The aim of the present work is to understand the dynamics of formation and of development for innovation systems in emerging nations. Adopting a deductive approach we define a new model to describe the configuration of innovation systems in developing countries. Subsequently, we use the model to examine the process of creating systems of innovation in the Emirate of Dubai. The analysis confirms that in developing nations there is a profound interaction between the systemic dimension and the firm dimension of the innovative process. The systems of innovation become such only at the end of a process: they originate as systems within individual firms to support the acquisition of technological knowledge, then become systems serving in the assimilation of the acquired knowledge, and only establish at the last as systems that actually aid the development of new awareness and give rise to innovation.
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