THEORETICAL BASIS FOR AN ANALYSIS OF THE
Theoretical foundations of innovation
The concept of innovation holds significant importance when examining the analysis of the innovation ecosystem in Vietnamese enterprises Innovation is a multidimensional and dynamic process that encompasses the introduction of novel ideas, products, services, or approaches that create value and foster organizational growth and competitiveness.
According to the report “Understanding the Drivers and Dynamics of
Innovation Ecosystems.” Published by Journal of Innovation & Entrepreneurship,
Porter and Stern (2020), innovation is the outcome of a complex interplay between technology, market demand, and organizational capabilities It involves the application of knowledge, resources, and creativity to develop new or improved solutions that meet the evolving needs and preferences of customers It emphasize that innovation is not limited to technological advancements alone, but also includes process improvements, business model innovations, and strategic adaptations.
In the Vietnamese context, innovation in enterprises encompasses a broad spectrum of activities aimed at enhancing productivity, efficiency, and market differentiation It involves the development and adoption of new technologies, the implementation of novel business strategies, and the cultivation of a culture of continuous improvement.
“The National Strategy for Science, Technology, and Innovation Development 2021-2030”, published by the Ministry of Science and Technology (2020), defines innovation as the process of transforming scientific and technological knowledge into practical applications, leading to economic growth, social progress, and environmental sustainability.
Innovation is a multifaceted phenomenon that thrives within a supportive ecosystem This ecosystem comprises various stakeholders, including enterprises, research institutions, government agencies, investors, and customers, who interact and collaborate to facilitate the generation, diffusion, and adoption of innovative ideas and practices.
In summary, innovation can be defined as a dynamic process of creating and implementing new or improved ideas, technologies, products, services, and business models It is a crucial driver of economic and social development, requiring collaboration and interactions within an innovation ecosystem Understanding the concept of innovation provides a foundation for comprehending the complexities and dynamics of the innovation ecosystem in Vietnamese enterprises.
Innovation exhibits several key characteristics that shape its nature and impact within the context of the innovation ecosystem in Vietnamese enterprises. Understanding these characteristics is essential for analyzing the dynamics and implications of innovation processes.
Novelty: One fundamental characteristic of innovation is its novelty. Innovations bring something new and original to the market, whether it is a groundbreaking technology, a unique product, or a fresh approach to solving problems This novelty differentiates innovative enterprises from their competitors and enables them to create value and capture market opportunities.
Creativity and Imagination: Innovation stems from the creative and imaginative capacity of individuals and organizations to generate fresh ideas and unconventional solutions It involves thinking outside the box, challenging existing norms, and exploring alternative possibilities Creative thinking is a catalyst for driving innovation and fostering a culture of continuous improvement within Vietnamese enterprises.
Risk and Uncertainty: Innovation inherently entails risks and uncertainties.Ventures into uncharted territories and experimentation with new ideas and approaches involve a level of uncertainty about outcomes Enterprises need to embrace calculated risks and manage uncertainties to navigate the innovation landscape successfully Risk-taking and resilience are vital attributes for enterprises aiming to thrive in the innovation ecosystem.
Iterative and Iterative Process: Innovation is an iterative and iterative process that involves continuous learning, refinement, and adaptation It often requires multiple cycles of idea generation, prototyping, testing, and feedback to refine and improve innovative solutions Vietnamese enterprises need to embrace an iterative approach to innovation, allowing for flexibility and agility in response to evolving market dynamics.
Impact and Value Creation: The ultimate goal of innovation is to create value and make a positive impact Innovations should address customer needs, improve efficiency, enhance quality, and drive economic and social progress By delivering tangible benefits and outcomes, innovative enterprises can gain a competitive edge and contribute to the overall development of the Vietnamese economy.
Collaboration and Networks: Innovation thrives within collaborative networks and ecosystems Enterprises rarely innovate in isolation; instead, they actively engage in partnerships, collaborations, and knowledge sharing with other organizations, research institutions, suppliers, customers, and government agencies. These collaborative efforts foster a vibrant innovation ecosystem, where diverse stakeholders contribute their expertise and resources to drive innovation forward.
By understanding the characteristics of innovation, Vietnamese enterprises can develop strategies and initiatives to leverage their innovative potential and navigate the complexities of the innovation ecosystem Embracing novelty, creativity, risk-taking, iteration, value creation, and collaboration are key ingredients for fostering a culture of innovation and staying competitive in a rapidly changing business landscape.
1.1.3 The role of innovation in economic development
Innovation serves as a potent catalyst for economic growth, playing a pivotal role in propelling societies forward Vietnamese enterprises that embrace innovation contribute to the creation of new industries, products, and services By continuously introducing groundbreaking ideas, technologies, and business models, these enterprises stimulate investment, attract foreign direct investment, and generate employment opportunities This results in increased economic activity, leading to improved living standards, increased prosperity, and a more dynamic and resilient economy Moreover, innovation-driven economic growth is crucial for Vietnam transition from a developing to a developed nation It enables the diversification of industries, enhancement of productivity, and expansion of global market share By investing in research and development, fostering entrepreneurial talent, and promoting a supportive innovation ecosystem, Vietnam can position itself as a hub for innovation and technology-driven economic development.
Theoretical foundations of innovation ecosystem
The concept of the innovation ecosystem is central to understanding the dynamics and interconnections of various actors and factors that contribute to innovation and economic development An innovation ecosystem can be defined as a complex network of organizations, institutions, individuals, and resources that interact and collaborate to foster innovation and drive economic growth It encompasses both tangible and intangible elements, including physical infrastructure, research institutions, universities, government agencies, industry associations, venture capitalists, entrepreneurs, and skilled workforce The innovation ecosystem creates an environment that encourages the generation, diffusion, and application of knowledge, ideas, and technologies It facilitates the flow of information, resources, and expertise among its stakeholders, creating a fertile ground for innovation to thrive.
In an effective innovation ecosystem, collaboration and knowledge exchange are key drivers of success The ecosystem promotes partnerships and interactions between different stakeholders, fostering a culture of open innovation This collaborative approach enables the sharing of ideas, expertise, and best practices, allowing for the cross-fertilization of knowledge and the emergence of innovative solutions.
Chesbrough (2003), in his seminal work on open innovation, highlights the significance of collaboration in today's innovation landscape He emphasizes that companies should not rely solely on their internal R&D efforts but should also actively seek external ideas and pathways to market This approach aligns with the concept of open innovation, which emphasizes the importance of integrating external knowledge into an organization's innovation processes In the context of Vietnamese enterprises, open innovation practices within a supportive innovation ecosystem can lead to the rapid development and adoption of new technologies and ideas.
Moreover, the innovation ecosystem provides the necessary support mechanisms and resources to nurture entrepreneurship and innovation It offers funding opportunities, access to mentorship, incubators, and accelerators, and facilitates the commercialization of innovative ideas.
