Innovation Policy

Author(s):  
Susana Borrás ◽  
Charles Edquist

This chapter develops the core of the argument regarding the specific assumptions and theoretical propositions about the role and limits of innovation policy. The theoretical basis for the holistic approach to innovation policy proposed in this book is built from a broad version of the systems of innovation approach and the identification of the concrete policy problems that afflict the innovation system, including the unintended consequences of policy. Following from that, the chapter argues that most innovation policies across countries are still partial, not holistic; that innovation policy must be separated from research policy; and that innovation policy-learning can only take place using an analytical model that helps understanding what worked, how, and why.

Author(s):  
Susana Borrás ◽  
Charles Edquist

This chapter comes to grips with the nature of innovation and systems of innovation. It identifies ten specific activities that define systems of innovation. The ten activities are specific elements directly related to the performance of innovation, that collectively shape the way in which innovation takes place in an innovation system. We call this a ‘systems activities approach’, and it is a broad version of the systems of innovation approach. These activities are partly performed by private organizations and partly by public organizations. The theoretical basis for innovation policy proposed in this book is built from the identification of the concrete problems (failures, bottlenecks, weaknesses, etc.) that afflict innovations and their determinants in systems of innovation, including those problems that might be the unintended consequences of policy itself.


Author(s):  
V. Pchelintsev

The paper examines governmental strategies, main actors and instruments of innovation policies shaping innovation-driven economy in Finland, with particular attention to the regional scale. The analysis focuses on how the regional innovation systems approach became a framework for the design of innovation policies. An innovation system involves cooperation between firms and knowledge creating and diffusing organizations, – such as universities, colleges, training organizations, R&D-institutes, technology transfer agencies. Innovations are considered as interactive learning process. Cooperation and interaction between regional/local and national/international actors is necessary to combine both local and non-local knowledge, skills and competences. The key elements of the policy environment, as well as implementation of the main regional innovation policy instruments – the Centers of Expertise Programme and Regional Centre Programme – are described.


Author(s):  
Susana Borrás ◽  
Charles Edquist

Who produces scientific and technical knowledge these days? What type of knowledge is being produced, and for what purposes? This chapter studies the role of public policy in knowledge production (especially R&D activities) relevant for the innovation process from a perspective of innovation systems. It identifies four typical policy-related obstacles and barriers related to knowledge production in an innovation system. Next, it elaborates a set of overall criteria for the selection and design of relevant policy instruments addressing those unbalances. Most importantly, the chapter argues that in most countries innovation policy continues to be subsumed under research policy. An holistic and problem-oriented innovation policy requires that innovation policy and research policy are separated from each other in the design phase—but it must be ensured that they support each other when implemented (in the same way as many other policy areas have to be coordinated with each other).


2019 ◽  
Vol 8 (2) ◽  
pp. 272-292
Author(s):  
Allison Bramwell ◽  
Nicola Hepburn ◽  
David A. Wolfe

Purpose The purpose of this paper is to illustrate experimentation over time in Ontario, Canada with place-based innovation policies to support the development and coordination of entrepreneurial ecosystems on a regional basis across the province. Design/methodology/approach Tracing the policy learning process and successive adaptations in program design over time, the authors provide a detailed case study of the evolution of the Ontario Network of Entrepreneurs (ONE) from 2003 to the present. Findings The authors find that the program has evolved in response to regular program reviews that include broad input from ecosystem actors operating at multiple levels within the network, and that intermediaries are key facilitators of inter- and intra-ecosystem linkages. However, program complexity and coordination challenges suggest that place-based innovation policies, such as the ONE, should focus specifically on innovation-intensive entrepreneurship. Research limitations/implications These findings make three contributions to the theory and practice of place-based innovation policy. First, these policies are by nature experimental because they must be able to flexibly adapt according to policy learning and practitioner input from a wide variety of local contexts. Second, multilevel interactions between provincial policymakers and regional ecosystem actors indicate that place-based innovation policy is neither entirely driven by “top down” policy, nor “bottom up” networks but is rather a complex and variable “hybrid” blend of the two. Finally, publicly funded intermediaries perform essential inter- and intra-ecosystem connective functions but system fragmentation and “mission creep” remain enduring policy challenges. Originality/value The paper makes an original contribution to the literature by analyzing the development of entrepreneurial policy support framework and situating the case study in the context of the policy learning process involved in place-based innovation policymaking in North America.


