Research and technology organisations in national systems of innovation

Research on processes of innovation has emphasised the role of (publicly funded) research institutions (RTOs) as well as the embeddedness of innovation procedures in a systemic context. This paper deals with the changing contribution of RTOs to innovation systems due to the emergence of a highly differentiated service economy. It is part of a larger research project on the role of publicly and privately provided service functions in innovation. Changes in RTOs are analysed along two dimensions: the private / public dichotomy, and a knowledge generation / knowledge application trajectory. It is argued that the role of RTOs in national innovation systems can best be understood by complementing organisational and institutional approaches by a functional perspective. Innovation service functions are provided by RTOs and by other service suppliers, and they go beyond the traditional scope of RTOs as producers of R&D results. The flexibility of RTOs to adjust to the requirements of innovating firms will determine their chances to compete in newly emerging innovation services markets.