Etzkowitz and Leydesdorff (2000) introduced the concept of the Triple Helix model, which emphasizes the collaboration between academia, industry, and government in fostering innovation They argue that universities, businesses, and government agencies working together can create a synergistic environment that fuels innovation This model has relevance for Vietnamese enterprises as it underscores the importance of multi-stakeholder collaboration within the innovation ecosystem.
By creating an enabling environment that encourages experimentation, risk- taking, and learning from failures, the innovation ecosystem fuels the continuous generation and implementation of disruptive ideas, driving economic growth and competitiveness This aligns with Dosi's (1982) work on technological paradigms and trajectories, where he argues that innovation is a dynamic process characterized by the continuous emergence of new paradigms, technologies, and industries In such an environment, an innovation ecosystem that supports experimentation and adaptation becomes critical for enterprises to thrive.
The concept of the innovation ecosystem also recognizes the interconnectedness of various domains and sectors It acknowledges that innovation does not happen in isolation but requires a holistic and collaborative approach across academia, industry, government, and civil society Each sector plays a unique role in the ecosystem, with universities and research institutions generating knowledge and conducting cutting-edge research, an industry providing the necessary resources and market access, the government establishing supportive policies and regulations, and civil society fostering social innovation and inclusivity.
The symbiotic relationship between these sectors creates a synergistic effect, where the strengths of each sector are leveraged to address complex challenges, drive innovation, and propel economic development.
Understanding the concept of the innovation ecosystem is crucial for policymakers, business leaders, and other stakeholders involved in fostering innovation in Vietnamese enterprises By recognizing the interplay of various actors and factors within the ecosystem, they can design and implement targeted strategies and policies to strengthen the innovation ecosystem This includes creating an enabling policy environment, promoting collaboration and knowledge exchange, investing in research and development, fostering entrepreneurship and talent development, and building the necessary infrastructure and support mechanisms By nurturing a vibrant and inclusive innovation ecosystem, Vietnam can unlock its full potential, drive economic growth, and position itself as a leader in innovation-driven industries and technologies.
An innovation ecosystem is a complex and interconnected network of stakeholders that fosters the development and growth of innovation-driven activities within a particular region or industry It provides a supportive environment for entrepreneurs, researchers, investors, and other key players to collaborate, exchange knowledge, and transform ideas into tangible innovations Understanding the characteristics of an innovation ecosystem is essential for policymakers, business leaders, and researchers to create and nurture environments that foster innovation and drive economic growth This essay explores the key characteristics that define a vibrant and effective innovation ecosystem.
First, collaboration and connectivity: One of the fundamental characteristics of an innovation ecosystem is collaboration and connectivity among its stakeholders.Successful innovation ecosystems bring together entrepreneurs, researchers,investors, government agencies, and support organizations to facilitate effective communication, knowledge sharing, and joint problem-solving Collaboration enables the pooling of resources, expertise, and perspectives, leading to the development of innovative ideas and solutions It fosters a sense of community and synergy, creating an environment where partnerships and networks can thrive. Research by Dr Tran Van Hoa (2017) on "The Development of the Innovation Ecosystem in Vietnam" highlights the significant role of connectivity in promoting creativity and innovation This study demonstrates that connecting various components within the innovation ecosystem, such as entrepreneurs, researchers, investors, and governmental bodies, is essential for fostering innovation and driving economic growth The research emphasizes that creating an environment that encourages collaboration and knowledge exchange is crucial for the success of an innovation ecosystem.
Second, diversity and interdisciplinary: An effective innovation ecosystem embraces diversity and interdisciplinary It goes beyond the boundaries of specific industries or sectors and encourages the cross-pollination of ideas, skills, and expertise By bringing together individuals from diverse backgrounds, disciplines, and industries, an innovation ecosystem creates an environment where different perspectives can collide, leading to novel innovations and breakthroughs. Interdisciplinary collaboration fosters the exchange of knowledge, practices, and approaches, enhancing the overall capacity of the ecosystem to generate impact innovations.
Research conducted by Professor Nguyen Minh Thanh (2019) in the paper titled "The Role of Interdisciplinary in Fostering Innovation in VietnameseEnterprises" underscores the significance of diversity and interdisciplinary in driving innovation This study reveals that innovation ecosystems benefit immensely from the inclusion of individuals with varied backgrounds and expertise,leading to the emergence of innovative solutions that draw from multiple fields.Professor Thanh's research emphasizes that interdisciplinary collaboration enhances problem-solving capabilities, promotes creativity, and enables enterprises to address complex challenges effectively By fostering diversity and interdisciplinary,innovation ecosystems can maximize their potential to drive innovation and economic growth.
Third, supportive infrastructure: A robust innovation ecosystem requires a supportive infrastructure that enables the development and growth of innovative ventures This infrastructure includes access to research and development facilities, incubators and accelerators, funding mechanisms, intellectual property protection, regulatory frameworks, and supportive government policies Physical and virtual infrastructure that facilitates knowledge exchange, resource sharing, and access to markets and customers is essential A well-developed ecosystem infrastructure provides entrepreneurs and innovators with the necessary support and resources to navigate the challenges of the innovation journey.
Dr Mai Anh Tuan study (2020), titled "Enhancing Infrastructure for Innovation: A Catalyst for Vietnamese Enterprises," highlights the critical role of supportive infrastructure in fostering innovation Dr.Tuan research emphasizes that infrastructure elements such as research and development facilities, technology incubators, and access to funding are fundamental pillars of a thriving innovation ecosystem These components provide innovators and entrepreneurs with the tools and resources necessary to transform ideas into viable products or services. Moreover, a conducive regulatory environment and strong intellectual property protection are crucial for incentive innovation and safeguarding the interests of innovators Dr.Tuan findings underscore that a well-developed innovation infrastructure accelerates the innovation process, driving economic growth and competitiveness in Vietnamese enterprises.
Fourth, entrepreneurial culture and mindset: A thriving innovation ecosystem nurtures an entrepreneurial culture and mindset among its participants It encourages individuals to take risks, embrace failure as a learning opportunity, and exhibit resilience in the face of challenges An entrepreneurial culture fosters an environment where innovative ideas are valued, and the pursuit of entrepreneurship is encouraged It promotes an ecosystem-wide mindset that embraces change,creativity, and continuous improvement An ecosystem that cultivates an entrepreneurial culture attracts and retains talent, encourages the creation of new ventures, and stimulates economic growth.
The world experience in developing innovation ecosystem on enterprises
1.3.1 Status of an innovation ecosystem in the world
Innovation ecosystem in enterprises has been promoted by many countries in the world and in the region in recent years The Covid 19 pandemic has highlighted the inevitability of this trend In fact, the digital innovations that could have taken place in the next 10-20 years have been "compressed" in the past two years Many businesses that are quick and responsive to digital transformation have created a very clear gap with those that have not or are slow in the digital transformation process.
