When and Why Do Innovation Policies Change? A Performance Feedback Perspective

Lingjuan Zhao, Kent Ngan-Cheung Hui, Feng Xiong and Yuxin Xia

SAGE Open, 2023, vol. 13, issue 1, 21582440231162502

Abstract: National innovation is important for driving a country’s long-term economic growth and identifying social problem solutions. However, while some countries maintain favorable policies for promoting innovation, some seem to fall behind. In addition, a country’s innovation policies may change over time. In this study, we examine when and why policy-makers change innovation policies. Specifically, we draw on performance feedback theory to theorize how aspirations for national innovation may affect a country’s innovation policies. Based on the data of member states of the Organization for Economic Co-operation and Development (OECD), we find that when national innovation output is below the level of aspiration, policy-makers improve policies to attract private R&D investment (expand public R&D investment) if national private R&D investment (national public R&D investment) is also below the aspiration levels. However, the shortfalls in national private or public R&D investment alone do not motivate policy-makers to take any action. Such findings provide strong implications for policy-makers and innovators in both the private and public sectors.

Keywords: national innovation; public R&D investment; private R&D investment; performance feedback theory; government policy (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:1:p:21582440231162502

DOI: 10.1177/21582440231162502

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