A framework to analyse the role of government in promoting quality innovation in developing economies : a case study

This chapter analyses the role of government in promoting quality innovation in developing economies. The emphasis is on the importance of understanding firms as main actors of innovation that form the central core of the national innovation system framework. The authors discuss the importance of recognising the range and diversity of innovation firm-level actors in the world's developing economies and their broad requirements for systemic support in order to capitalize on existing resources within the economy. Using the Sri Lankan national innovation system as a case study, the authors discuss the limited ability of traditional systemic approaches to account for diverse firm requirements in the innovation process. In order to promote quality innovation in firms, it is important that governments in developing economies where resources are scarce build on existing capabilities in innovation and technology.