Mission-oriented Innovation Policies Research Articles

Ideas behind transformative innovation policy: Economists confronting missions and sustainability transition in Finland

The ideas that experts share and draw on shape policies across various spatial and temporal contexts. In this study, we use document analysis and expert interviews to examine the views and beliefs of one important group of experts, economists, on mission-oriented innovation policy and sustainability transition in Finland. As a result, we outline the epistemic landscape that for its part conditions the progress of transformative innovation policy in Finland. While sustainability scholars have been intrigued by the promises of mission-oriented thinking, our findings suggest that they should acknowledge the epistemic limits of communities of economists regarding missions and transformative innovation policy as political vehicles to advance sustainability transition.

Regioning mission-oriented innovation policy: The articulation of directionality between federal and regional arenas in the German High-Tech Strategy

Mission-oriented innovation policies (MOIP) do not operate in a vacuum. How missions align with innovation actors, infrastructures and discourses in regional contexts is an ongoing discussion. In this paper, we draw on the case of regional dialogues that aspired to facilitate exchange and learning for the missions of Germany's High-Tech Strategy (HTS). We examine the interactional process of 'regioning' MOIP that draws in diverse publics and concerns, ultimately aiming to create institutional arenas where actors from different levels and scales come together to make sense of missions. More than being explicit objects of innovation policy, regions understood through regioning are an implicit practice of policy. By moving missions between federal and regional arenas, involved actors shape a political space for articulating the directionality of innovation policy.

Do transformer missions redirect values of mission-oriented projects? The case of the EU mission ‘Restore our Ocean and Waters’

Transformative mission-oriented innovation policy aims to redirect innovation, but evidence of this directional ability is limited. This paper examines whether transformer missions redirect values reflected by mission-oriented projects. We study the EU Mission ‘Restore our Ocean and Waters’ and use probabilistic topic modelling and thematic analyses to identify, conceptualize, and compare latent values described in 17 policy documents (i.e., strategic layer), 37 mission-oriented projects, and 809 mission-relevant projects (i.e., operational layer). We map how these values changed during the mission launch. The results of this study are ambivalent. On the one hand, the mission launch corresponds with an increase of funded projects of which mission-oriented projects commonly frame efforts towards mission objectives. On the other hand, there is a misalignment between policy and project-level values while the prevalence of project-level values remained largely unaffected by the mission. These mixed results provide a more nuanced understanding of transformer missions’ directional abilities.

The Dysfunction of Mission-Oriented Innovation Policy: Impeding the Accumulation of Scientific Knowledge in the Japanese Academic Sector

The Dysfunction of Mission-Oriented Innovation Policy: Impeding the Accumulation of Scientific Knowledge in the Japanese Academic Sector

Enterprises’ response strategies towards a mission-oriented innovation initiative – a reflection on China’s indigenous innovation

ABSTRACT Mission-oriented innovation initiatives hold significant value for nations worldwide. Responses of innovative actors account for the final outcomes and achievements of these initiatives, while which are still unexplored. Based on the institutional logics perspective, we develop a framework to elucidate the response strategies of different kinds of enterprises towards the indigenous innovation proposed in the National Middle and Long-Term Program for Science and Technology Development 2006–2020 (MLP), the most influential mission-oriented innovation policy in China during the past 20 years. By combining primary interview materials with secondary data, we initially analyse the logic conflicts that enterprises face, the changes in logic conflict scenarios under this initiative (including the types and degrees of conflicts), and the potential benefits they can get from this initiative. We then delve deeper into investigating their response strategies. Our research provides a new lens for researchers and policymakers.

Regulatory experiments and real-world labs: A fruitful combination for sustainability

What are regulatory experiments and how can they contribute to sustainability transformations? We seek to answer these questions by considering regulatory experiments in the energy sector and exploring their potential impact pathways. Different kinds of regulatory experiments can be combined with real-world labs to expand their scope and their impacts to the regulatory realm.Regulatory experiments (RegExs) can be considered an element of mission-oriented innovation policies. As such, we discuss how they relate to real-world labs (RwLs) and how they can contribute to sustainability transformations. We distinguish between two types of experiments: 1. regulatory sandboxes that help innovators to bring new products, services, and other innovations to market, and 2. regulatory-innovation experiments that are specifically designed to explore new solutions for evolving regulatory frameworks. The two types can be linked to RwLs such that an RwL can be embedded in a regulatory sandbox, enabling the RwL to try out solutions that would not be feasible without the sandbox, given the regulatory framework in place. Alternatively, the various experiments in the RwL are complemented by one or several regulatory-innovation experiments. RegExs, as a form of experimental policy engagement, are an important addition to RwL concepts in a sustainability transformation context. They contribute to both innovative sustainability solutions as well as regulatory learning and testing of regulatory innovations. By applying the programme theory approach and developing a Theory of Change for RegEx, we discuss their potential impact on sustainability transformations in terms of the directionality and the acceleration of change, based on examples from the energy sector.

