Capturing the system-level effects of innovation policy: an assessment of publicly funded innovative entrepreneurship in Sweden

Mart Laatsit (), Åsa Lindholm-Dahlstrand () and Magnus Nilsson
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Mart Laatsit: CIRCLE, Lund University, Postal: CIRCLE - Centre for Innovation Research, Lund University, PO Box 117, SE-22100 Lund, Sweden
Åsa Lindholm-Dahlstrand: CIRCLE, Lund University, Postal: CIRCLE - Centre for Innovation Research, Lund University, PO Box 117, SE-22100 Lund, Sweden
Authors registered in the RePEc Author Service: Åsa Lindholm Dahlstrand

No 2023/12, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: A new generation of innovation policies has placed renewed attention on understanding the innovation processes taking place on and affecting the system level. On one hand, there is a growing demand for policy instruments addressing the need for system change. On the other hand, there is still a lack of understanding of how innovation policy instruments contribute to a system-level impact. We address this gap by taking a programme perspective and proposing an analytical framework for assessing three types of effects: first-order, second-order, and system-level. Our approach is inspired by the functions of technological innovation system literature (TIS). We apply the analytical framework to the analysis of an innovative entrepreneurship instrument, the Swedish Innovation Agency VINNOVA’s Innovative SME programme. We find that the public support programmes contributed significantly to SMEs’ ability to influence system functions. Based on the findings, we argue that the analysis of innovation policy programmes should move beyond a narrow assessment of direct effects and consider more the second-order and system-level effects.

Keywords: innovation policy; Sweden; public funding (search for similar items in EconPapers)
JEL-codes: O33 O38 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2023-11-28
New Economics Papers: this item is included in nep-eec, nep-ent, nep-eur, nep-ino and nep-sbm
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