Specifically, according to a survey by Accenture in 2021, if the gap in growth rate between leading enterprises (Leaders) and lagging enterprises (Laggards) in
2019 is only 2 times, then in 2021 that distance has increased 5 times (Figure 4) It can be seen that businesses that know how to apply advanced technology earlier have the opportunity to make greater strides, catch up with development trends and create new values
Figure 1.1 The gap between leading and lagging enterprises
The demand for company digitalization and digital transformation is more important than ever The awareness of the necessity for investment to expand technological participation in product creation, manufacturing and operation processes, and so on is spreading to and changing all industries and all types of businesses The victor of the 4.0 race will be determined by speed and consistency in action Here are some innovation trends that worldwide enterprises mostly use:
Table 1.1 Innovation trends that worldwide enterprises mostly use
Innovation Investment in Description trends 2022
With capabilities of AI, companies of all sizes can use data to obtain insights that
Applied allow them to automate business operations and make better decisions According to Artificial
McKinsey 2021 global survey on AI, up to Intelligence
165 billion USD 56% of organizations have applied AI, up
(AI) from 50% in 2020 Besides, the survey has also shown that applying AI provides organizations and businesses with financial benefits
The latest connectivity technologies and protocols (such as 5G/6G mobile networks) provide better data transmission, wider bandwidth, wider geographic coverage, less
Advanced latency, and lower power consumption This
Connectivity 166 billion USD innovation will enhance the consumer experience and increase productivity in industries such as Mobility, Healthcare and Manufacturing.
The cloud platform, built from “super- speed” data centers, provides and enables massive compute and storage capacity, and is connected by a fast, high-capacity
Cloud and network that enables a wide range of edge 136 billion USD services to vastly expand and diversify. computing Continuous integration will allow users to extend the speed and quality of the cloud to other systems which accelerates innovation, enhances productivity, and generates business value.
Web3 includes platforms and applications that enable change towards a decentralized internet future with open standards and protocols while protecting digital property, Web3 110 billion USD providing users with increased ownership of their data and promote new business models.
Trust This technology enables organizations to architectures manage the risks that come from technology and digital 34 billion USD and data, which help them accelerate identity innovation and protect assets In addition, building trust in data and governance of technology can enhance organizational performance and improve relationships with customers and partners.
Immersive reality technology uses spatial
Immersive computing to simulate the world in a different way and allow people to interact in reality 30 billion USD that virtual world Different levels of technologies immersion are provided by technologies such as augmented reality (AR), virtual reality (VR), and mixed reality (MR).
Industrialization of machine learning (ML) involves creating an interoperable engineering tool to automate machine learning and scale its use so that organizations can utilize its full potential. Machine learning tools can help companies transition from pilot projects to viable business products, resolve modeling errors Industrializing in production, and overcome capacity and machine 5 billion USD productivity limitations Experience has learning shown that organizations that has succeeded in industrializing machine learning can shorten production time frames by 90% (from concept to product) and reduce development resources by up to 40%.
Quantum technology makes it possible to Quantum 3 billion USD perform complex calculations much faster than classical computers, helps to change technologies connections and make them more secure, and also allows for significant improvements in sensor sensitivity
These technologies are transforming the
Next- capabilities of engineers at every stage of the software development lifecycle (SDLC)— generation from planning and testing to deployment and software
2 billion USD maintenance—and enabling more and more development non-technical employees can create applications.
1.3.2 Actual situation and experience of developing innovation ecosystem on enterprises in some countries around the world
The development of innovation ecosystems varies across countries, with each nation adopting unique approaches and strategies to foster a conducive environment for innovation within enterprises There are some actual situations and experiences of selected countries in developing their innovation ecosystems:
The United States has long been recognized as a global leader in innovation. The country innovation ecosystem is characterized by a strong emphasis on collaboration between industry, academia, and the government Major technology hubs such as Silicon Valley, Boston, and Seattle have emerged as epicenters of innovation, attracting top talent and fostering a culture of entrepreneurship The presence of renowned research universities, access to venture capital funding, and a supportive regulatory framework have contributed to the success of the U.S. innovation ecosystem.
Apple is a prime example of an enterprise that has flourished within the U.S. innovation ecosystem The company success can be attributed to its continuous focus on product innovation, design excellence, and seamless integration of hardware, software, and services Apple ability to leverage collaborations with suppliers, developers, and partners within the ecosystem has enabled it to deliver groundbreaking products such as the iPhone, iPad, and Mac The company ecosystem-driven approach has created a loyal customer base and contributed to its market leadership in the technology sector.
Germany is known for its robust innovation ecosystem, particularly in advanced manufacturing and engineering sectors The country has a strong focus on research and development (R&D) and has established close partnerships between industry and academia The German model emphasizes the importance of long-term investments in technology development and innovation Collaborative networks known as "innovation clusters" bring together companies, research institutions, and government agencies to drive innovation and knowledge transfer This ecosystem has facilitated the country leadership in areas such as automotive engineering,industrial automation, and renewable energy technologies.
Siemens, a multinational conglomerate, has capitalized on Germany innovation ecosystem to drive technological advancements The company strong ties with research institutions and universities have fostered collaborations in fields like energy, automation, and digitalization Siemens has leveraged the German ecosystem focus on engineering excellence and industrial innovation to develop groundbreaking solutions in areas such as smart grids, renewable energy, and industrial automation The company ability to tap into the expertise and resources within the ecosystem has positioned it as a global leader in various industries.
Israel is renowned for its thriving start-up ecosystem, often referred to as the
"Start-up Nation." The country has successfully fostered an environment that encourages entrepreneurship and innovation Israel innovation ecosystem is driven by a combination of factors, including a strong emphasis on research and development, government support through funding programs and incentives, a vibrant venture capital community, and a culture that values risk-taking and innovation The presence of specialized technology incubators and accelerators has played a crucial role in nurturing early-stage ventures and facilitating knowledge exchange.
ANALYSIS OF THE INNOVATION ECOSYSTEM IN
Overview of innovation ecosystem in Vietnamese Enterprises
In recent years, Vietnam has gained significant recognition for its remarkable accomplishments in the field of innovation, positioning itself as an emerging powerhouse in Southeast Asia Esteemed international organizations have applauded Vietnam prowess in innovation, solidifying its reputation as a frontrunner in the region Notably, Vietnam innovation ecosystem experienced a transformative period from late 2019 to early 2020, marked by heightened interest from both domestic and foreign investors, as well as venture capital funds This can be substantiated by the remarkable surge in investment deals during 2021, reaching a record-breaking 165 deals, representing a substantial 57% increase compared to the previous year.
Figure 2.1 The Innovation Support Organisations in Vietnam sorted by
Sources: Vietnam Institute of Science Technology and Innovation surveyed in the years 2021 and 2022
The figure above shows that companies in the technology industry are the ones that promote the most use of the innovation ecosystem It is also easy to understand because inherently the basic foundation of innovation comes from Technology. Following are enterprises in the fields of Agriculture, manufacturing, services and finance, respectively.
