How strong innovation systems affect strategic and operational planning

Modern society is characterized by rapid changes in different areas of life. Different stakeholders are investing efforts to manage processes of changes, to achieve development and benefits for the individual stakeholders and consequentially for the society. There are also efforts to harmonize and coordinate activities of different stakeholders to achieve the best results on the level of society. However, it is not easy. Therefore, plans are being prepared and implemented, with monitoring and evaluation, lessons learned and proposed adjustments. This points out that strategies and their implementation is considered important, taking into account that preparation of a strategy, as a specific plan, requires significant resources and that strategies are often prepared in various areas. At the same time, development requires ever new solutions and innovations are more and more often considered one of key, if not the most important, factors in development. This brings to questions about relations between strategies and innovations, how to plan interventions that foster innovations and what are specific aspects of such plans and their implementation.

The word strategy comes from military area and includes high-level goals and plans to achieve these goals, both resulting from strategic planning processes, while tactics is focused on engaging resources to achieve these goals on operational level. Innovation system, innovations ecosystem or national innovation system, whatever term is used and whatever level is observed, is a concept focusing on interactions among companies, education and research institutions/organizations and other stakeholders in introducing innovations.

In conditions of dynamic changes and more and more complex interactions in society, defining strategic goals is an extremely difficult task, since it focuses resources on certain areas thus bringing also risk of missing opportunities for achievements in other areas, so that it may or may not bring desired effects. There are different approaches applied in preparation of strategic plans, that include different analyses in introductory phases, different levels of participation of various stakeholders, and different structure of strategic documents. One of key differences is in the structure of strategic documents, i.e. how deep in details it goes in defining how strategic goals will be achieved. Some strategic documents give strategic goals and broad, but still precisely enough defined, directions, while other develop detailed operational plan, with interventions, resources, allocation of responsibilities and other details, including monitoring and evaluation mechanisms. Both, strategic goals and broad directions and operational details are needed for achieving the change. So, why is the structure of documents different?

Recently, I have participated in the study visit to Germany, Berlin area, where we had an opportunity to get acquainted with SME support mechanisms, in different areas. My impression was that state-level institutions define strategic goals and directions towards them, which are ambitiously and precisely defined (e.g. https://www.bmwi.de/Redaktion/EN/Publikationen/aktionsprogramm-zukunft-mittelstand.pdf?__blob=publicationFile&v=7 emphasizing importance of innovation networks or https://www.de.digital/DIGITAL/Redaktion/EN/Publikation/digital-strategy-2025.pdf?__blob=publicationFile&v=9 ), but operational planning, i.e. developing interventions that will ensure reaching these goals is left to other stakeholders, such as enterprises, educational and research institutions. Even programs that initiate movement towards desired goals, financially supported and monitored by the government, are administered by transparently selected and contracted private agencies. Documents on level of federal states contain more details (e.g. https://digitalesbb.de/wp-content/uploads/2019/08/190529_Broschüre_A4_Gesamtstrategie_web.pdf ), but still do not go into all details, such as identification of responsible stakeholders for implementation, financial values and sources of funding. So, higher levels of authorities define what to do, and other stakeholders provide ideas how to do it. On the other hand, strategic documents in BiH often contain detailed operational part, as defined by methodologies such as Standardized Methodology for Strategic Planning and Managing SME Development. Methodologies also suggest that strategic planning process should be followed by establishing structures and procedures for implementation. So, the strategic document not only defines what to achieve, but also how to do it.

What is the reason for this difference? Like in the military, commanders who have well-trained and equipped units have the luxury, so to speak, to define task and rely on lower levels of command for tactical application in the field (an approach well-known for a long time, applied by, for instance, Helmuth von Moltke the Elder). So, one of the reasons may be in availability of capacities and interactions. Namely, Germany has well-developed innovation system, with strong individual capacities of stakeholders and with developed interactions, both of which they are further developing. So, government can count on the innovation system to create solutions to reach defined strategic goals. They also have financial resources to support development processes identified as priorities. On the other hand, less developed countries do not have so well-developed innovation systems, neither from the point of view of individual capacities of stakeholders, that are often lacking resources, nor from the point of view of interactions. Therefore, stakeholders who develop strategic plan, in order to increase probability that it will be implemented and thus create desired change in reality, define all details they can, with precise descriptions and allocation of tasks and responsibilities. It is understandable, since it is less likely that concepts will come from stakeholders that still lack resources and from the environment with underdeveloped interactions. This approach may be necessary steppingstone in development of underdeveloped countries and their approach to innovations, since a number of interventions in strategies is focused exactly on developing capacities and interactions, thus creating conditions to engage wider circles of stakeholders in developing solutions for achieving strategic goals. This way, less developed countries are creating conditions for applying similar approach to the one currently applied by developed countries, thus enabling creative potentials of many to contribute to future development processes in economy and in social development in general.