Modes, Fragmentation, and Inventor Agency: An Actor-Centered Analysis of Sri Lanka's Innovation System

This study investigates the dominant innovation modes and systemic structure of a lagging region by providing an actor-centered analysis of Sri Lanka's national innovation system. In contrast to innovation models derived from advanced economies, lagging regions often exhibit unique innovation dynamics. Analyzing 35 years of patent application data (1989–2023), we map the contributions of key actors—individual inventors, firms, universities, and government—to uncover the system's underlying structure. The findings reveal a dualistic and fragmented system. Domestic innovation is overwhelmingly driven by individual inventors, whose activities reflect a "Doing-Using-Interacting" (DUI) mode reliant on experiential and practice-based knowledge rather than formal research and development (R&D). This grassroots activity is disconnected from a corporate-led international system focused on market protection. A profound lack of collaboration among all actors highlights systemic fragmentation, constraining interactive learning and economic upgrading. Our analysis contributes to the literature by empirically demonstrating the prevalence of the DUI mode in a lagging region and provides policy insights, suggesting that support must be tailored to the system's actual, rather than assumed, innovation dynamics. JEL Classification: O31, O33, O10, O53