The Choice of Innovation Policy Instruments

Abstract

The purpose of this chapter is to discuss the different types of instruments of innovation policy, to examine how governments and public agencies in different countries and different times have used these instruments differently, to explore the political nature of instrument choice and design (and associated issues), and to elaborate a set of criteria for the selection and design of the instruments in relation to the formulation of holistic innovation policy. The chapter argues that innovation policy instruments must be designed and combined into mixes that address the problems of the innovation system. These mixes are often called ‘policy mixes’, though we prefer the term ‘instrument mix’. The wide combination of instruments into such mixes is what makes innovation policy ‘holistic’.

How is research policy across the OECD organised?

“…The ontology was developed based on an in-depth review of the relevant literature on the governance of public research, resulting in the selection of 3 policy dimensions: i) institutions in charge of priority setting, budget allocation and evaluation (e.g. Breznitz, 2007;Fuchs, 2010;Borrás and Edquist 2013), ii) policy co-ordination mechanisms (e.g. Borras and Edler, 2014) and iii) external stakeholder involvement and university autonomy (e.g.…”

“…This includes in particular studies that have investigated the institutional arrangements that shape the design and implementation of the innovation policy mix from a cross-country perspective (e.g. Borrás and Edquist 2013;Borras and Edler, 2014). Other studies have focused on in-depth analyses of specific governance dimensions, such as the organisation of funding agencies and the type of funding arrangements in the United States (e.g.…”

State‐Led Innovation at the City Level: Policy Measures to Promote New Energy Vehicles in Shenzhen, China

“…Although public infrastructure investment may be viewed as a form of subsidy for a certain technological field, its direct effect on markets for innovative products is limited. This is different for the public procurement of innovative goods, which affects sales numbers, and possibly prices, and can be a powerful support tool for selected products and producers (Johansson and others ; Borrás and Edquist ).…”

“…However, there is a broad discussion about the policy approaches that governments may choose when it comes to fostering innovation (Johansson and others ; Borrás and Edquist ). In the case of NEV, it seems most promising to speed up the application and use of existing technologies, thus increasing the size of the market, involving more users and producers, and increasing the opportunity for economies of scale to arise and for learning by using and learning by interacting (Anderson and Tushman ; Murmann and Frenken ; Altenburg and others ).…”

Capabilities in knowledge-based regional development – towards a dynamic framework

“…Yet, a framework and methods of how to analyse these multi-layered capabilities, and what and whose capabilities are needed in the regional knowledgebased development has remained somewhat abstract and vague both in the field of research and practical policy-making. There is still not much analysis or discussion of who and how different actors contribute to the functioning and performance of these systemic development processes (Borrás & Edquist, 2013b;Carlsson, 2007;Carlsson, Jacobsson, Holmén, & Rickne, 2002). Thus, it is important to investigate how regional actors are capable of influencing regional development and shape, interpret and exercise innovation policy (see also Sotarauta & Kosonen, 2013).…”