The transformation of science, technology and innovation (STI) policy in Japan

ABSTRACT This note sketches the evolution and growing centrality of Japan’s science, technology and innovation (STI) policy over the past quarter century, from the Basic Law on Science and Technology in 1995 to the new Science, Technology and Innovation Basic Law in 2020. It highlights: the shift from a primary emphasis on economic value and competitiveness to encompass social needs, resilience and sustainability; the growing importance of mission-oriented innovation policy (MOIP); the consequent need for new coordination mechanisms across government and at different levels, from local to international; the need for continuous evaluation and adjustment mechanisms as opposed to post-project/programme evaluation; and the need for human resources for these. The Strategic Innovation Programme (SIP) Automated Driving Project is described as a pioneering model of cross-ministerial MOIP, and key challenges for the forthcoming 7th STI Basic Plan (2026–30) are identified.

Согласование региональных инновационных процессов с приоритетом обеспечения технико-технологической конкурентоспособности РФ

Although Russia has approximately 200 tools to support science and innovation, the observed innovative activity of Russian organisations of 12 % is 4-6 times lower than that of most technologically developed countries. Under international sanctions, it is necessary to enhance the innovative component of the country’s technological competitiveness. The study hypothesises that improvement of innovation processes management in Russian regions requires a transition to a holistic innovation policy aimed at harmonising regional science, technology and production to ensure technological sovereignty. The article refines the methodology and mechanisms of the Russian innovation policy. The author’s approach to the implementation of the mission-oriented innovation policy considering the specificity of Russian regions is described. The use of a layered innovation strategy is substantiated. Innovative activity should first be stimulated in regions with the highest development of science and technology industries; then, other regions should be gradually involved in innovation processes. The following indicators are considered while selecting regions: the number of R&D employees, shipping volume of high – and medium-tech enterprises, number of university students, fiscal capacity. Data of the Federal State Statistics Service are analysed. The rank method is used for a preliminary selection of 10 regions most suitable for implementing the developed approach (Moscow, St. Petersburg, the Republic of Tatarstan, Nizhny Novgorod, Sverdlovsk oblasts, etc.). The study presents innovation missions for these regions aimed to overcome the technological gap and reduce import dependence (innovative import substitution, circular economy, etc.). The findings can be used to improve innovation policy at the federal and regional levels. Future studies should focus on establishing theoretical and methodological foundations of a unified scientific and technological space in Russia.

Resource scarcity, circular economy and the energy rebound: A macro-evolutionary input-output model

We propose an Agent-Based Stock-Flow Consistent model combined with a simplified Input-Output (IO) structure of production. In the model, heterogeneous firms interact in the energy, material, capital and consumption markets. Materials for production of consumer goods can be manufactured using non-renewable or recycled material inputs. We examine the conditions under which the circular economy emerges through market mechanisms, as well as it can be a source of the rebound effect. An important novelty of our approach is that recycling and mining sectors employ different types of capital for production. Capital goods (machinery) are produced by capital firms, which constantly engage in innovations to improve their technological features. This way we endogenize changes in technological coefficients of the Input-Output tables. We show that sectoral interdependencies along the value chain can render the energy rebound effect due to the circular economy (CE) even if energy intensity of the recycling process is lower compared to mining. This effect depends on the impact of investment in the recycling sector on the aggregate demand and energy use along the entire value chain. We assess the role of macroeconomic policies, namely mission-oriented innovation policies (MOIPs), active fiscal policies (AFPs), and environmental taxes in fostering the CE transition, while mitigating the rebound effect. We find that the combination of MOIPs and active fiscal policy is the most effective in promoting the circular economy, preserving employment and ensuring a sustainable growth path.

A tale of two cities: mission-oriented innovation policy in China’s green industries

ABSTRACT Mission-oriented innovation policy (MOIP) has become an important means of fostering green transition in many countries. However, few studies have focused on how the various challenges unique to developing and emerging economies affect the design and implementation of MOIPs. Through a longitudinal comparative analysis of China’s two green industries, our study contributes to understanding MOIP instrument mixes within the context of developing countries and industrial differences. First, we identify a four-dimensional framework of MOIP instruments aligned with the existing literature, while also highlighting China’s policymaking features under authoritarian yet adaptive governance. An in-depth analysis of the implementation of MOIP instrument mixes throughout niche development uncovered dynamic mechanisms, industry differences, and complex local government responses. Our work suggests that, with an adaptive instrument mixes that focuses on both types of missions and the local institutional context, MOIP can potentially promote green transition in developing countries.

