Abstract

The purpose of this research is to determine the advantages, disadvantages, opportunities, and threats of the innovative
model system (SWOT analysis) and its possible global uses. The authors studied five European case studies and analyzed
them based on a few key dimensions. The results have added useful new insights to academics and professionals interested
in systems innovation. The author concludes that the adaptation of the innovation system leads to 1) industrial network
2) policy decision platform, 3) high-tech innovation, 4) government as an active participant, 5) support economic growth.

Innovation combines the economic, social and institutional system

Literature review

Innovation systems are defined as a combination of
all factors that influence the development and use
of innovation, including economic, social, political,
organizational, and institutional aspects. Defining
the second innovation system for the development
of new technologies follows the government’s ship
policy to influence the process of innovation. As it
actively promotes policies to improve innovative
systems around the world, such as the US
organization UNCTAD, the World Bank, the IMF, and
the European organizations European Commission
and Organization for Economic Cooperation and
Development (OCED). The innovation is the main
aspect of the business innovation center (BIC) at
the innovation level as it supports start-ups and
helps accelerate their growth.
In addition, a study shows the characteristics of the
American national innovation system in the late 19th
and late 20th centuries: 1) there were no feudal trade
and investment barriers; 2) railroad infrastructure
allowed a very large national market to grow rapidly;
3) a scarcity of skilled labor led to the development
of machinery and capital-intensive technologies;
4) abundant national resources and a large scale
economy of investment and development; and 5)
large-scale production and mobile production are
typical American technologies.
British characteristics of innovation system in the
eighteenth and nineteenth centuries have reported
1) the close connection between scientists and
entrepreneurs, 2) science has become a national
institution promoted by the state, 3) the proprietor’s
contribution to the transportation infrastructure,
4) organizes associations to allow inventors to
raise funds and cooperate with entrepreneurs, 5)
the benefits of trade and services can be passed
through the country and local capital market gains.
6) Investment in industrial production; 7) economic
policies influenced heavily by classical economicsand industrialization interests; and 8) lowering or eliminating internal
and external trade barriers.
Finally, a set of studies demonstrated five main ideas regarding
innovation systems: the importance of the broader set of innovation
inputs, the importance of institutions and organizations, the role of
interactive learning, the role of interaction between agents, and the
role of social capital.

Methodology

Table 1 presents five European case studies: France, Spain, the
Netherlands, Luxembourg, and Portugal. These countries were chosen
because they are successful innovation centers in Europe. Five indicators
are used to evaluate the European case studies: first, the nature of
the legal status; second, target market; third, stakeholders; fourth,
entrepreneurship and faith, job creation. All standards depend on the
economic development of European countries. The S.W.O.T analysis will
be used to analyze each case study, describing its strengths, weaknesses,
opportunities, and threats. In short, S.W.O.T. discusses best practices
that lead to successful implementation.

Findings

From the analysis of case studies, the results of SWOT analysis of countries
in Europe may lead to the implementation of an innovation system on a
global scale as a powerful tool to promote economic development. Finally,
the entrepreneurial atmosphere supports the essential elements in the
entrepreneurial innovation process and creates the best environment
for entrepreneurs` growth. This is because the innovation system is
a potential tool for countries to formulate strategies from different
perspectives.
There are five strengths that can beconcluded as follows: 1) Industry
networking between academia and industry for mutual benefit and
interaction between the public and private sectors;2) Policy Decisions
Platform, which will serve as a platform for cross-national policy decision
sharing.3) high-tech innovation could hasten the modernization and
diversification of the region’s economy; 4) the government is an active
participant as a stakeholder in innovation firms, which leads to legal
status as a nonprofit organization and helps create the best environment
for businesses to start-up and grow; 5) to support the economy’s growth
with smart growth, which leads to a high rate of employment.
Moreover, there are three opportunities could be indicated :1) focuses
on the R&D and technological innovation are lead to knowledge transfer
activities, starting from the idea from innovation firm to be converted it
to innovated products and from innovated products to commercialization

or technology transfer wither from countries to countries or from
organization to organization; 2) a long-term strategic economic
development tool for the community, helping to diversify the economy,
and increase tax revenue; 3) entrepreneurial climate to support the
essential element in the innovation process the entrepreneurs and
to create the best environment for the growth of the start-up.
Furthermore, threats and weaknesses are the hardest to explore in
some respects. This is since the innovation systems are a potential tool
in the countries strategies form different perspectives and combine
all the elements effect have an effect on the development and use
of innovations such as economic, social aspect, political aspect, and
organizational aspect.

Conclusion

The innovation system combines economic, social, political,
organizational, and institutional aspects, and the development
and dissemination of a series of new technologies, in line with the
government`s policy of influencing the innovation process. All standards
depend on the economic development of European countries. Almost
all countries use innovation system as a tool for economic growth.
Adaptation of best practices and successful implementations leads to 1)
industry networks, 2) policy decision platforms, 3) high-tech innovation,
4) government as an active participant in stakeholders, and 5) support
for economic growth.
In conclusion, figure 1 presents a summary of the paper, which reflect
the innovation systems are used as powerful tools for economic growth
this evidence is from developed countries, such as the United States
and European countries.