A study of the national innovation system of Sri Lanka

Abstract

National Innovation System (NIS) can be defined as a network of elements which include public, private and academic sector whose interactions and collaborations will induce the creation and use of knowledge for national economic benefit. The purpose of this research was to identify the existence of the NIS along with its efficiency, effectiveness, strengths and weaknesses in Sri Lanka. Literature review revealed that measuring the NIS is complex due to the large number of elements involved with no single accepted methodology to study it. The various measurement techniques such as the European Innovation Scorecard (EIS), World Bank Knowledge Assessment Methodology (KAM), Organization for Economic Co-operation and Development (OECD) Science, Technology and Industry Scoreboard, Triple Helix and Innovation Chain aim to identify the strength of the innovation system, the S&T capability and interrelationship between S&T institutions of a region or a nation. Innovation systems of six countries segregated into developed, developing and newly industrialized countries were studied. The countries studied were Australia, Finland, South Korea, Malaysia, India and Thailand. The study revealed that a central governance of S&T across the nation is vital for the success of any NIS. A combination of methodologies which included EIS, KAM, Triple Helix, Innovation Chain and Porter‟s Diamond Model were adopted to study the NIS. Data collection was through interviews with 14 experts in the government, academic and industrial sectors. Secondary data was from published data available in the annual reports, journals and the internet. The research revealed that the NIS of Sri Lanka is greatly compromised right from the very early stages of education. Low number of science based schools and exam oriented curriculum have failed to induce innovative thinking among Sri Lankan children. Further, competition for entrance into S&T universities has forced potential students to move to other fields of study. Higher education institutes and government research institutes also suffer setbacks. Lack of funds, lack of infrastructure and advanced equipment, lack of qualified human capital, low level of recognition and appreciation of researchers, difficulties in getting approval and resistance to change are serious concerns that need to be addressed immediately. This has led to decreased number of research projects done causing underutilization, demotivation and lack of coordination among existing researchers. Industrial sectors contribution to S&T development has also remained low with the exception of a few sectors like Information and Communication Technology (ICT) and the apparel sector. Increasing cost of operations, lack of government incentives for Research and Development (R&D) and poor implementation of Intellectual Property (IP) laws to protect ownership have discouraged industries to partner with government research institutes and universities for joint R&D ventures. Lack of a coordinating body for research and innovation and the lack of a governance structure for S&T have caused R&D to be performed in an ad-hoc manner with no national goal or strategy in mind. This has resulted in duplication of work at many government institutes with similar objectives but based under different ministries. These findings indicate that the government‟s role in the national S&T development needs to be improved and immediate measures should be taken to overcome existing weaknesses. Based on the findings, it is recommended that the government prioritize S&T development in its path to economic development. Initiatives to increase funds for S&T development in state research and academic institutes are vital. Further, laws should be strengthened to protect local innovations and S&T policies enforced should be implemented. The S&T community in the country is aware of these issues and has proposed a 5 year strategy plan for science, technology and innovation to be implemented. Adequate actions are necessary by the government to implement this strategy plan to make Sri Lanka the “Wonder of Asia”.