THE LIMITS OF THE NATIONAL INNOVATION SYSTEMS MODE

THELIMITSOFTHENATIONALINNOVATIONSYSTEMSMODEL:THECASEOFTURKEYADissertationPresentedtotheFacultyoftheGraduateSchoolofCornellUniversityInPartialFulfillmentoftheRequirementsfortheDegreeofDoctorofPhilosophybyTanselErbilJanuary2007©2007TanselErbilTHELIMITSOFTHENATIONALINNOVATIONSYSTEMSMODEL:THECASEOFTURKEYTanselErbil,Ph.D.CornellUniversity2007TheriseoftheNeo-SchumpeterianeconomicthoughtintheeconomicdevelopmenttheoriesinthelasttwodecadesputtheNationalInnovationSystems(NIS)approachtotheagendaofdevelopingcountries.However,aproperconsiderationshouldbeplacedontheexternalandinternalfactorsthataffecttheanygivencountry’scapacityinadaptingtheproposedinnovationpolicies.Thus,theformalinnovationsystemsapproachshouldbeincorporatedmoredirectlywiththestudiesonthesocialdimensionsofthetransitiontonewknowledgesocietywithoutbeingtrappedintotechnologicaldeterminismoftheneo-Schumpeterianapproach.BIOGRAPHICALSKETCHTanselErbilwasborninAnkara,Turkey,andobtainedhisB.A.degreeinUrbanPlanningfromDokuzEylülUniversity,İzmir,in1988.AftercompletingMaster’sdegreeinUrbanPlanninginMimarSinanUniveristy,Istanbulin1994heattendeddoctoralprograminCityandRegionalPlanningDepartmentatCornellUniversityin1998.iiiTomysoulmateAslıandthefuture,ourson,ArdaivACKNOWLEDGMENTSInthislongjourneyofcompletingthedissertationitwouldnotbepossibleformetoseetheendofthetunnelwithouttheconstantsupportofmyadvisors,familyandfriendsinIthacaandinIstanbul.Firstofall,Iamgratefultomycommitteemembers.Myadvisor,ThomasVietorisz,hasalwaysbeensupportiveinthewholeprocessofthedissertationandencouragedmewithpositivecommentswheneverIneededmost.Hispatientandknowledgeonthedevelopmenttrajectoriesofthecountriesmadeboththisdissertationandhisclassesveryexcitingexperiments.Inthinkingaboutdifferentdimensionsoftheinternationalplanning,SusanChristophersonprovidedmenecessarystimulusinthemeaningfulorganizationofconceptsanddefinitions.Herconstantinterestonthesubjectandherbroadapproachtoissueswithoutmissingthehumandimensionofallactionsopenednewavenuesofthinkingforme.Indealingwiththetechnologicaldimensionsofthesubject,AlanMcAdamswasveryhelpfulformeinunderstandingtheendlesspossibilitiesofthetelecommunicationstechnology.Hisbroadvisiononthesubjectencouragedmetodealwiththenewengineeringconceptsthatpreviouslywereunheardforme.InTurkey,IamindebtedtotheCouncilonHigherEducationandMimarSinanFineArtsUniversityforprovidingmefinanciallyinpursuingadoctoraldegreeatCornell.MycolleaguesintheCityandRegionalPlanningDepartmentofMimarSinanFineArtsUniversitywerealwayssupportiveandhelpfulduringthedissertationwritingprocess.IwarmlythankBinnurÖktemÜnsalandBesimeŞenfortheiracademicsupportintherushtimesduringthewritingprocess.vInIthaca,myfriendsLesliePorterfieldandAbdurazackKarriemwereveryhelpfulinprovidingshelterandlogisticalsupportduringmynumeroustripstoIthaca.Withouttheirwarmfriendshipandwelcome,Ithaca’scoldweatherwouldonlybeadisastroussnowstormforme.Lastbutnotleast,Iamgratefultomyfamilyinkeepingtheirfaithonme.Myfather,HasanErbilandmymotherMahpeykerErbilalwaysencouragedmetopursuethisdegree.Mywife,AslıOğütErbil,hasalwaysbeenasupportiveandhelpfulinthewritingprocessofthisdissertation,withoutheritwouldbereallyhardtofinishitandmyson,HasanArdaErbil,thankyouforwaitingformetofinishthisprojecttoenjoythegamestoplayandtheparkstovisittogether.viTABLEOFCONTENTSPageBIOGRAPHICALSKETCHiiiACKNOWLEDGEMENTSvLISTOFFIGURESxiLISTOFTABLESxiiCHAPTERS1.0INTRODUCTION……………………………………………………..........11.1ResearchBackground.................................................................................11.2MainObjectives..........................................................................................21.3UnderstandingtheLimitationsoftheNISapproachinDevelopingCountries...................................................................................................61.4ResearchDesignandMethodofAnalysis..................................................91.4.1TheoreticalFramework....................................................................91.4.2MethodologicalApproach.............................................................101.4.3SelectionoftheCaseStudies........................................................111.5StructureoftheThesis..............................................................................142.0INNOVATIONANDDEVELOPMENTALDYNAMICS:SYSTEMSOFINNOVATION............................................................................................162.1Introduction..............................................................................................162.2TheoreticalPerspectivesonInnovation....................................................182.2.1Innovation:theSchumpeterianRevival........................................182.2.2TheResurgenceofEvolutionaryEconomics................................202.3InnovationandTechnologicalChange....................................................23vii2.3.1InnovationasanInteractiveProcess.............................................232.3.2KnowledgeCreation.........................................