Abstract
This article discusses the role of state-owned enterprises in innovation policy management. This has long been a neglected topic in both management and innovation literature. The paper outlines the most important factors that influence R&D objectives and investments in state-owned enterprises and their interaction with other innovation policy actors and measures. The main contribution of the article is a novel theoretical approach for analyzing the main trends in innovation policy practices in state-owned enterprises. Their possible role in technology advancement, especially in areas requiring large-scale investments, as in energy technologies is discussed. The probable outcomes of innovative investment depending on the constraints present in the system are analyzed. The framework is actualized with a case study of Eesti Energia, a state-owned energy company in Estonia.
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