Answer TWO (2) Questions. Each Question is worth 30 marks (60 Marks Total). Describe the ‘national systems of innovation’ model of entrepreneurship and innovation. Compare and contrast this with...

Answer TWO (2) Questions. Each Question is worth 30 marks (60 Marks Total).

1. 
   

   Describe the ‘national systems of innovation’ model of entrepreneurship and innovation. Compare and contrast this with Schumpeter’s concept of ‘creative destruction’. Highlight the main differences between the two approaches. Which is more relevant for policy makers today? Justify your answer.

   
   


2. 
   

   Describe Perez’s model of technological, financial and institutional systems coevolution. What does Perez mean by the terms (a) ‘irruption’ and (b) ‘turning point’? Discuss the roles of the principal agencies (individuals, firms, institutions, government, etc.) driving or being influenced by change during (a) an ‘irruption’ and (b) a ‘turning point’? Illustrate your answer with a straightforward case example.

   
   


3. 
   

   Outline and discuss the arguments for and against the propositions that (a) innovation is a gradual cumulative process, and (b) innovation is a punctuated cumulative process. Can both proposals be correct? Support the theories you employ with illustrative case examples.

   
   


4. 
   

   You have been appointed to the position of economic growth advisor to Newlandia, a country of about 60 million inhabitants on the eastern seaboard of tropical South East Asia. The country possesses a geographically average range of natural resources. Average per capita income is US $7,200 per annum. The government budget for new and established industries is therefore limited. Legal, banking and other institutions function imperfectly. Some business and government corruption is present. Median citizen age is 23 years and average educational attainment is eleven years of schooling. The country has three mid-rated technology universities of reasonable size. Ten percent of university graduates can speak conversational business English. Few graduates leave to work overseas and even fewer return to Newlandia after that.

   
   

   The Newlandian government wants you to advise it on establishing an internationally competitive computer game development industry that will be self-sustaining after seven years.

   
   

   Basing your answer on concepts covered in this course, what are your most important priorities and practical recommendations? Support your advice with theory.