National System of Innovation

The National System of Innovation (NSI) is a network of knowledge-creating actors including firms, universities, research institutes, and government agencies. This concept, formalized by OECD（2002）, emphasizes that innovation is not just a firm-level activity but a systemic phenomenon. The institutional environment—including IP laws, education systems, and RTOs（Research and Technology Organizations）—determly the efficiency of knowledge-spillovers. In risk management, NSI represents the external environment's capability to support RTO activities. Unlike ISO 31000 which manages internal risks, NSI-related risks are systemic and require strategic positioning. Companies must evaluate the NSI of each market they enter to ensure the viability of their innovation investments. This is critical for compliance with international standards like ISO 56000, which requires organizations to manage innovation as a strategic capability rather than a series of ad-hoc projects.

Application of NSI in enterprise risk management involves three actionable steps: 1. Ecosystem Mapping: Identify key partners in the local NSI, including universities and research centers, to de — risk R&D uncertainty（ISO 56001:2019）。 2. External Risk Intelligence: Monitor national policies, standards-setting activities, and emerging regulations（such as the EU AI Act） to preemptively adjust RTO strategies. 3. Knowledge-Sharing Protocols: Establish formal agreements for technology transfer and co-development. For example, a Taiwanese electronics firm partnering with a university for AI research can reduce RTO costs by 30% and accelerate time-to-market by 20%. Success-indicators include the ratio of external vs. internal innovation-driven revenue and the number of collaborative research projects initiated annually.

Taiwan enterprises typically face three challenges: 1. Silo Mentality: Many firms operate independently of the broader NSI, missing opportunities for collaborative innovation. Solution: Establish formal RTO networks and participate in industry associations. 2. Regulatory Lag: Rapidly evolving international standards（such as AI governance and ESG reporting）create compliance risks. Solution: Designate a dedicated regulatory intelligence function within the risk management department. 3. Talent Scarcity: Competition for top-tier talent is intense. Solution: Partner with universities for talent pipelines and invest in continuous employee upskilling. The priority should be: Phase 1 (0-30 days) — Risk Assessment; Phase 2 (30-60 days) — Partner Identification; Phase 3 (60-90 days) — Pilot Collaboration. This structured approach ensures a 25% improvement in innovation efficiency within the first year.

Winners Consulting Services Co., Ltd. specializes in National System of Innovation for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact