Learning by firms: the black box of South Africa's innovation system

South Africa designed its post-Apartheid science and technology policies in the mould of the national innovation system approach. Yet policymakers knew little about the determinants of technological upgrading in latecomer firms either in the developing world more generally or in South Africa specifically. These two blind spots made for a veritable black box hiding the engines of innovation. Policy was designed around this black box and was thus largely and by necessity borrowed rather than learned. This paper describes why this is a problem and what can be done about it.