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This paper presents the evolutionary meaning, rationale and context of institutions and the linkages that have been necessary to stimulate learning and innovation. Institutions and institutional change are central to driving learning and innovation. The processes of innovation do not end at the point of its creation. Linkages are important in the spread and diffusion of stocks of knowledge, which not only act as building blocks for new stocks of knowledge but also are synergized further through creative duplication and accumulation into new stocks of knowledge. Where linking with multinationals has fgured strongly leveraging has had a strong inï¬‚uence on upgrading. Also important has been the role of meso-organizations that were subject to stringent institutions
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