2020 ◽  
Vol 12 (6) ◽  
pp. 2562
Author(s):  
Caiyan Jia ◽  
Xiaoyun Tang ◽  
Zhehan Kan

To maintain sustainable economic growth, China has created a national innovation system (NIS) and strengthened the central status of firms. Our data show that the effect of turnover growth in small and medium-sized enterprises (SMEs) on China’s aggregate Gross Domestic Product (GDP)growth is significant, but the status of SMEs in the NIS and related policies is not significant. To determine whether there is a correspondence between the sustainability of innovation in SMEs and the support of China’s NIS, we developed a framework for China’s innovation policy under the NIS framework, taking into account its transition characteristics, to examine the texts of SME innovation policies and reveal the sustainability of SMEs’ innovation. The relevant national government policy texts were collected from the yearbooks of Chinese SMEs between 1999 and 2017 and government notices between 1994 and 2017. On this basis, we also compared with some other countries’ innovation systems. The findings indicate that China’s NIS pays little attention to the sustainability of SMEs’ innovation activities for two reasons. First, the scope of the NIS is very narrowly defined. Second, the top-down, government-oriented Research and Development (R&D) system that focuses on large state-owned firms leaves little room for innovation policies in SMEs.


2020 ◽  
Vol 2 (1) ◽  
pp. 34-48
Author(s):  
Yongfei Jia ◽  
Chang Liu ◽  
Chong Yin ◽  
Qing Zhu

PurposeUnder the background of economic and technological globalization, all countries will pay attention to science and technology innovation policies. At this time, the era of innovation policy plays an important role. In order to thoroughly implement the spirit of the 19th National Congress of the Communist Party of China, earnestly innovate development concepts and strengthen the key supporting role of scientific and technological innovation for social development.Design/methodology/approachThe research will make an in-depth study on the policy of scientific and technological innovation, take the change trend of the number of laws and regulations and the analysis of the basic content as the entry point, and classify it from five different aspects, such as the policy of scientific and technological system and mechanism, the policy of financial guidance, the policy of technological innovation of enterprises, the policy of scientific and technological talents, and the policy of intellectual property.FindingsThrough the comparison of the development history of science and technology policies at home and abroad, the development history of science and technology innovation policies under the special national conditions of China is obtained. Combining with the relevant basic theories of science and technology innovation system, designing from the publishing department, main content, and implementation subject, constructing a synergistic science and technology innovation system of “government, industry, university and research,” and forming an “integration of supply and demand” technology innovation framework will guide the development of China's science and technology innovation in the future.Originality/valueThe authors construct the policy framework of science and technology collaborative innovation based on the concept of science and technology innovation policies. The framework has realistic significance for its future development.


Author(s):  
Susana Borrás ◽  
Charles Edquist

This book is about holistic innovation policy: its theoretical foundations, its problem-oriented approach, and its instrument choices. We start with the observation that most of the current innovation policies are not holistic because they only focus on a few determinants of innovation processes. This book provides a theoretically anchored foundation for the design of holistic innovation policy by identifying the core policy problems that tend to afflict the activities of innovation systems, including the unintended consequences of policy itself. This is a necessary stepping stone for the identification of viable, relevant, and down-to-earth policy solutions. The book also offers a critical analysis of policy instruments and their choice in innovation policy design. It is not a ‘recipe’ nor a ‘how-to’ guide. Instead, it provides analytical depth and substantial considerations about the ways in which policy might be providing solutions to problems in systems of innovation. After introducing its conceptual framework about innovation and innovation policy, the book delves into the following areas of innovation policy-making: knowledge production and research and development; education, training, and skills development; functional procurement as demand-side; change of organizations through entrepreneurship and intrapreneurship; interaction and innovation networks; changing institutions and regulations; and the public financing of early stage innovations. Its critical and novel perspective serves policy-makers, scholars, and anyone interested in the design of innovation policy. The summary chapter (Chapter 12) can be read independently of the rest of the book.


