Persistent Developmental Limits to Devising Policy Innovation for Innovation Policies in Emerging Economies

Promising industrial profiles of Southeast Asian emerging economies have met their developmental limits in the face of the Asian Financial Crisis in the late 1990s. However, following the crisis, they have not been successful in upscaling the technological competitiveness of their industries. By applying the national innovation system approach originally developed in advanced western economies as an institutional mechanism of policy innovation in light of developmentalism, I seek to explain these persistent developmental limits in Malaysia and Indonesia. My qualitative research examines literature discussing policy coordination mechanisms in innovation policies and policy documents containing coordination mechanisms involving firms, universities, and government agencies; then, how these issues implicate innovation policies in the two countries. I employ a comparative institutional analysis between them focusing on institutional characteristics of the national innovation systems, specifically their institutional obstacles occurring within development paths amidst prevailing political environments. I suggest that persistent developmental limits in Malaysia and Indonesia result from systemic failures of achieving developmental aims regardless of their politico-administrative regimes. Existing institutional frameworks of the national innovation systems, entrenched in the socio-economic prevalence of the two countries, have not fit the nations’ developmental aims pursued upon innovation upgrading.

Upgrading Institutional Capacities in Innovation Policy in Chile: Choices, Design, and Assessments

Innovation is crucial for development. A set of institutional capacities and coordinated actions between the public and private sectors are required to drive large mission-oriented innovation policies (MOIPs) to address priority issues and set a direction for the path of development. This work identifies what restrictions exist in institutional and policy capacities that hinder the design and implementation of MOPs in Chile. This work is based on a case study design. The study analyzes the design and implementation of two strategic programs for innovation and development in the solar energy and mining sectors. The study showed that the capacities of the programs analyzed were evident in the construction of a shared vision and the identification of innovation-led solutions for the development of the two sectors, but the lack of leadership from the government hinders the implementation of the programs, particularly because of the lack of coordination between government agencies and ministries for budget allocation and strategy definition.

The Frontier of Macroeconomic Modelling: Proceedings of the JRC-IEA Workshop 2017

This chapter discusses the Proceedings of the JRC-IEA Roundtable, which objective was to promote a technical debate on the recent developments of DSGE and alternative modelling strategies, the main mechanisms at play and their effectiveness in assessing the impact of R&D and innovation policies. Leading academics presented state-of-the-art macroeconomic models in the area of economic growth and innovation. It follows a debate between academics and practitioners trying to figure out the key elements of a macro model designed to evaluate innovation policies should include.

The QUEST III R&D Model

This chapter provides a description of the QUEST III model, with a special emphasis on its innovation mechanisms, and offers an example of its application to the analysis of the impact of innovation policies in the EU. In particular, the results of the simulations of an ex-ante impact assessment of Horizon Europe Framework Programme 2021–2027 are presented and discussed.

Other Innovation Policies and Alternative Modelling Approaches

This chapter discusses the macroeconomic impact evaluation of other policies related to innovation. In particular, two examples are shown on the impact simulation of a reduction to firms’ entry barriers and an increase in R&D tax credits. Alternative ways of modelling these two types of policy shocks are also provided to illustrate how different modelling platforms featuring different economic mechanisms can complement each other and enrich the landscape of macroeconomic policy impact assessments.

The Role of Policy Perceptions and Entrepreneurs’ Preferences in Firms’ Response to Industry 4.0: The Case of Chinese Firms

Favorable policy implementation results are due not only to policy makers’ abilities but also to the behavior of those responding to the policies. For example, a CEO’s understanding of a government policy’s content and his or her willingness to respond to it, based on the expectation of profits, plays a vital role. To understand the relationship between how policies are perceived and how enterprises behave in response to innovation policies in the era of the 4th Industrial Revolution (Industry 4.0), in this study, we use structural equation modeling to investigate the roles of various factors and examine the response mechanisms in enterprises through which entrepreneurs react to Industry 4.0 innovation policies. The hypothesized model is validated empirically using a sample collected from 337 domestic Chinese high-tech firms. The modeling results indicate that positive perceptions of policies have a positive effect on entrepreneurs’ preferences which, in turn, motivate positive behavior toward innovation. Moreover, testing the model showed partial and complete mediation effects, indicating that the perceived practicability of a policy is a factor with a strong impact on response behavior that sometimes exerts its influence by altering the mediator of entrepreneurs’ responsive preferences. The empirical results and management implications of this study can serve as a reference for the effective implementation of and response to government development plans.