The rise of the Neo-Schumpeterian economic thought in the economic development theories in the last two decades put the National Innovation Systems (NIS) approach to the agenda of developing countries. However, a proper consideration should be placed on the external and internal factors that affect the any given country?s capacity in adapting the proposed innovation policies. Thus, the formal innovation systems approach should be incorporated more directly with the studies on the social dimensions of the transition to new knowledge society without being trapped into technological determinism of the Neo-Schumpeterian approach.