The total venture capital investment poured into Vietnam amounted to an impressive US$1.4 billion, nearly tripling the investment figures of the preceding year Moreover, early-stage deals garnered an average value of approximately US$1.15 million, while medium and late-stage deals commanded an average value of US$9.5 million This influx of foreign investment capital injected into Vietnamese technology startups has presented promising opportunities while simultaneously imposing formidable challenges, as startups are now expected to perform and fulfill the expectations of their investors Consequently, it is imperative to provide comprehensive and adequate support throughout the entirety of a enterprise journey, encompassing capital fundraising and subsequent growth stages.
It is crucial to comprehend that securing capital is merely the initial step, as sustaining operational efficiency post-investment plays a pivotal role in cultivating international recognition and fostering trust within Vietnam Innovation ecosystem. Regarding geographical distribution, Ho Chi Minh City and Hanoi maintain their positions as two major centers for business development Impressively, approximately 50% of the newly established enterprises in 2022 chose to locate in these prominent cities, underscoring their significance and appeal for entrepreneurial ventures.
In the latest Global Innovation Index (GII) ranking of 2022, published by theWorld Intellectual Property Organization (WIPO), Vietnam has been ranked 48th out of 132 countries and economies This represents a decrease of four places compared to the 2021 ranking However, Vietnam still holds the second position among 36 low-middle-income economies, relinquishing the top spot to India.
Table 2.1 Global Innovation Index 2022 rankings
GII Ranks Economy Score Region rank
Sources: Global Innovation Index Database, WIPO (2022)
The GII serves as a tool for measuring, evaluating, and ranking national innovation outcomes It is calculated based on the average value of two sub-indices. The innovation input sub-index assesses the factors within an economy that enable and facilitate innovation activities This sub-index is divided into five pillars: Institutions, Human capital and research, Infrastructure, Market sophistication, and Business sophistication The Innovation Output sub-index, on the other hand, recognizes the tangible results of innovative activities within the economy and is categorized into two pillars: Knowledge and technology outputs, and Creative outputs The GII plays a significant role in the state management of science, technology, and innovation, as well as in formulating mechanisms and policies to promote socio-economic development based on science, technology, and innovation.
In terms of innovation efficiency, which reflects the relationship between income level (GDP per capita) and innovation performance (GII index), Vietnam has exhibited an innovation performance that exceeds expectations in comparison to its GDP growth rate Vietnam has also achieved a remarkable feat by consistently outperforming its development level in the GII index for 12 consecutive years.WIPO recognizes Vietnam as having the fastest rate of catching up with innovation among the group of low-middle-income economies, second only to India Vietnam consistently scores above the average for the lower-middle-income group in all GII pillars and even occasionally exceeds the average for the middle-income group of Southeast Asia, East Asia, and Oceania, particularly in the Creative outputs pillar. However, there are still limitations in the Human capital and research index that require attention.
In 2022, Vietnam experienced a drop of four places in the overall GII ranking compared to the previous year This decline can be attributed to significant decreases in two specific indexes: Market sophistication, which fell by 21 places, and Knowledge and Technology outputs, which dropped by 11 places Additionally, the GII results highlight the areas where Vietnam needs to focus its efforts, particularly in the development of Human capital and research, which are ranked at
80 and 71 out of 132 countries, respectively.
After consulting and analyzing many well-known and trusted sources of research information and reports, author has compiled the top Four Business Priorities that enterprises all around the world have shifted, are shifting and need to shift their focus onto in 2022 and the years to come to promote the sustainable development of their businesses as well as the global economy
* Climate change & Carbon emission reduction
Climate change is currently one of the greatest threats against humanity and requires urgent action Prioritizing climate goals not only helps avoid and mitigate risks but also allows businesses to seize opportunities and become the front runner in the transition to a Net- zero World Large companies are preparing themselves to be able to reduce 30% of their CO2 emissions by 2030 and to completely eradicate them by 2050 The potential value of Green businesses is estimated at $4,000-5,000 Billion by 2030 in Asia alone.
Developing Employee Retention Strategies to attract and retain talent is now an important mission to maintain competitiveness and survive the pandemic.Businesses are defining Employee Experience more clearly as the prerequisite foundation for Customer Experience, which determines the success of the business
* Enhancing and reinforcing the effectiveness of the value chain
Due to the COVID-19 crisis, fundamental changes in consumer behavior, supply chains, and in market access routes are throwing companies off balance. Responding to the pandemic has highlighted the need for leaders to accelerate the adoption of flexible working practices and transform the value chain to help navigate uncertainty.
*Digital transformation and increasing the participation of technology
The need for digitization and digital transformation of companies is more pressing than ever Awareness of the need for investment to increase participation of technology in product development, production and operation processes, etc is spreading to and shaping all fields and all types of companies Speed and consistency in action will determine the winner of the 4.0 race.
The aforementioned findings underscore the significance of maintaining innovation within business practices and the market development level to ensure the sustainable growth of the Innovation ecosystem To sustain the attractiveness,dynamism, and innovativeness of Vietnam innovation ecosystem, it is crucial for all stakeholders within the ecosystem to collaborate closely and maximize their potential This cooperation should extend to every level, ranging from educational institutions and the business environment to policy-making and society as a whole.
The situation of developing the innovation ecosystem in Vietnamese
2.2.1 Actual situation of digital technology application in Vietnamese enterprise from 2020 to 2022
While COVID-19 has been the headline since late 2019, other recent profound economic shifts still warrant mention and consideration Vietnam has become the destination of multiple supply chain and manufacturing relocations, due to strong economic fundamentals and a favourable investment environment when compared with neighbouring markets Vietnam still recorded a total new, adjusted capital and share purchases by foreign investors reached $31.15 billion as of December 20 2021, up 9.2% annually As of June 20, 2022, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached over $14.03 billion, equivalent to 91.1% over the same period in 2021.
Figure 2.2 Newly-established enterprises and total registered capital in 2020-
Sources: National Business Registration Portal (Ministry of Planning and Investment) (2022)
According to data provided by this figure, in 2022, there was a significant upsurge in the establishment of fresh enterprises, surpassing the figures observed in previous years The recorded count of newly formed businesses amounted to 112,791, indicating a substantial rise compared to the corresponding period in preceding years Notably, this represented a remarkable growth rate of 31.95% in comparison to 2021 and a notable increase of 13.98% when contrasted with the corresponding period in 2020 Moreover, there was a modest recovery in the overall registered capital, which experienced a decline during the initial nine months of 2021.
According to the assessment of the Annual report of business transformation
2022 of the Ministry of Planning and Investment, the following 08 key technologies are evaluated as the most effective in developing the innovation ecosystem for Vietnamese businesses:
First, mobile internet: Mobile internet in Vietnam has promoted the adoption of new business models such as the app economy, OTT (over-the-top) services, e- commerce,and mobile commerce (m-commerce)
Second, cloud computing: refers to the provision of information technology (IT) resources over the Internet Cloud computing technology allows individuals and organizations to access technology services such as superior computing power, data storage and management tools whenever needed Buying, owning, and maintaining physical servers and data centers may not be cost-effective, especially for micro, small, and medium-sized businesses.
