National Innovation Policy Research Articles

US innovation policy: Creating (and expanding) a national agenda for global competitiveness

SummaryWhile many critics of the state of US global competitiveness believed they were faint voices in the economic policy wilderness, their concerns were being heeded by a leading national economic policy group, the Council on Competitiveness. The National Innovation Initiative Report (Innovative America), released by the Council on Competitiveness in December 2004, presents a national innovation policy agenda (under three broad categories of Talent, Investment, and Infrastructure) for the public and private sector to debate. The Bush administration, under its innovation policy agenda (A New Generation of American Innovation and American Competitiveness Initiative) released in April 2004 and January 2006, has emphasized three major technology policy initiatives (hydrogen fuel technology, health information technology, and broadband technology development) and increased federal R&D funding and tax incentives (totaling $5.9 billion for FY07) respectively. The weakness of both policy agenda approaches is in the narrow interpretation of ‘innovation’; that is, focusing on the ‘technology’ side of innovation at the expense of market knowledge or organizational innovation In general, both public and private sector efforts need to be enlisted to encourage inter-organizational scientific and engineering communications across organizations and national borders (socalled ‘public spaces’); create an internal environment within US corporations that is conducive to, not only technological, but also organizational innovation; and develop metrics to measure an expanded national inventory of innovation activities – beyond that of traditional science and technology indicators.

Managing Relations with Industry

For a long time, university-business relations were a matter of individual, informal and intermittent contacts. Once the innovation process picked up speed, businesses began asking more from universities (longer-term co-operative research, for example), and governments placed university-business interaction at the centre of their innovation strategies, with the universities having to organise interface structures as well as developing internal standards for the agendas of teachers-researchers, industrial property, etc. In Brazil, universities started to do this during the 1990s. The Brazilian experience shows that the success of interface structures depends not only on the national innovation policy but above all on the conditions specific to each establishment. This article discusses the results of three surveys conducted by the Universidade Federal do Rio Grande do Sul concerning the technology transfer and intellectual property offices of Brazilian universities, and is set out as follows: 1) the background to university-business relations in Brazil; 2) the characteristics, strong points and weaknesses of university offices, based on their development over the last decade; and 3) benchmarks for the development of internal strategies.

International knowledge and national innovation policy: Impact of foreign knowledge on domestic productivity

SummaryThis paper examines the policy implications from the growing importance of knowledge generated elsewhere for domestic productivity growth. Several studies have addressed the significance of international knowledge flows and spillovers, and the various channels through which these are transmitted. Relatively few studies have focussed on the translation of these results into implications for current (national) innovation policy. From a policy point of view, the question arises whether it is possible to increase a country’s benefits from foreign knowledge. What are the obstacles to international knowledge flows and how can they be removed? Some policy options are formulated. The formulation of policy implications is complicated by the fact that, within the literature to date, only few results have been solidly established – and many important topics have not yet been considered. Therefore, some suggestions for the formulation of a coherent policy research agenda are made.

Trends and gaps in biotechnology policies in European Member States since 1994

Most European national policy systems have gradually intensified their efforts in supporting the development of the biotechnology knowledge base and its industrial application. Aim of the paper is to increase understanding of the national approaches to promote biotechnology in Europe, to explore heterogeneity and general trends in the design and implementation of policy instruments, and finally to identify the gaps of national innovation policies since 1994 in Europe. The paper analysis policy intervention in the 4 main networks of the biotechnology innovation system: the knowledge base, the industry, the financial system and the market.

National innovation policies in an IT society: the myth of technology policies focusing on supply sides

With a dramatic advancement of information technology (IT), active interactions with users have become a key factor for success in conducting business. In addition, IT has a conspicuous tendency that it is evolving with demand through active interactions between them. Innovation policies should take these changes into consideration. One hypothesis is that the policies of promoting active interactions between technology suppliers and users are effective, while the traditional policies of focusing on just supply sides of technology are not so effective. This paper examines this view by investigating the past policies initiated by the Japanese Government.

