Buss & Gov Que Essay Example | Topics and Well Written Essays - 750 words

Buss & Gov Que - Essay Example In order to understand the effectiveness of the system approach to innovation, it is significant to review how this system has led to strengthening of innovation in the United States of America. Innovation in the Unites States of America can be viewed as a role of free access to markets, capital, human resources, macroeconomic environment, and industrial structure (Bergek et al 2008, p 408). The Function approach has been used by policy makers in the United States, which in turn has strengthened the tendency of innovation system perspective to open up richer and more difficult innovation policies. In addition, policymakers also use the innovation system approach to define process goals of their interventions in terms of a changed functional pattern in industrial operation. They have done this by explaining the nature of these processes in terms of the outcome of a balance between various inducements and blocking mechanisms. The approach is applied to identify the key policy challenge s that exist. The components of the innovation system are networks, institutions, and actors who contribute to the function of diffusing, developing, and utilizing new products and processes. Although the system calls for collective actions and coordinated action, an innovation system approach is analytical in nature in the sense that it does not focus on how to exist as fully-fledged system. For instance, access to capital is very essential to commercializing output. Some areas in the US have taken longer periods to bring new items to market. Due to this, the availability of funds to fund the commercialization of new technologies is very essential in determining the performance of the business. In addition, the industrial structure in the United States has provided competitive environment where technological innovations can operate. Further, development is often linked with availability of technology developers whose role is to drive development by providing required technologies, resources, markets, and applications. Most industries innovate and improve on new products in order to be competitive. The level of resource mobilization in the United States is strong since it has managed to mobilize human capital through education and training in specific scientific and technological disciplines as well as entrepreneurial, finance and management. There is an association between industries and educational institutions whereby educational institutions offer educational programs that prepare students to venture into business by developing stronger association to the industrial sector via internships, cooperation, and research projects (Bergek et al 2008, p 410). The importance of innovation and diffusion process recommends the generation of positive external economies, which is a key process in the formation, and growth of business. The feature of United States markets and marketing potential has influenced the innovation and diffusion of its business. For instance, it has access to regional, local, and international markets in which it can sell its products. The nature of technological innovation changes with time so as the nature of industrial products and services in that industries and factories manufacture new products based on new and enhanced technology. Therefore, in order for commercialization to be successful like it is in the United States, it is vital to create a conducive surrounding to innovation and