Legal–institutional design and dynamic capabilities for mission-oriented innovation agencies: a new framework

Abstract Recent scholarship emphasizes the need for mission-oriented innovation policies (MOIPs) to tackle grand challenges and the importance of dynamic capabilities in innovation agencies for their implementation. However, the development of dynamic capabilities in innovation agencies, especially in relation to the legal and institutional design of such agencies, remains understudied. We propose a framework integrating research on innovation policy, dynamic capabilities, and legal institutionalism, adapting the three high-order dynamic capabilities—sense, seize, and transform—into nine more concrete low-order capabilities for implementation of MOIPs. We also look at rules and institutional design related to five groups of routines affecting the development of dynamic capabilities: (1) governance, (2) organizational design, (3) budget and finance, (4) public procurement and partnerships, and (5) human resources. We conclude by outlining the analytical and policy implications for (re)designing innovation agencies to implement MOIPs.

Mission-Oriented Innovation Policy: E-Government Development Trajectory in Indonesia’s Bureaucratic Reform

The complex and evaluative nature of bureaucracy in Indonesia has posed significant challenges in its implementation. In response, the Indonesian government has prioritized the digitalization of government administration through the adoption of the e-government system. This paper investigates the trajectory of the e-government system in Indonesia, with a specific focus on Sistem Pemerintah Berbasis Elektronik (SPBE) as a pivotal element of the mission-oriented innovation policy. Through a thorough literature analysis, this study emphasizes the importance of embracing a mission-oriented strategy to effectively address governance issues and foster innovation. Additionally, it explores the roles of key actors involved in the policy process and examines the diverse factors that influence policy outcomes. The findings highlight the instrumental role of the maturity index in policy implementation and its impact on achieving policy objectives. Furthermore, this paper discusses the various challenges and opportunities arising in the context of e-government implementation in Indonesia.Keywords: Mission-Oriented, Innovation Policy, E-Government, Bureaucratic Reform

On the resilience of innovation systems

ABSTRACT Mission-oriented innovation policies address urgent societal challenges, often through rapid technological upscaling. However, upscaling may endanger the resilience of an innovation system by limiting variety. A resilient innovation system is ambitious in scaling up while intelligently fostering variety. To assess resilience, a country’s technology portfolio needs to be contextualised against global trends. We introduce contextualised variety to uncover threats, windows of opportunity and poorly allocated resources and evaluate the maturing Dutch offshore renewable energy innovation system based on 236 R&D projects 12,000 industry contracts and 34 interviews. Our results indicate that the Netherlands invests in variety for its installation sector, bolstering resilience, while it neglects its foundations sector, indicating a threat. The Netherlands further supports a non-existent traditional wind turbine sector, suggesting poor resource allocation. However, it backs disruptive wind turbines, a window of opportunity contingent on upon concerted innovation policy. This framework demonstrates how to evaluate the resilience of any innovation system.

Social innovation, transformation, and public policy: towards a conceptualization and critical appraisal

Abstract This article conceptualizes the role of social innovation (SI) in transformational innovation policy, identifies policy options, and points out potential risks of mobilizing SI for transformations. We illustrate our conceptual claims based on selected policy examples and propose a set of distinctions about the basic role of policy for SI in the context of transformation. We distinguish the importance of SI for the two policy approaches: transformative innovation policy and mission-oriented innovation policy. It follows that politics must differentiate between the various types of SI and their different significance for missions and transformations. To decide whether and how policy intervenes, ex ante and ex post analyses of the transformational effects of SI and the policies that act on them must be developed and applied. It is crucial to accompany and promote the diversity of SIs politically in such a way that they can constructively unfold their transformation potential.

Mission Impossible: The Influence of Incumbent Industries on Mission-Oriented Innovation Policy Targeting Carbon Lock-In

Mission Impossible: The Influence of Incumbent Industries on Mission-Oriented Innovation Policy Targeting Carbon Lock-In

Economy-Finance-Environment-Society Interconnections In a Stock-Flow Consistent Dynamic Model

ABSTRACT This work takes inspiration from four theoretical strands: recent developments in ecological macroeconomics; the Schumpeterian framework of evolutionary economics that emphasises the entrepreneurial role of the State; the stock-flow consistent approach to macroeconomic modelling; and the supermultiplier model. Building upon these approaches, we develop a formal model that reproduces key interactions between the economy, the financial sector, the ecosystem and the society. We test and assess the effects of several fiscal policies. We find that, in principle, mission-oriented innovation policies are the most effective option in supporting innovation and growth, while reducing income inequality. However, lacking a ‘green’ and progressive taxation system, they are unlikely to reverse the current trend in atmospheric temperature.

