however the innovation system is a broader concept also encompassing research and education systems government civil society and consumers the key aspects of innovation systems are the capabilities of these various actors the connections among them and the enabling environment for innovation that they create this includes a range of capabilities from absorptive capacity to assimilate existing knowledge and technology to the ability to engage in advanced rd and technological innovation firms capacities to introduce innovations in local national and international markets are a prerequisite for technological upgrading and improving a oountrys productive capacity