This document discusses innovation policy, including its definition, objectives, instruments, trends over time, and challenges for developing countries. It defines innovation policy as aiming to promote new products, services, and processes in markets and organizations. The main focus is on economic performance and social cohesion. Innovation policy includes organizational change and marketing policies and is influenced by other policy areas. The document outlines different policy instruments and discusses innovation policy in relation to phases of economic development and industrialization. It also compares systems and neoclassical approaches to innovation dynamics and policy.
Where lies the Innovator's Advantage in strategic sourcing?Stefan
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Topics that will be emphasized in this class include
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E-business and Virtual Corporation
http://phpexecutor.com
An introductory presentation here for business students outlining the relationship between business strategy and technological environment. The role of technological change as an opportunity or threat is examined as are the drivers of innovation and the process of diffusion.
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Where lies the Innovator's Advantage in strategic sourcing?Stefan
Traditional operational and supply chain operations are often driven by speed, efficiency and cost reductions for large businesses to thrive on operations leverage. Products or services provided by suppliers and contract manufacturers are frequently normalized in prices and benchmarked against commodity prices. Sourcing/ purchasing functions often strive to engage and develop meaningful relationships with tried, tested and proven suppliers to meet the matching drivers of supply chain operations. Sourcing thrives on generating competitiveness amongst suppliers that enables the strategic negotiation of price- value reductions; the larger the pool of matching suppliers, the better the bargaining power of sourcing.
However, with increasing labor and wage costs of manufacturing in domestic markets, many suppliers of traditionally manufactured products have relocated their manufacturing operations to China to keep operating margins low. A shift in the competitive architecture is recommended for sourcing operations to access new areas of innovation. Exploratory frameworks for synthesizing innovation through suppliers include (1) Core-competence and R&D networks of the outsource supplier (2) Enabling design centricity of supplier’s products to target consumer profiles (3) Suppliers with new materials/ methods wanting to break into local markets, with a potential disruptive impact.
Ukraine: National Export Strategy Consultation. Innovation - An International...Subhrendu Chatterji
Introductory presentation to Ukranian National Export Strategy consultation participants on concepts re developing an export-oriented national innovation system and policies.
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Development of Technological capability
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Technology adoption
E-business and Virtual Corporation
http://phpexecutor.com
An introductory presentation here for business students outlining the relationship between business strategy and technological environment. The role of technological change as an opportunity or threat is examined as are the drivers of innovation and the process of diffusion.
Science, Innovation and the Economy: UK Challenges and OpportunitiesTera Allas
Presentation for Government Economic Service seminar in July 2014 on the role of science and innovation in economic growth and the UK's respective strengths and weaknesses
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"Regional Innovation Trends and Policy OptionsOECD Governance
Presentation on "Regional Innovation Trends and Policy Options" made at the Seminar on "Innovations and challenges in the management of a regional policy, held in Bratislava, Slovak Republic, 22 February 2017. Presentation by Joaquim Oliveira Martins, Regional Development Policy Division, OECD.
More information: www.oecd.org/gov/regional-policy/innovations-and-challenges.htm
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6. Innovation policy: a definition
Innovation policy refers to elements of science, technology and industrial
policy that explicitly aim at promoting the development, spread and efficient
use of new products, services and processes in markets or inside private and
public organisations.
The main focus is on the impact on economic performance and social
cohesion. Innovation policy has wider objectives than those of science
policy and technology policy. It includes policies which aim at
organisational change and the marketing of new products.
Many other policy areas affect innovation. This is true of competition policy
and macroeconomic policy, but it is also true of sectoral policies like
environment, energy, transport and communications and most importantly it is
true of human resource development policy.
