Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries

Abstract

The research peripheral countries (RPCs) are faced with the need to provide transformative change for long term sustainable development with scarce research and development resources which rests upon strengthening science base and the transformative innovation policy focused on societal and environmental challenges. The European Commission's proposal of a new recovery instrument – the Next Generation EU, incorporating the Recovery and Resilience Facility as a key instrument - is focused on green, sustainable, and digital economies, paving the way for a shift from the standard science, technology, and innovation (STI) policy towards transformative innovation policies which foster innovation focused on systematic change and sustainable socio-technical systems.This research seeks to understand the ways in which STI policy can contribute to the economic resilience and sustainable development of research peripheral countries and how STI policies can respond to new innovation policy paradigms, avoiding Europeanisation of STI policies and, ultimately, a peripheral policy paradox. Overcoming of the periphery paradox in STI policies requires unorthodox policy solutions to avoid inefficient replication of policy measures from advanced countries which pertain to science – industry cooperation to foster high tech industries and frontier research.This research proposes a new STI policy approach, based on interactions and interdependencies between standard STI policies for fostering scientific research and science-industry cooperation through transformative innovation policies. This policy allows for an experimental approach to policy-making, finding a way to best suit the national socio-economic context for the gradual replacement of the established socio-technical regime towards sustainable transitions. The fourth component of the new STI policy approach is the concept of the mission-oriented policy, which draws on frontier knowledge and large investments. Both new policy paradigms are discussed in order to highlight the pros and cons of their application in RPCs with regards to research capacities, socio-economic regimes/landscapes, and societal challenges.