National Systems Of Innovations And The Role Of Demand. A Cross Country Comparison

This paper focuses on the role of demand in the National System of Innovations: why it is so important, and how does it affect the dynamics of the system and the flow of inventions and innovations. To study the evolutions and the dynamics of the different systems a series of composite indicators will be build up. In the paper it will be argued that the system of innovation can be defined by four different dimensions: Social and Human Capital, Knowledge Creation, Innovation capacity of the Supply and Innovation from the Demand. The evolution of these dimensions is studied over a period of fifteen years and compared across fourteen European countries.