Innovation policy is a relatively new item on policy-makers’ agendas. t is only from the mid-1990s onwards that the term became popular among users. In generic terms, ‘innovation policy’ is traditionally conceived as a way to support the capability of countries or regions and their innovation systems in producing novelties and putting them to use. The academic and political debate about innovation policy has focused for decades on supporting the generation of innovations. This is best illustrated by the concepts and indicators used to assess and compare the innovativeness and competitiveness of countries, which concentrate primarily on supply-side conditions, activities, capabilities, and interactions. Moreover, innovation policy rational and policy instruments have been developed mainly in the context of developed countries. Demand-side innovation policy instruments may be defined as a set of public measures to increase the demand for innovations, to improve the conditions for the uptake of innovations, and/or to improve the articulation of demand in order to spur innovations and the diffusion of innovations. Such a broad definition of demand-based innovation policies implies twin rationales, namely, to promote and stimulate innovation and to increase the diffusion of innovation. In addition, this second rationale, the diffusion of innovation, further implies that the concept of innovation extends beyond the scope of 'new to the world' and encompasses innovations that are `new to a firm’ or to a certain geographical space.

1. Demand side innovation policies
ASRao
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2. Fundamentals
• Demand side innovation policy
• Creating demand for local innovations
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3. Supply side policy instruments
• Fiscal incentives for R&D
• Direct support to firm R&D and innovation
• Policies for training and skills
• Entrepreneurship policy
• Technical services and advice
• Cluster policy
• Policies to support collaboration
• Innovation network policies
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4. Demand side innovation policies
• Private demand for innovation
• Public procurement policies
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5. Mixed policies
• Pre-commercial procurement
• Innovation inducement prizes
• Standards
• Regulation
• Technology foresight
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6. Demand side innovation policy
Demand side innovation policies are
‘a set of public measures
- to increase the demand for innovations,
- to improve the conditions for the uptake of
innovations and/or
- to improve the articulation of demand in
order to spur innovations and the diffusion of
innovations’.
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7. Policy instrument- public demand
• General procurement-State actors consider
innovation in general procurement as main
criterion (e.g. definition of needs, not
products, in tenders).
• Strategic procurement (technology-specific)
• Cooperative procurement (catalytic
procurement)
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8. Policy instruments -Direct support for
private demand
• Demand subsidies
• Tax incentives
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9. Policy instruments-Indirect support for
private and public demand
• Awareness building measures,
• Voluntary labels or information campaigns,
• Training and further Education,
• Articulation and foresight
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10. Policy instruments-Regulation of
demand
• Regulation of product information,
performance and manufacturing.
• Usage norms,
• Support of innovation friendly private
regulation activities,
• Standards to create a market
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11. Policy instruments-Systemic
Approaches
• Integrated demand Measures
• Integration of demand and supply measure
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13. Technology Value Chain
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14. RTO engagement at different TRLs
• From TRL 1 to TRL 3, the close connection of RTOs
to industry gives them first-hand information on
the needs of industry and thus the ability to
create innovative concepts of industrial
relevance.
• From TRL 4 to TRL 7, RTOs typically do not work
alone but in collaboration with industrial partners
including SMEs, academia and other RTOs.
• From TRL 8 to 9, RTOs often perform foresight
activities.
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15. Read more….
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