Mission-Oriented Innovation Policy for Sustainable Development: A Systematic Literature Review

This paper aims to explore effective ways to incorporate a mission-orientated framework to innovation policies that are designed to achieve the United Nations’ Sustainable Development Goals (SDGs). This paper aims to identify the strategies of MOIP to inform innovation and sustainability in the Middle East and North Africa (MENA) region, particularly focusing on the Gulf Corporation Council (GCC) context. It does so through a systematic literature review of current studies related to MOIP, according to the PRISMA protocol, regarding countries in the GCC region that are currently undergoing ambitious national strategic development plans with sustainability and inclusive growth at their core. This particularly targets SDG 9, which is about fostering innovation that is inclusive and sustainable. Implications for this study may inform innovation policy in the GCC and even inspire the wider Middle East and North Africa (MENA) region in terms of innovation metrics, energy transitions, the innovation ecosystem, public participation, and policy implementation and evaluation. Based on the systematic review and current innovation ecosystems and practices in the GCC, recommendations and strategic options are outlined.

Towards a Mission-oriented Innovation Systems (MIS) approach, application for Dutch sustainable maritime shipping

This paper builds on the literature on mission-oriented innovation policy, governance, transition studies and innovation systems, and develops a structural-functional approach to formatively evaluate mission governance from a Mission-oriented Innovation Systems (MIS) perspective. Central to this MIS approach is the mission arena, a governance structure where actors formulate and govern the mission, by mobilizing and directing other, preexisting system components. Their goal is to meet the mission by developing and diffusing innovative mission solutions and destabilizing harmful practices. The MIS approach involves a problem-solutions diagnosis and an analysis of structural, functional, and systemic barriers. To provide formative mission governance recommendations, the systemic barriers are then contrasted with the mission arena’s governance tasks. To illustrate the value of the MIS approach, we use a case study of the Dutch mission for sustainable maritime shipping. This case study illustrates a mission arena striving to increase coherence amongst different innovation system structures in semblance of a MIS. The mission arena configuration of actors shaped the mission formulation and negotiated governance actions. Dominant industry networks negotiated green growth as problem direction and non-committal governance actions, which are likely ineffective for inherently transformative sustainability missions. The paper concludes by identifying directions for further developing the MIS approach and the mission arena concept.

Um processo de design para definir desafios públicos envolvendo os ODS

Abstract How might we define local innovation challenges that are user-centered but also address strategic goals, such as the Sustainable Development Goals (SDGs)? We propose a design process that introduces a relevant contribution to the practices of the Mission-oriented Innovation Policies (MIPs) field as it goes from Grand Societal Challenges (GSCs) to local innovation challenges, which are more relevant to local needs and capabilities of solution. The main goal of the design process is to go from a GSC, such as “access to health” and one of its missions, like “reducing chronic Non-Communicable Diseases (NCD),” to a more able-to-solve innovation challenge, passing by its mission, and different problems and aspects. Snowball sampling methods allow us to find and mobilize electable subjects and design thinking techniques to process problem mapping, election, and clustering, as well as create challenge statements. It was possible to translate GSC to the local reality while reducing contestation and complexity and producing a problem-grouped map with prioritization and three problem statements (challenges) with open phrasing and solution criteria to foster the users’ desired outcomes.

An elephant in the glasshouse? Trade-offs between acceleration and transformation in COVID-19 vaccine innovation policies

Against the backdrop of a failing vaccine innovation system, innovation policy aimed at creating a COVID-19 vaccine was surprisingly fast and effective. This paper analyzes the influence of the COVID-19 landscape shock and corresponding innovation policy responses on the existing vaccine innovation system. We use document analysis and expert interviews, performed during vaccine development. We find that the sharing of responsibility between public and private actors on various geographical levels, and the focus on accelerating changes in the innovation system were instrumental in achieving fast results. Simultaneously, the acceleration exacerbated existing societal innovation barriers, such as vaccine hesitancy, health inequity, and contested privatization of earnings. Going forward, these innovation barriers may limit the legitimacy of the vaccine innovation system and reduce pandemic preparedness. Next to a focus on acceleration, transformative innovation policies for achieving sustainable pandemic preparedness are still urgently needed. Implications for mission-oriented innovation policy are discussed.