Ecosystems of open innovation: their applicability to the growth and the development of economies within small countries and regions

Introduction In essence this chapter addresses what Oughton, Landabaso and Morgan (2002) call the ‘regional innovation paradox’. The innovation paradox refers to the concept whereby it is clear that certain regions and small countries need to invest heavily in R&D, innovation and the commercialisation of research if they are to close the income and wealth creation gaps compared to ‘wealthier’, ‘more sustainable’ regions and countries; however, these regions and countries do not have the capacity nor capability to effectively manage such investments. This may be due to a lack of experience and/or being at a stage of development whereby neither the region’s or small country’s enterprise and innovation policies nor infrastructures are conducive to effectively utilise investments geared for R&D, innovation and the commercialisation of research. Specifically, from a regional perspective the innovation paradox often exists as the result of centralised government and policies and/or a country’s economy being dominated by an advanced and well performing capital city, large urban area(s), or region(s) that overshadow(s) weaker and underperforming regions (O’Gorman 2005).