The institutional structuring of innovation policy coordination: theory and evidence from East Asia

Abstract

This article suggests that variations in the dominant pattern of innovation policy coordination can be analysed and understood effectively by dividing innovation and other complementary socio-economic policies into low-complexity and high-complexity tasks. The effective implementation of these two sets of policy tasks that differ in the extent, nature and intractability of collective action problems confronting the coordination process hinges on the strength of two sociopolitical institutions: bureaucratic organizational structures and interactive governing arrangements. While bureaucratic organizational structures are better suited to delivering low-complexity tasks, interactive governing arrangements are more effective in resolving high-complexity policy problems. They interact differently across political economies to structure the management of coordination challenges and thus give rise to divergent patterns of innovation policy-making. The comparative analysis of innovation policy coordination between Hong Kong and Singapore over the past two decades lends strong support to the central theoretical propositions of the article.