Third, big data: Big data, and its analysis, refers to the ability to analyze extremely large volumes of data, yielding insights from which to take action – usually in real time For example, predictive analytics can help employees and businesses analyze customer preferences more effectively to increase customer satisfaction.
Fourth, artificial intelligence: AI refers to the ability of software or hardware to exhibit human-like intelligence This requires a set of technologies that enable computers to perceive, learn, reason, and support decision-making to solve problems in a manner similar to what humans do Examples of AI applications include virtual assistants, self-driving vehicles, and voice recognition tools
Fifth, financial technology (Fintech): Fintech is a tool to promote the financial services sector by facilitating deposit and payment, so that customers have more convenient access to products, services, and services services of enterprises, contributing to the growth of many industries and sectors in the economy (for example, retail).
Sixth, Internet of Things (IoT): is a network of physical objects embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the Internet IoT has a number of applications across areas with significant economic potential such as the development of wearable devices that can help monitor and maintain health; energy consumption can be monitored and optimized in the building; Equipment use can be optimized, the performance and safety of the plant improved.
Seventh, advanced robotics: Compared with conventional robots, advanced robots have superior perception, integration, adaptability, and mobility In manufacturing, for example, advanced robots can increase productivity and flexibility throughout the factory and supply chain, while allowing manufacturers to quickly adjust to changing customer needs row.
Eighth, additive manufacturing: Technologies that build 3D objects by adding layers of materials There are many potential benefits, such as the ability to handle complex, low-volume components where fast turnaround rates are critical.
Table 2.2 The Development Stages of the Innovation ecosystem in Vietnamese enterprises
Awareness Stage Preparation Stage Action Stage Innovation Results
Understand the Innovation Enterprises invest New products are concept of ecosystem is in R&D activities the result of innovation integrated into in combination innovation ecosystem and corporate strategy with external ecosystem recognize its resources importance
Enterprises are Business leaders Enterprises The new process is aware of the role have a vision for participate in the result of and importance of innovation activities innovation each actor in the ecosystem associated with ecosystem innovation research institutes ecosystem /universities/ technology fairs to exchange knowledge/ informationEnterprises realize Enterprises build Enterprises hand Revenue generated their benefits when company culture in problems to by innovation being an active line with Startup to solve ecosystem participant in the innovation and co-create innovation ecosystem with Startup ecosystem and/or invest in
The staff has the Enterprises have a Enterprises invest knowledge & skills corporate structure in facilities for to apply innovation to accommodate innovation ecosystem innovation ecosystem ecosystem (Innovation ecosystem Center, Open Lab, Enterprise challenge introduction platform, etc.)
Enterprises promote communication activities related to Innovation Open inside and outside them
Large enterprises and corporations are recognized as highly capable entities to engage in the innovation ecosystem These organizations possess key success factors, including robust financial resources, expansive market reach, strong brand reputation, and exceptional research and management teams Within the ecosystem,they assume the role of facilitators, actively contributing to its development and sustainability They accomplish this by establishing investment funds for startup projects, providing funding to specific startup initiatives, and sharing their knowledge and experience with the startup community In addition to generating value for society, large enterprises and corporations assume the role of problem owners within the innovation ecosystem While they may propose solutions from within their own operations, they also recognize the potential for faster, disruptive, and more promising solutions from other actors in the ecosystem, particularly startups This symbiotic relationship leads to mutually beneficial outcomes for both sides, creating a win-win scenario.
2.2.2 Readiness for the innovation ecosystem in Vietnamese enterprises
The digital economy hits $23B in 2022 and is on course for ~$50B by 2025; the region fastest- growing market due to a booming e-commerce sector.
Figure 2.3 Vietnam digital economy (in USD billion)
Source: Google, Temasek and Bain & Company (2022)
According to StartupBlink, Vietnam has enough growth momentum to surpass the current position of Thailand if it still maintains the growth of the ecosystem.Hanoi and Ho Chi Minh City are definitely the driving force behind Vietnam innovation ecosystem in the future Vietnam innovation ecosystem has growth potential, mainly due to the size of the economy, which helps enterprises succeed even if they don not expand into the international market.
Analysis of the innovation ecosystem in Vietnamese enterprises
The innovation ecosystem in Vietnamese enterprises is characterized by several key strengths that contribute to its resilience, competitiveness, and potential for growth These strengths serve as foundations for fostering a thriving environment of innovation and driving positive outcomes The following are notable strengths of the innovation ecosystem in Vietnamese enterprises:
One of the strengths of the innovation ecosystem in Vietnamese enterprises lies in the strong entrepreneurial spirit and the flourishing start-up culture The country has witnessed a significant rise in the number of innovative start-ups, driven by ambitious and visionary entrepreneurs This dynamic landscape fosters a culture of risk-taking, innovation, and agile thinking, allowing enterprises to experiment with new ideas and business models.
Another key of the innovation ecosystem in Vietnamese enterprises is the presence of a skilled and talented workforce Vietnam has made substantial investments in education and vocational training, resulting in a large pool of technically competent professionals across various domains These skilled individuals bring diverse expertise, creativity, and problem-solving capabilities to the innovation ecosystem, driving the development of innovative solutions and products.
Vietnam's strategic geographical location contributes to the development of its innovation ecosystem Situated in Southeast Asia, Vietnam serves as a bridge between regional and global markets Its proximity to major economies, such as China and India, along with its participation in international trade agreements, opens doors to a vast network of resources, collaborations, and market opportunities for Vietnamese enterprises.
The strength of the innovation ecosystem in Vietnamese enterprises is further bolstered by supportive government policies Recognizing the crucial role of innovation in driving economic growth and competitiveness, the Vietnamese government has implemented policies and initiatives to nurture the ecosystem. These include research and development grants, tax incentives, technology incubators, and regulatory reforms aimed at creating an enabling environment for enterprises to innovate and flourish.
The Vietnamese government places a high value on enterprise science and technology development, viewing it as one of the pillars for long-term economic growth and increased competitiveness in the context of globalization and the FourthIndustrial Revolution The government has given instructions and implemented numerous laws, rules, and initiatives to assist innovation over the years, includingProject 844, which aims to establish a conducive climate for innovation in Vietnam.Furthermore, in 2022, the government released a policy aimed at improving the business environment, increasing national competitiveness, and implementing a science, technology, and innovation development strategy.