2013 ◽  
Vol 20 (2) ◽  
pp. 258-274 ◽  
Author(s):  
Markku Sotarauta ◽  
Kati-Jasmin Kosonen

This paper poses the question of whether innovation policies are customized to meet the varying needs of different regions and industries. The research questions are: (a) are the investigated innovation initiatives context sensitive and customized to the prevailing innovation problems and, hence, to what extent do they focus on overcoming specific bottlenecks in the particular regional innovation system and address system failures hampering innovation; (b) have innovation policies aiming to support specific industries recognized the differences and, if yes, have they been customized accordingly? The paper discusses emerging forms of local/regional innovation policy using, as cases in point, Finland and especially two different industries (intelligent machinery and digital content services) in three different kinds of regional innovation system. The empirical research is based on data gathered (a) through 40 interviews with Finnish innovation policy makers and (b) through 91 structured interviews with firm representatives; (c) in addition, interview data from another study with 53 national-level innovation policy makers are exploited. The empirical analysis shows that, in spite of a shared understanding about the generic principles of the innovation policy and the investigated local/regional policy, initiatives are clearly customized to serve the current challenges of the specific regions and industries.


Systems ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 38
Author(s):  
Raquel Balanay ◽  
Anthony Halog

This systematic review examines the importance of a systems/holistic approach in analyzing and addressing the footprints/impacts of business-as-usual activities regarding the development of a circular economy (CE). Recent works on why current CE approaches have to be examined in terms of reductionist vs. systems perspectives are reviewed to tackle questions pertaining to the right or the wrong way of CE implementation. ‘Doing the right thing right’ is essential for sustainability—the ultimate goal of a CE, which must be viewed as a system to begin with. The limited reductionist approach overlooks and thus cannot prognosticate on the formidable unintended consequences that emerge from ‘doing the right things wrong’, consequences that become too costly to undo. The systems approach, being holistic, is complicated and difficult to pursue but open to exciting opportunities to integrate innovations in CE analysis and implementation. Complexity is an inherent downside of the systems approach. However, both approaches are complementary, as reductionist models can be combined to create a system of comprehensive analysis to correct the approach towards implementation of current CE initiatives. This review reports that advancements in systems analytical frameworks and tools are highly important for creating general guidelines on CE analysis and implementation.


2013 ◽  
Vol 216 ◽  
pp. 896-919 ◽  
Author(s):  
Sebastian Heilmann ◽  
Lea Shih ◽  
Andreas Hofem

AbstractMany studies raise doubts about the effectiveness of the institutions, programmes and instruments that shape the Chinese national innovation system. This article scrutinizes central–local interactions in the national Torch Programme that has governed a large group of high-technology zones since 1988. The Torch Programme's procedural practices challenge widely shared assumptions about the dirigiste character of Chinese innovation policy. It combines centralized definition of programme objectives with extensive local implementation experiments. As three case studies demonstrate, bottom-up policy innovations are effectively fed back into national programme adjustments and into horizontal policy diffusion. The array of organizational patterns and promotional instruments that emerges from competitive “experimentation under the shadow of hierarchy” (ESH) goes way beyond what could have been initiated from top down. We hypothesize that the procedural strengths displayed in the Torch Programme may provide better indicators of future innovative potential in China's high-technology zones than retrospective statistical indices and benchmarks that are derived from OECD experience.


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