Effectiveness and efficiency of national systems of innovation: A comparative analysis of Ghana and Kenya

This paper presents a comparative analysis of the determinants of the effectiveness and efficiency of the Ghana National System of Innovation (GNSI) and the Kenya National System of Innovation (KNSI) for crafting evidence-based policy. Two regression analyses are performed respectively on the level of innovativeness of business enterprises (BEs) (effectiveness) and of the strength of linkages between research institutes (RIs) and the production system (efficiency) using an array of independent variables culled from the national systems of innovation (NSI) literature. We find first that the effectiveness of the GNSI and KNSI are positively associated with actor linkages in both, and diffusion and capacity of ICT with respect to Ghana; the efficiency of the GNSI and KNSI are positively related to diffusion and rate of access to ICT and negatively to lack of finance with respect to Ghana, while negatively associated with actor linkages – i.e. government and arbitraguer linkages – with respect to Kenya. In both countries the strength of RIs linkages with the production system is a significant determinant of NSI effectiveness; and the level of innovativeness of BEs is a significant determinant of NSI efficiency.