Table 2.4 Summary of Government Policy to promote innovation ecosystem in enterprises 2022
- Investment in science and technology reaching 1.2% - 1.5% of GDP
Decision 569/QD-TTg of - The Global Innovation Index (GII) constantly improving, among the top 40 countries in the world the Prime Minister promulgating the strategy - Human resources for scientific research and for science, technology technology development (full-time conversion) development and reaching 10 people per 10,000 people innovative transformation - Having 25 - 30 science and technology until 2030 organizations ranked regionally and globally, by
- By 2030, the number of enterprises meeting the criteria of science and technology enterprises and the number of innovative business doubling that of 2020; the rate of enterprises with innovative activities reaching 40% of the total number of enterprises
- The number of international publications increasing by an average of 10% per year
By 2025, strive to rank competitiveness as follows:
- The GII constantly improving, among the top 40
Resolution 02/2022/NQ- countries in the world.
CP of the Government on - Competitiveness 4.0 belonging to the Top 50 the main tasks and Countries solutions to improve the business environment and enhance national competitiveness in 2022
-Sustainable Development in the Top 40 Countries
-Innovation Capacity in the Top 40 Countries
-E-Government belonging to the Top 60 countries
-Logistics efficiency increasing at least 4 levels
-Cybersecurity increasing by at least 3 ranks
-Tourism competitiveness in the Top 50 countries
- Property rights (of the Property Rights Union) belonging to the Top 60 countries
Source: The Vietnam Open Innovation Ecosystem Report (2022)
Collaboration and knowledge sharing form a cornerstone of the innovation ecosystem in Vietnamese enterprises Industry associations, research institutions, universities, and government agencies actively foster collaboration between academia, businesses, and other stakeholders This collaborative approach facilitates the exchange of ideas, expertise, and resources, fostering innovation through shared knowledge, joint research projects, and technology transfer.
The increasing of the innovation ecosystem in Vietnamese enterprises is also augmented by the development of digital infrastructure and increased connectivity. Vietnam has made significant strides in expanding its digital infrastructure, ensuring widespread availability of high-speed internet and growing mobile penetration rates. This digital foundation provides Vietnamese enterprises with the means to embrace emerging technologies, such as artificial intelligence, big data analytic, and the IoT, enhancing their innovation capabilities and competitiveness.
Vietnamese enterprises face challenges in accessing sufficient capital to support their innovative projects and initiatives The availability of venture capital,angel investors, and other sources of funding is often limited, which hampers the growth and scalability of innovative ventures The lack of adequate financial resources can impede the development and implementation of groundbreaking ideas and technologies.
Intellectual property rights (IPR) protection in Vietnam still faces weaknesses, leading to concerns over the safeguarding of innovative ideas and technologies The inadequate enforcement of IPR laws and regulations increases the risk of intellectual property infringement and unauthorized use, deterring enterprises from investing in research and development The lack of robust IPR protection mechanisms undermines the incentives for innovation and limits the ability of enterprises to fully capitalize on their intellectual assets.
Vietnamese enterprises often face challenges in allocating adequate resources to research and development activities Despite efforts by the government to promote R&D, investments in this area remain relatively low Insufficient funding for R&D limits the capacity of enterprises to conduct in-depth research, develop cutting-edge technologies, and bring innovative products and services to the market. This hampers the competitiveness and long-term sustainability of Vietnamese enterprises in the innovation landscape.
The innovation ecosystem in Vietnamese enterprises is characterized by fragmentation and limited collaboration among different stakeholders There is a lack of effective coordination and synergy among academia, industry, government, and financial institutions The absence of a cohesive ecosystem hinders the seamless flow of knowledge, resources, and expertise needed for innovation This fragmentation diminishes the collective impact and effectiveness of the ecosystem, making it challenging to foster a thriving environment for innovation.
Vietnamese enterprises often face challenges in integrating with global innovation networks and tapping into international markets and opportunities WhileVietnam has made progress in terms of international trade and economic integration, there is room for further integration within the global innovation landscape Strengthening international partnerships, collaborations, and knowledge exchange can provide Vietnamese enterprises with access to global markets, technologies, and best practices Enhancing international integration can foster the growth, competitiveness, and exposure of Vietnamese enterprises to global trends and innovations.
SOLUTIONS TO PROMOTE THE INNOVATION
Policies and regulations to develop the innovation ecosystem in
One significant policy is the National Strategy for Science, Technology, and
Innovation Development 2021-2030, formulated by the Ministry of Science and
Technology This strategy sets out a comprehensive roadmap to guide and support the advancement of science, technology, and innovation in the country It emphasizes the importance of research and development, technology transfer, and building innovation capacity across sectors.
To operationalize the strategy, the government has launched the Vietnam
Innovation Ecosystem Development Program 2021-2025, led by the Ministry of
Planning and Investment This program aims to create a vibrant and dynamic innovation ecosystem by fostering collaboration among research institutions, enterprises, and startups It promotes the establishment of incubators, science and technology parks, and innovation hubs to facilitate knowledge sharing, networking, and entrepreneurial activities.
The Ministry of Industry and Trade has also introduced initiatives to enhance the innovation capacity of Vietnamese enterprises Their strategic roadmap for enhancing innovation capacity focuses on upgrading infrastructure, promoting the adoption of advanced technologies, and nurturing an innovation culture within organizations Additionally, the ministry has facilitated the development of sector- specific innovation clusters and encouraged collaboration between domestic and international partners.
In terms of financial support, the government has implemented various mechanisms to incentivize innovation This includes tax incentives for research and development activities, grants and loans for innovation projects, and the establishment of venture capital funds to provide funding for startups and high- potential enterprises These financial measures aim to alleviate the financial burden associated with innovation and provide a conducive environment for enterprises to invest in research, development, and technology adoption.
Overall, these policies and regulations demonstrate the government commitment to promoting innovation and driving the growth of the innovation ecosystem in Vietnamese enterprises By fostering collaboration, providing financial support, and creating a favorable business environment, the government aims to propel the country towards a knowledge-based economy, improve competitiveness, and position Vietnam as a regional innovation hub.
Recommendations to improve the innovation ecosystem in Vietnamese
3.2.1 Strengthening Financial Support for Innovation ecosystem
One crucial aspect of enhancing the innovation ecosystem in Vietnamese enterprises is to strengthen financial support for innovation Access to adequate funding plays a vital role in enabling enterprises to invest in research and development, technology adoption, and innovation activities To achieve this, the following recommendations can be considered:
Firstly, in pursuit of a more robust innovation ecosystem within Vietnamese enterprises, the government plays a pivotal role in bolstering financial support mechanisms It is imperative for the government to institute dedicated funding programs meticulously tailored to cater to the nuanced needs of innovation in Vietnamese enterprises These initiatives may encompass the establishment of innovation funds, the provision of grants, and the offering of subsidies designed to span the entire spectrum of the innovation process, from the inception of novel ideas to their eventual commercialization The injection of financial resources into these innovative endeavors functions as a potent incentive for enterprises to proactively channel their investments into research and development, the acquisition of cutting- edge technologies, and the exploration of untapped market prospects These funding programs should judiciously prioritize projects demonstrating the highest potential for catalyzing profound economic transformations, spearheading technological advancements, and showcasing scalability in diverse market landscapes.
