Globalisation and innovation systems: policy issues

Globalisation is an ill-defined and haphazardly used term that usually refers - with many differences of nuance and emphasis - to three related phenomena of the world economy at the present time. The first is the spread of neo-liberal economic doctrines and (to a lesser extent) practices. The second is increasing interdependence between economies in terms of demand patterns, productivity norms, production chains and innovation. The third is the spread of, or increased importance of, global economic institutions such as the International Monetary Fund (IMF), the World Trade Organization and specific agreements such as TRIPS or GATS. Closely related to this institutional element is the spread of large-scale regional economic integration, of which by far the most important example is the European Union (EU). However, the North American Free Trade Area (NAFTA), the Asia-Pacific Economic Cooperation (APEC) forum and Mercosur (South American regional trade agreement) are all significant.