chapter  5
Transforming Singapore’s Innovation System: An Analysis Using the Managerial Flow Model
ByPENGJI WANG AND ADRIAN T. H. KUAH
Pages 14

The national innovation system (NIS) is an evolving and closely embedded system involving private and public fi rms, universities, and government agencies to develop, diffuse, and exploit knowledge within a national context (Carlsson, 2006; Lundvall, 2003). Sweden and Germany have each created successful innovation systems; the Fraunhofer model in Germany involves 60 research institutes linked to a network of universities. The Fraunhofer system receives some 30% of funding from the state and 70% from industry and government contracts. Sweden is recognized as one of the top European Union (EU) countries in innovation. The Swedish RISE Holding AB is a holding company owned by the state and consists of umbrella research institutes that are externally funded.