Taking the (right?) fork in the road: Canada’s two-track approach to domestic and international science and technology

Canada's approach to developing a strategic capability of integrating science and technology into its international trade and foreign relations agenda has remained largely stagnant, while its domestic strategy for S&T has flowered. Canada is not perceived by the global industry and investment community to have a strong industrial R&D capacity: this may be hindering ready access to emerging international technology. Nevertheless, the quality of Canada's academic and industrial research is widely regarded internationally as of the highest calibre. As long as international S&T issues remain somewhat peripheral and occasionally referenced in the national innovation or foreign policy reviews, Canada's links to international S&T activities will probably remain disassociated from the explicit drive to a coordinated strategy for national S&T. For this to change, structural change will have to take place as well as a significant alteration in the attitude of Canada's major sectors of innovation and research performance. Copyright , Beech Tree Publishing.

Innovation Policy in Six Candidate Countries: The Challenges National Innovation Policy Profile: Hungary

The report is a country study on Hungary for a project on Innovation Policy in Six Applicant Countries. It covers the following key issues: The innovation policy framework: major actors in the design and implementation of innovation measures, assessment of policy developments, data sources on innovation and analysis of key indicators, legal and administrative rules for creating companies, company tax incentives, etc. Measures to foster innovation in business, teaching programmes and training aimed at fostering an innovation and enterprise culture, awareness and use of innovation management tools. Business innovation and support measures: support for start-up and development of technology-based firms, research community-industry co-operation, business support networks for innovation (sub-contracting; foreign investors). It concludes with policy recommendations.

Development of national innovation policy in small developing countries: the case of Cyprus

This paper analyses the concept of national innovation policy (NIP) and puts forward arguments supporting the need for a NIP for small developing economies like Cyprus. A brief outline is given of the science/technology infrastructure and current innovation related policies in Cyprus while the attitudes of owners/managers of private manufacturing firms towards these policies, based on a research survey, are examined. The survey reveals an ambivalent attitude towards NIP, which is probably due to unrealistic expectations, as well as, inefficiency in design and implementation of innovation policy measures. Case research confirms these conclusions and highlights the importance of NIP for private firms despite the rhetoric of their managers against it. The formulation of a specific NIP for Cyprus is then considered, from which lessons for other developing countries are drawn.

Actual problems of Russia's science and innovation policy

The most topical problems of Russia's science and innovation policy are analysed. The causes of the current crisis in R&D are investigated along with the most important political decisions regarding new S&T policy in Russia. It is important that additional sources of funds and reserves are used efficiently, the network of R&D institutions is restructured, and S&T priorities are decided. Special attention is given to the intensification of national innovation policy, improvement of the system of tax exemptions for R&D, and social protection of scientists in the period of restructuring. An original evaluation of the possible consequences of the reform of Russian science is proposed. Copyright , Beech Tree Publishing.

Ukraine: Developing innovation policies for a recently independent economy

The first years of Ukrainian independence were accompanied by active development of national policies. The major decisions concerned with socio-institutional set-up and legal reforms during basic administrative changes established new government agencies, funds, and other bodies responsible for innovation policy. This period is characterised by declining basic indicators for economic activity, although those for science and technology activity, as inputs to these measurements, have undergone less change. The main institutional reforms within the first national innovation policies can be considered as an endeavour to build independent R&D institutionalisation with the elements of market principles. These and related policies are evaluated in the analytical framework of the concepts of technical change. Copyright , Beech Tree Publishing.

From industry targeting to technology targeting: A policy paradigm shift in the 1980s

The 1980s represent an era in which the governments of many industrialized countries changed their policies regarding international competition. This paper investigates the initiation of important technological programs and the adjustments made to the missions of government organizations and agencies in Japan, the United States, and nine countries in Western Europe. It is suggested that, over the past decade or so, there has been a pervasive shift towards the technological dimension in government policy in the industrialized world. On the one hand, overt industry targeting seems to have waned or not to have increased significantly; on the other hand, technology targeting has become more explicit and market-oriented. This trend implies a convergence of, and a head-on competition between, national innovation policies.

