2.a) Provide a definition of 'technological capability' and 'social capability' and describe the differences between them. Why can we say that innovation has a 'systemic' nature?

2.b) Financial development, social capital, favourable business regulation, trade openness are different aspects of 'social capability' influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development. Explain why 'inclusiveness' and 'equality in opportunities' can strengthen the innovation capability of an economy.