Abstract
What factors and trends have led to today’s patterns of government support for innovation in OECD economies? How has this helped shape current innovation systems? How is it relevant towards addressing the causes and effects of the current crisis? This chapter reviews how governments allocate public resources towards research and innovation, drawing in part on recent evidence from OECD projects. These interact with other major public policy discussions on the nature of government intervention and the breadth of innovation activities, as well as international debate around which subsidies are permissible today across highly interconnected economies. The chapter explores how the COVID-19 crisis may result in shifts in the volume, nature and direction of public support for innovation. It concludes with possible scenarios and their impact on the way governments will sustain future innovation activity in their societies.
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