For instance, the implementation of targeted funding programs has yielded noteworthy success in spurring innovation in countries such as Singapore and South Korea Singapore's Research, Innovation, and Enterprise (RIE) framework, initiated in 2006, has significantly propelled the nation's innovation landscape by allocating substantial financial resources to research and development endeavors, technological initiatives, and the nurturing of a vibrant startup ecosystem Similarly, South Korea's extensive support for innovative startups through initiatives like the Korea Seed & Venture Capital Business Association (KSVCA) and government- backed venture funds has accelerated the country's technological innovation and global competitiveness.
Furthermore, academic research underscores the pivotal role of tailored financial support in enhancing innovation ecosystems Studies by authors like Chesbrough (2003) and Berman (2012) emphasize that fostering innovation requires substantial financial backing to drive research, development, and technology adoption Government-led funding mechanisms are acknowledged as critical catalysts for innovation (Ministry of Science and Technology, 2020) by incentive enterprises to embark on research- intensive projects with trans formative potential (Nguyen Thanh Hien & Le Quang Trung, 2021) These initiatives contribute not only to economic growth but also to the creation of a conducive environment for innovation to flourish (Ministry of Industry and Trade, 2022) By prioritizing and nurturing such projects, the Vietnamese government can invigorate its innovation landscape and position the nation as a regional powerhouse in innovation-driven growth.
Secondly, nurturing robust public-private partnerships represents a pivotal stride towards fortifying financial support for innovation endeavors The synergy derived from the collaborative efforts of the government, financial institutions, and private investors galvanizes a diverse array of funding channels This harmonious alliance beckons venture capital firms, angel investors, and corporate investment entities to proactively immerse themselves in championing innovative enterprises. Such collective commitment not only bridges the funding chasm but also inundates innovative endeavors with the vital infusion of capital essential for their scaling and expansion.
The significance of public-private partnerships in propelling innovation is vividly exemplified in the experiences of countries like the United States The Small Business Innovation Research (SBIR) program in the U.S fosters collaboration between federal agencies and innovative small businesses Through this initiative, startups and small businesses secure funding to spearhead cutting-edge research and development projects Similarly, the Corporate Innovation Program in Singapore is an exemplary model where the government partners with leading corporations to co- invest in innovative projects and foster the growth of a vibrant innovation ecosystem.
Academic scholarship accentuates the transformative potential of public- private partnerships in the realm of innovation Porter and Stern (2020) underscore how these collaborations catalyze innovation ecosystems by facilitating knowledge exchange, promoting networking, and nurturing mentor ship opportunities among stakeholders The exchange of ideas, resources, and expertise in such partnerships kindles a crucible of innovation that accelerates the growth of startups and bolsters the resilience of enterprises (Davenport and Kirby, 2022) These synergistic alliances forge a fertile landscape for innovative ventures to thrive within the ever- evolving innovation ecosystem.
Thirdly, fostering innovative financing mechanisms, such as crowdfunding and peer-to-peer lending platforms, can democratize access to funding for businesses and contribute to strengthening the innovation ecosystem These alternative financing models harness the transformative potential of technology and collective engagement to seamlessly connect investors with pioneering projects.Through these platforms, a wider pool of potential backers can participate in fueling innovative initiatives, fostering a sense of collective ownership and shared success.
Nonetheless, to ensure the responsible growth of these financing avenues, creating a supportive regulatory framework and robust investor protection measures is paramount Governments and financial authorities must strike a balance between encouraging innovation and safeguarding investors from potential risks Lessons can be drawn from regulatory approaches in countries like the United Kingdom, where the Financial Conduct Authority has implemented a regulatory sandbox for fintech innovations This framework allows businesses to test new financial products and services within a controlled environment, fostering innovation while preserving consumer protection.
Furthermore, financial institutions should take the initiative to design tailored financial products and services that align with the unique needs of innovative enterprises This encompasses the provision of flexible loan structures, venture debt financing, and revenue-based financing options that resonate with the inherent risks and growth trajectories of innovative ventures Encouragingly, some forward- thinking banks have already ventured into this territory, offering innovative startups tailored financial solutions that enable them to thrive.
Incentivizing banks and financial institutions to allocate a dedicated portion of their lending portfolios specifically for innovation-focused enterprises can further amplify financial support This proactive step aligns with the growing recognition of innovation as a catalyst for economic growth and job creation By developing specialized financial products and services, financial institutions not only mitigate the perceived risks associated with innovation projects but also foster an ecosystem where enterprises can readily access the capital necessary to propel their innovative ideas forward.
Lastly, improving financial literacy and awareness among entrepreneurs and innovators is crucial Many enterprises may lack the necessary knowledge and skills to navigate the complexities of fundraising and financial management.Implementing training programs, workshops, and mentorship initiatives to educate entrepreneurs on financial planning, investment strategies, and valuation techniques can empower them to make informed decisions and attract investment By equipping innovators with financial acumen, they can effectively communicate their ideas, demonstrate the potential return on investment, and secure the necessary funding to turn their innovations into reality.
By strengthening financial support for innovation, Vietnamese enterprises can overcome one of the significant barriers to realizing their innovative potential. Adequate funding not only fuels research and development efforts but also enables the scaling up of successful innovations, fosters entrepreneurship, and drives economic growth With a supportive ecosystem that provides access to financial resources, Vietnamese enterprises can thrive in their pursuit of innovation and contribute to the overall advancement of the nation economy.
3.2.2 Enhancing Human Capital and Skills Development
Developing a highly skilled and adaptable workforce is crucial for fostering an effective innovation ecosystem in Vietnamese enterprises By prioritizing human capital development and skills enhancement, enterprises can leverage the knowledge, expertise, and creativity of their employees to drive innovation The following recommendations aim to enhance human capital and skills development within the Vietnamese context:
Firstly, there is a need to align educational curricula with the evolving demands of the innovation-driven economy Collaborations between educational institutions and industry stakeholders can facilitate the design and implementation of programs that equip students with the necessary knowledge and skills for innovation This includes incorporating entrepreneurship, critical thinking, problem- solving, and digital literacy into the education system Internship programs, apprenticeships, and industry partnerships can provide practical exposure and real- world experience, bridging the gap between academia and industry Additionally, promoting interdisciplinary education and multidisciplinary collaboration can foster a holistic approach to innovation and equip students with the ability to connect ideas across different fields.
Strategies to promote the innovation ecosystem in Vietnamese
3.3.1 Prioritizing and Sequencing the Recommendations
Promoting the innovation ecosystem in Vietnamese enterprises requires a strategic approach to prioritize and sequence the recommendations outlined in the previous sections The interconnected nature of these recommendations necessitates careful planning to allocate resources effectively and ensure a coordinated implementation In this section, we delve into the strategies that can be employed to prioritize and sequence the recommendations, paving the way for a systematic and impactful transformation.
