Innovation Policy as Creating Markets, Not Only Fixing Them
Innovation Policy as Creating Markets, Not Only Fixing Them
Implications for Complexity Theory
Successful innovation policies are those that actively create and shape markets, not only fix them. In the past this has been achieved through “mission-oriented” policies aimed not at fixing market failures or minimizing government failures, but rather on maximizing the transformative impact of policy. Countries around the world are currently striving to achieve innovation-led growth that is both inclusive and sustainable. For this to happen, public policy needs to support innovation and direct future activities. Innovation policy must focus on building more “symbiotic” (less parasitic) innovation “ecosystems.” This chapter discusses new types of policy questions needed to address the collective, uncertain, and persistent nature of innovation and posits four key areas: directing public policy, evaluating public policy, organizational change to accommodate risk taking and exploration, and the socialization of risks and rewards.
Keywords: Strüngmann Forum Reports, economic markets, government failure, innovation, market failure theory, organizational change, public policy, risk taking
MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.