Japanese technological innovation strategy: recent trends

Firstly, a review of models of the Japanese innovation process is presented and the dominant characteristics of each model are identijed. The latest innovation trends in Japan are analysed using recent examples, and a n integrative model is presented based on these. The major elements of the Japanese innovative process are as follows: (a) organizational intelligence; (b) fusion of technologies; (c) horizontal information flow structures; (d) core competence building i n generic technologies; (e) rapid horizontal duffusion of technologies; V) concurrent engineering; (g) rapid commercialization of new technologies into new businesses. National innovation policies have to be structured to enable quick response to the emerging global changes.

Prospects for a national innovation policy in the USA

This article examines efforts in the USA to initiate and implement a national innovation policy, and from this future prospects are inferred. It is argued that unless a crisis atmosphere prevails for a considerable period the USA will develop and implement neither an innovation policy nor a ‘comprehensive-type’ industrial policy. The reasons for this are deeply rooted in US political values and institutions.

Policy implications of the innovation process in the U.S. food sector

A summary of the findings of a study of innovation among firms in the food sector (suppliers of equipment and packaging, and food processors) is presented. The methodology to incorporate national innovation policy concerns is discussed, including the analysis and impact of firm preferences for federal innovation incentives. Generally, it was found that government influence tends to discourage innovation in this sector, although there are notable exceptions. National science and technology policy recommendations included the following: (1) the most desirable actions are those that make more investment capital at a lower interest rate available to the sector. This would aid food processors in adopting equipment and packaging that would make them more productive and stimulate suppliers to innovate in these product categories. (By one source, suppliers account for more than half the significant innovations in this sector); (2) large food processor and large supplier firm size is a justifiable condition for innovation in the food sector; (3) national innovation policy would be more effective if informed by an increased awareness and understanding of the technology strategy formulation process at the firm level; (4) although tax incentives for innovation are preferred by the sector, the results of this study do not unambiguously inform innovation tax policy; (5) desirable regulatory reforms, especially in the areas that are extreme cost burdens to smaller firms, include the speed-up of the decision making process, and clarification and increased consistency of regulations (e.g., labeling); (6) dissemination of information on the innovation process is a desirable goal to be maintained by government; and (7) any government actions that foster supplier-food processor collaboration for innovating purposes would be desirable.

A long-wave hypothesis of innovation

The flow of basic innovations into developed economies appears to occur in waves. Brief periods of high receptivity to basic innovations occur every 40–60 years; in between, economic conditions favor less radical improvement innovations. This paper presents a theory and evidence showing how long waves can develop from overexpansion and collapse of capital-producing sectors of an economy. Each wave of capital expansion utilizes a new ensemble of technologies. The economy appears currently to be near the end of a long-wave expansion, which may explain much of the current malaise in innovation, investment, and productivity. Both national innovation policies and research management can benefit by understanding long-wave changes in the economy.

Innovation, efficiency cycle, and strategy implications

Innovation research is now in its third stage, in which most attention is given to the efficiency cycle of industries. The five stages of this efficiency cycle (takeoff, rapid growth, maturation, saturation, and crisis) are very important for the firm's strategy and national innovation policy. Innovation policy should take into account societal goals and objectives. ASocial Oppurtunity Analysis (SOA) is especially important for determining future innovation fields, identifying new alternatives for structural change, and solving problems facing national economies and the entire world economy. This paper tries to identify the universal and global challenges facing national innovation policy and firm strategy in many countries. Their conclusion is that we need a relationship between innovation policy and firm strategy that is able to give innovations a more concrete orientation toward human needs; to create social control procedures for unintentional, indirect, or delayed disadvantages of technology; to secure the interlinkage between technological and social innovation; and to contribute significantly to solving global problems. In this context we discuss the tasks critical to improving the relationship between national innovation policy and firm strategy: 1. 1. Consideration of the different roles of basic, improvement, and pseudo-innovations. 2. 2. Information about future fields of innovation. 3. 3. Exploration of the different side effects of innovation. 4. 4. A strengthening of the scientific and educational infrastracture for innovation. 5. 5. Improvement in the abilities of firms and society to deal with new circumtances and situations by developing new procedures of social and organizational innovative learning. 6. 6. The realization that government actions concerniong innovation can cause very different results in the different stages of the innovation process. 7. 7. The global dimension of innovation.