The Use of Innovation Capability and National Innovation Systems in Promoting Sustainable Development : A Conceptual Analysis

The purpose of this paper was to examine the use of key activities of National Innovation System (NIS) and innovation capability of firms in promoting sustainable development. It addresses what institutional actors- government, universities/research institutions and private sector can do to generate key activities within NIS, which comprises of incubation activities, competence building, financing of innovation and consultancy services that may stimulates firm’s innovation capability. Exploratory research was used with the objective of examining insights from extant literature on innovation management, NIS and innovation capability and sustainable development. This study depicts that innovation capabilities may be influenced by key activities within NIS. It also shows that innovation capability dimensions such as strategy for innovation, idea management, idea implementation and creative self-efficacy may contribute to sustainable development. Furthermore, the best performing firms are classified as innovative and continually innovate in order to ensure sustainable development