7. Innovation Policy Instruments
Policy Tools Examples
Public enterprises: Innovation by publicly owned industries, setting up of
new industries, pioneering use of new technologies
Financial: Grants, loans, subsidies, financial sharing arrangements,
export credits, loan guarantees
Procurement: Government purchases, prototype purchases, R&D contracts
Commercial: Trade agreements, tariffs, currency regulations
Public services: Purchases, maintenance, construction, innovation in health
services, public buildings, transport, telecommunications
Taxation: Tax allowances, company taxation
Scientific research: Research laboratories, support for research associations,
professional associations, research grants
Education: General and technical educations, universities, apprenticeship
schemes, retraining
Information: Information networks and centres, consulting services,
databases
Regulation: Patents, environmental and health regulation, monopoly
regulation
8. Innovation Policy Trends
1960s: Basic research and human capital
1970s: Emphasis on macroeconomic adjustment and
competitiveness (neglecting the micro-level)
1980s: Technological change challenges
Technological leadership (Japan vs. US)
The <peace dividend>: declining military R&D
Diffusion-oriented policies
Environmental issues
Regulatory frameworks
1990s: The learning economy and innovation driven
growth
Exogenous shocks and complex learning processes
Emphasis of the efficiency of policy portfolios
9. Economic rationales for innovation policy
• Market failures
• Co-ordination failures [a special case of market
failures involving failures in the innovation
process]
• Path-dependence in the evolution of institutions
and industries
• Complementarities with other policies
32. Innovation Policy and Phases of Economic Development
PHASE I: INFRASTRUCTURE DEVELOPMENT FOR FDI
• Solicitation of FDI
• Creation of attractive investment and regulation regimes
• Public investment on IT, energy and transportation infrastructures
PHASE II: LOCAL CAPABILITIES AND TECHNOLOGY ACQUISITION
• Offset policies for market access
• Technology transfer and technology acquisition strategies
• Expanded incentives to local producers
• Incentives for increasing local value added
PHASE III: INDIGENOUS R&D AND COMMERCIALISATION PROCESSES
• Government funding of R&D
• Investment in technology commercialization
• Investment in higher education and human resources
• Targeted promotion of innovation at the sectoral level
33.
34. Innovation Policy and Industrialization
Objectives/Targets Obstacles Market failures & Policy Policy Approach & Policy Components
Constraints
Widespread Lack of good R&D projects Learning Approach: Government Agency becoming
Endogeneization of the an N3 network entrepreneur; generating relevant
R&D process Pervasive market failure project taxonomies; codification of policy
experience
Assemble networks
-
User-producer
-
Exchange if ideas
-
Collective, Absence of R&D (and search) Massive and flexible support
Multidisciplinary & routine at firms
Cumulative Learning
Process
Achieving ‘critical mass’ Underdeveloped R&D Mix between finance/monetary incentives and
of projects Consultancy/advisory services and institutional/market building policies
financial services markets
Developing Policy Partially inadequate institutional Predominance of Neutrality in incentives/finance
Capabilities framework
Defining the specifics of Inadequate policy approach and Proactive policies (project generation)
firm based incentives policy capabilities at Government
Investment in new policy capabilities (training, staff
work etc.)
35. Challenges for Developing Countries
• New areas of co-ordination failures
– Skills
– Infrastructure and logistics
– Capital markets
– Ability to adjust
• The lack of space for macroeconomic adjustment, i.e. the
absorption of exogenous shocks
– Interest rates fluctuations in the global economy
– De-regulation facilitating innovation driven growth in advanced
countries
36. Different Views on Innovation Dynamics and
Innovation Policy
• SYSTEMS APPROACH
• NEO-CLASSICAL – Co-ordination failures
APPROACH – Knowledge externalities
– Diffusion of technology
– Market failures
– Institutional competences
• POLICY AGENDA
• POLICY AGENDA
– Adjustment to institutional
– Innovation=R&D change
– Human Capital – Proactive diffusion policies
– Institutional learning
– Property rights
– Networking policies
37. Policies affecting the pressure for change, the ability to
change and the consequences of change
Transformation pressure
Macro-economic policies
Competition policies
Trade policies
↓
Ability to innovate [broadening vs. deepening] and adapt to change
Human resource development policies
Labour market policies
Innovation policies
↓
Redistribution of costs and benefits of change
Tax and other income transfer policies
Social policy
Regional policy
38.
39. Is that enough?
Six Myths about Technology
and their influence on Industrial Policy
(i) Technology is (just) Applied Science Set up R&D Institutes
(ii) Technological Self-reliance is Key, period Indigenization as end in
itself
(iii) More Technology is always Good Focus on R&D Spending, not
Content or Value Added
(iv) High tech is the Best technology Expensive, high-tech Champions,
State or Private
(v) Technology is well understood and easily transferred Focus on
Regulation
(vi) R&D is Key, and led by Research Focus on Research, not
Development
40. Technology Policy Implementation
BEST PRACTISE ENDOGENOUS NEEDS
• Well defined targets • Links local needs and
complementary policies
• Already available
expertise • Consensus building
• Limited requirements for • Adjustment to exogenous
new institutional shocks
arrangements • Limited local resources
• Lack of priorities for policy analysis
• Difficulty to adjust to • Lack of policy
exogenous changes implementation
institutions