Original scientific paper
Institutional Prerequisites of Transition into Knowledge Economy: The Missing Link
Jadranka ŠVARC
Abstract
The main aim of the paper is to provide an alternative paradigm
of transition of the Croatian economy towards knowledge
economy, which is based on the concept of national innovation
system and innovation policy. Following this aim, the main
differences between the liberal neo-classical and evolutionary-
-institutional approach to technical change and economic growth
are discussed. The process of transformation of technical change
from an exogenous to endogenous phenomenon is explained as
well as the process of the emergence of the "new innovation
paradigm". It serves as an argument for considering economic
growth as a phenomenon deeply embedded in socio-cultural
and institutional context, and not the power beyond it. The role of
state, political elite and policy in general is emphasized as
essential for shaping economic growth. The paper claims that the
Croatian political and managerial elites are utterly deficient in
knowing how to initiate economic growth based on knowledge
since they neglect the importance of institutional and socio-
-cultural conditions of development. Their policy actions are
limited to the standard science policy instead of introduction of
the innovation policy. In order to prove the thesis, the critical
overview of the role of the Program HITRA, the first innovation
policy program in Croatia, is presented. The selected statistical
indicators to illustrate the main features of the Croatian
innovation and research system are also provided. The paper
concludes that so-called social ability for growth and political
learning is the basic mechanism for overcoming the current
institutional inertia. Those factors determine, also, the dynamics
of transition to knowledge economy.
Keywords
Croatian national innovation system; transition; knowledge society; institutional framework
Hrčak ID:
18277
URI
Publication date:
30.6.2006.
Visits: 2.722 *