Development of national innovation policy in small developing countries: the case of Cyprus

Abstract This paper analyses the concept of national innovation policy (NIP) and puts forward arguments supporting the need for a NIP for small developing economies like Cyprus. A brief outline is given of the science/technology infrastructure and current innovation related policies in Cyprus while the attitudes of owners/managers of private manufacturing firms towards these policies, based on a research survey, are examined. The survey reveals an ambivalent attitude towards NIP, which is probably due to unrealistic expectations, as well as, inefficiency in design and implementation of innovation policy measures. Case research confirms these conclusions and highlights the importance of NIP for private firms despite the rhetoric of their managers against it. The formulation of a specific NIP for Cyprus is then considered, from which lessons for other developing countries are drawn.

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