Economics 101: Regional Innovation System Analysis and Review

This report provides an analysis of the Regional Innovation System (RIS). The RIS promotes collaboration between firms, research institutions, and government bodies within a specific region to foster innovation. Key features include collective entrepreneurship, where various entities cooperate to drive innovation. The government plays a crucial role in formulating policies that support innovation and interaction. The RIS addresses the challenges of global competitiveness, outdated regional development models, and the emergence of industrial clusters. The report highlights the benefits of RIS, such as promoting local unity and providing a competitive advantage in the global market. The report also mentions the role of support institutions, such as providing financial aid and enhancing skill sets. The EU has adopted the RIS model to distribute its funds and promote regional economic development. The RIS emphasizes the importance of knowledge as a public good and aims to create a supportive environment for innovation to thrive within a region. The report also mentions the key role of the government and regional authorities in formulating policies and laws that promote innovation and interaction within the organizations.

Essay question 3
Identify the key characteristics and discuss the strength and weaknesses of one specific
system of innovation (this could be either a national, regional or sectoral system of
innovation
For this essay, we will focus on the Regional innovation system[RIS].
RIS entails the distribution of knowledge, skill set and effective practices within a
geographical region which is not limited to a city but also does not encompass a nation. RIS
draws on the competitive advantage that an area may command because of its economic,
political, social and institutional relationships that focus on developing a cohesive learning
process within the preview of technology.
RIS is known to be higher in regions where both large and small firms coexist and has been
identified as the means of boosting national competitiveness by most of the governments
through their cluster building policies.
The European Union[EU] has successfully adapted the RIS model. Region specific innovation
policies have been adopted by the EU in formulating its policies and determining its
investments and the nature of distribution of its structural funds. EU consciously devotes a
large part of its funds in the establishments and enhancement of a region.
Today companies can use the resources available in different territories to their advantage
in order to stay ahead of the competition in the global market, a task made possible
because of the RIS.
A particular region may be identified and the government supports the innovative
enterprise of the region through its friendly administrative policies and promoting economic
development. Once the region is identified, it allows the economic activities to take
advantage of all innovation strategies that are undertaken by companies, R&D institutions,
government etc. These regions then in turn become hubs of industrial activity.
In the case of regional innovation system, support institutions play a key role in the
production of knowledge, providing technological know-how, enhancing skill sets and
providing financial aid to the organizations that markets fail to provide.
RIS helps in maintaining and promoting local and regional unity in times of market instability
and helps regions gain a competitive advantage in the global market. RIS endorses the
crucial role of concepts and information as public goods.
RIS is the solution to three challenges faced by regional communities:
1. Snowballing of worldwide competitiveness in today’s globalised economy;
2. To meet the short falls of outdated regional development models and policies;
3. The natural establishment of successful clusters of companies and industries in a lot
of areas around the world.
Key features
One of the key features of RIS is collective entrepreneurship. RIS promotes the collaboration of
innovative firms within its regional network. Manufacturers, suppliers, competitors, clients, R&D
organisations, innovation support institutions, government bodies, funding institutions and the

labour market all cooperate and interact with each other to support the process of innovation within
their region. The government and regional authorities have a key role to play by formulating policies
and laws that promote innovation and interaction within the organizations