Building systems of innovation in less developed countries: The role of intermediate organizations

Abstract

The aim of this paper is to discuss the role of intermediate organizations in supporting different forms of interactive learning and capability building in small scale business initiatives in emerging innovation systems in developing countries, using data from Tanzania and El Salvador. It is argued that different types of intermediate organizations have played key roles in linking marginalized economic actors, to sources of knowledge and other resources that are essential for capability upgrading and innovation in both traditional and more differentiated economic activities. They thus play an important role in linking innovative activity, to maintaining and upgrading the quality of existing jobs in crisis, generating new ones where opportunities arise, providing income crucial for family wellbeing in countries characterized by low levels of human development and high levels of inequality.The paper is structured as follows. After the introduction the concepts of systems of innovation, interactive learning and intermediaries in less developed countries are reviewed. This is followed by a presentation of the data and methodology, which is then analyzed in the following section. The paper ends with some conclusions on the role of intermediate organisations in linking actors, enabling technology and knowledge diffusion and building innovation systems in less developed countries.