|Innovation System Function||Relevant Dimensions||Innovation Diplomacy Actions (examples)|
|1. Entrepreneurial discovery||Capacity to turn potential of new knowledge, technology, networks, and markets into business opportunities.||
Support industry in development of (global) innovation networks, value chains, etc.|
Promote and protect national champion projects and industries.
|2. Knowledge development||Institutions and resources for education, skills development and research (universities, research facilities). Including less formal learning such as “learning by doing”.||
Support international collaborative research and education.|
Access to strategic research facilities.
|3. Knowledge diffusion through networks||Maximise the effects of new knowledge, feed policy processes for standards and regulation.||
Support development of an innovation culture.|
Develop strategy for inclusion/exclusion (e.g. non-proliferation for security reasons).
|4. Guidance of the search||Selection of specific foci for investments in STI. Building the long-term vision. Identifying needs and wants. Priority setting. Mostly done between different types of actors in a country, region or hub.||
Identify potential collaborators and competitor’s strategies.|
Develop position and strategy for common or global challenges.
Develop vision and strategy for national strengths.
|5. Market formation||
Create or support (public) demand (e.g. favourable tax regime, innovative procurement).|
Create a (protected) space for testing, piloting and possibly niche markets.
Strategies to improve access to foreign markets for innovative products/services:|
- Import/export tariffs
- Innovation mercantilism
- Room for experimentation (legal and regulatory conditions)
|6. Resources mobilisation||Capital availability in different stages of innovation. Human resources (including foreign specialists).||
- Access to Public Private Partnerships|
- Exchange programs
- Special mobility and tax-rules for knowledge workers.
|7. Creation of legitimacy; fighting resistance to change||Build coalitions. How to deal with vested interests and frictions of transition? Is new legal framework required?||
- Policy consistency (e.g. GMOs)
- Responsible Research and Innovation rules