication/ 48558fc9-d4c8-11e1-905c-01aa75ed71a1/language-en
  6. Nelson R. 1993. National Systems of Innovation: A Comparative Analysis. Oxfordhttps://books.google.ge/books?hl=en&lr=&id=C3Q8DwAAQBAJ&oi=fnd&pg= PR7&dq=Nelson+R.+1993.+National+Systems+of+Innovation&ots =diN_ hNACrM&sig=jmEBjO8jnE4vke8mwS345TXZKHk&redir_ esc =y#v=onepage&q=Nelson%20R.% 201993 .%20National%20Systems%20of%20Innovation&f=false 
  7. Kuznets S. 1930. Secular Movements in Production and Prices. Their Nature and their Bearing upon Cyclical Fluctuations. Boston: Houghton Mifflin, 1930.
  8. Freeman Ch. 1974. The economics of industrial innovation
  9. Lundvall B. Nationa. 1992. Systems of Innovation: Towards a Theory of Innovation and Inter- active Learning. London, 1992.
  10. Open Innovation, Open Science, Open to the World 22 June 2015. European Commission – Speech. Brussels, “A new start for Europe: Opening up to an ERA of Innovation”. Conference
  11.  Tsirenshchikov    V. 2019. Strategy of Innovative Development of the European Union: New Goals and Initiatives. „Sovremennaya Evropa“, 2019 Issue 6 https://arxiv.gaugn.ru/s0201-70830000621-6-1-ru-417/
  12. Кондратьев Н. Д. 2002. Большие циклы конъюнктуры и теория предвидения. М.: Экономика, 2002.
  13. Смит А. 2007. Исследование о природе и причинах богатства народов. — М.: Эксмо, 2007. 
  14. Сорокин П. С. 2000. Социальная и культурная динамика. 2000.
  15. Швец И. Ю. 2019. Институциональные аспекты национпльной инновационной системы. Друкеровский вестник. 2019. № 5
  16. Шумпетер Й. А. 1989. Теория экономического развития. М.: Прогресс, 1982.