To begin with, assessing the readiness and feasibility of each recommendation is essential This entails evaluating the current state of the innovation ecosystem in Vietnamese enterprises, identifying strengths and weaknesses, and gauging the available resources and capabilities A comprehensive assessment enables policymakers to prioritize recommendations based on their potential impact and the feasibility of implementation within the specific context of Vietnam By strategically allocating resources, policymakers can focus on initiatives that promise significant returns and are viable in the given circumstances.
Setting clear strategic goals and objectives for the development of the innovation ecosystem is a pivotal step in the prioritization process These goals should align with the broader national innovation agenda while considering the unique needs and aspirations of Vietnamese enterprises By defining strategic goals, policymakers can prioritize recommendations that directly contribute to achieving these objectives, ensuring a focused and targeted approach This strategic alignment enables the initiatives to have a meaningful impact on the overall innovation landscape, driving sustainable growth and competitive advantage.
Another critical consideration in prioritizing and sequencing the recommendations is recognizing the interdependencies among them Some recommendations may act as foundational elements or prerequisites for others, creating a logical sequence of initiatives For instance, strengthening financial support for innovation may lay the groundwork for enhancing human capital and skills development By identifying these interdependencies, policymakers can ensure a cohesive and coherent implementation plan, where the successful execution of one recommendation sets the stage for the next This sequential approach maximizes the effectiveness and impact of the initiatives.
Engaging relevant stakeholders is vital in the prioritization process Involving government agencies, industry associations, research institutions, and enterprises brings diverse perspectives, expertise, and knowledge to the table Through collaborative discussions and consultations, policymakers can gain insights into the priorities and preferences of different stakeholders, fostering a sense of ownership and commitment to the chosen initiatives By including stakeholders in the decision- making process, the prioritization efforts become more comprehensive and inclusive, resulting in recommendations that resonate with the needs of the stakeholders and the broader ecosystem.
Resource allocation and timelines should also be considered when prioritizing recommendations Some initiatives may require significant financial investments or long-term planning, while others can be implemented in the short term with existing resources Policymakers need to balance the need for immediate impact with long- term sustainability By carefully evaluating resource availability and timelines, policymakers can devise a realistic and achievable implementation plan that maximizes the impact of the chosen initiatives, ensuring optimal use of available resources.
Furthermore, it is imperative to establish monitoring and evaluation mechanisms to assess the progress and impact of the implemented initiatives. Regular monitoring enables policymakers to track the effectiveness of the prioritized recommendations and make data-driven decisions on adjusting priorities and redirecting resources as needed This iterative process ensures that the prioritization remains dynamic and adaptive, reflecting the evolving needs and dynamics of the innovation ecosystem Continuous monitoring and evaluation foster a culture of learning and improvement, enhancing the effectiveness and relevance of the chosen initiatives over time.
3.3.2 Engaging Stakeholders and Building Partnerships
Engaging stakeholders and building partnerships is a key strategy to promote the innovation ecosystem in Vietnamese enterprises The success of any innovation- driven initiative relies on the active participation and collaboration of various stakeholders, including government agencies, industry players, research institutions,and civil society In this section, we delve into the importance of stakeholder engagement and explore strategies for fostering partnerships to drive innovation and create a supportive ecosystem.
First and foremost, engaging stakeholders is essential to gain diverse perspectives, insights, and expertise Each stakeholder group brings unique knowledge and experiences to the table, and their collective involvement ensures a holistic understanding of the challenges and opportunities within the innovation ecosystem By actively involving stakeholders in the decision-making process, policymakers can tap into their insights and leverage their expertise to inform policy formulation and implementation This participatory approach fosters a sense of ownership and shared responsibility among stakeholders, driving their commitment to the success of the innovation ecosystem.
Collaborative partnerships play a crucial role in advancing innovation in Vietnamese enterprises Building strategic alliances with industry players, research institutions, and academia can create synergies and promote knowledge exchange. These partnerships enable enterprises to access cutting-edge research, technology, and expertise, fostering a culture of innovation and continuous learning By connecting enterprises with the broader ecosystem, partnerships facilitate the flow of resources, ideas, and opportunities, unlocking the potential for collaborative innovation initiatives Such partnerships can also lead to joint research projects, co- development of new technologies, and shared investment in innovation activities, enhancing the competitiveness of Vietnamese enterprises.
Furthermore, stakeholder engagement and partnerships facilitate the co- creation of policies and programs that reflect the needs and aspirations of the innovation ecosystem By involving stakeholders in policy development processes,policymakers can gather valuable insights and feedback, ensuring that the proposed initiatives align with the real-world challenges and opportunities faced by enterprises This participatory approach enhances the relevance and effectiveness of policies, making them more responsive to the evolving dynamics of the innovation ecosystem Engaging stakeholders in the policy-making process also cultivates a sense of ownership, increasing the likelihood of successful implementation and sustainability.
In addition to stakeholder engagement, international collaboration is crucial for the advancement of the innovation ecosystem in Vietnamese enterprises. Partnering with other countries and participating in global innovation networks allows for knowledge sharing, benchmarking best practices, and accessing global markets International collaboration provides opportunities for Vietnamese enterprises to learn from the experiences of other countries, gain exposure to new technologies and business models, and expand their networks Through joint initiatives, exchange programs, and technology transfer, Vietnamese enterprises can enhance their competitiveness and position themselves as key players in the global innovation landscape.
To foster stakeholder engagement and build effective partnerships, a supportive framework and platforms for collaboration must be established This includes creating platforms for dialogue, knowledge-sharing, and networking among stakeholders, such as innovation forums, industry associations, and innovation clusters These platforms provide spaces for stakeholders to connect, collaborate, and collectively address challenges and opportunities Policymakers can also play a facilitative role by creating incentives, funding mechanisms, and policy frameworks that encourage stakeholder engagement and foster partnership formation.
3.3.3 Establishing Monitoring and Evaluation Mechanisms
Establishing monitoring and evaluation mechanisms is a critical strategy for promoting the innovation ecosystem in Vietnamese enterprises Effective monitoring and evaluation enable policymakers and stakeholders to assess the progress, impact, and effectiveness of innovation initiatives, identify areas for improvement, and make informed decisions In this section, we delve into the significance of monitoring and evaluation and explore strategies for establishing robust mechanisms to track the performance of the innovation ecosystem.
Monitoring the performance of the innovation ecosystem involves systematically collecting and analyzing relevant data and indicators to track the implementation of policies, programs, and initiatives It provides policymakers with real-time information on the progress, challenges, and outcomes of innovation- driven activities Through monitoring, policymakers can identify bottlenecks, gaps, and emerging trends, allowing them to take timely corrective actions and allocate resources strategically Monitoring also enables the identification of successful practices and initiatives that can be scaled up or replicated to maximize the impact of the innovation ecosystem.