Innovation Policy Overview
OVERVIEW OF INNOVATION SYSTEMS
Fostering Long-term Economic Growth
INTRODUCTION
Innovation policy studies try to understand how important innovation is in our increasingly competitive world and markets. They question government intervention to find the most effective way of helping innovation thrust forward, not only through private investment and subsidizing but through helping and backing up industries and firms which look as future leads for long term economic growth. When talking about innovation we tend to think about invention and creativity, but creativity means making a connection between or combining two elements that have not been previously combined (Feinstein 2006:31). Innovation goes much further in that changes can be made to existing products and uses feedback as a major input. There are also some that believe novelty with no identifiable value can’t have any application. The study of innovation policy shows this is only the beginning of a long and arduous process of implementation of technology, market adaptation, ‘competition vs. collaboration’, and the appropriability of the returns generated from it. To some authors this is even an on-going cycle with constant feedback which enables the further innovative process. Innovation policy tries to understand the context in which all of this occurs and how new technologies and these innovations in themselves are completely changing the market environments, structures and development costs. Innovation systems, as well as the decisions brought forward by policy makers are subject to a great deal of subjectivity as well as external or uncertainty factors which could affect the final outcome. Thus, it is extremely difficult to make any empirical assessments or develop models which use present data. All the assumptions and conclusions offered in this paper are therefore of a theoretical kind, trying to provide insight through the analysis and compilation of knowledge provided by academic authors.
Fostering Long-term Economic Growth
INTRODUCTION
Innovation policy studies try to understand how important innovation is in our increasingly competitive world and markets. They question government intervention to find the most effective way of helping innovation thrust forward, not only through private investment and subsidizing but through helping and backing up industries and firms which look as future leads for long term economic growth. When talking about innovation we tend to think about invention and creativity, but creativity means making a connection between or combining two elements that have not been previously combined (Feinstein 2006:31). Innovation goes much further in that changes can be made to existing products and uses feedback as a major input. There are also some that believe novelty with no identifiable value can’t have any application. The study of innovation policy shows this is only the beginning of a long and arduous process of implementation of technology, market adaptation, ‘competition vs. collaboration’, and the appropriability of the returns generated from it. To some authors this is even an on-going cycle with constant feedback which enables the further innovative process. Innovation policy tries to understand the context in which all of this occurs and how new technologies and these innovations in themselves are completely changing the market environments, structures and development costs. Innovation systems, as well as the decisions brought forward by policy makers are subject to a great deal of subjectivity as well as external or uncertainty factors which could affect the final outcome. Thus, it is extremely difficult to make any empirical assessments or develop models which use present data. All the assumptions and conclusions offered in this paper are therefore of a theoretical kind, trying to provide insight through the analysis and compilation of knowledge provided by academic authors.