A new role of the state for transformations through innovation?

Stefan Kuhlmann, Uwe Cantner and Dirk Fornahl

Chapter 9 in A Research Agenda for Innovation and Development, 2026, pp 123-137 from Edward Elgar Publishing

Abstract: This chapter examines the evolving role of the State in fostering transformative innovation amid twenty-first-century challenges, including climate change and geopolitical shifts. Drawing on recent scholarship, the authors identify ten building blocks for transformative State innovation policy, emphasizing mission-oriented approaches, whole-of-government coordination, experimental policy learning, and socially acceptable change management. However, since 2020, rising libertarian and nationalist movements—particularly in the United States—challenge these frameworks by reducing State agency, prioritizing corporate interests, and rejecting climate action and inclusive development goals. This ideological shift threatens coordinated international efforts towards sustainability and equity, fragmenting the global innovation landscape into competing blocs. The authors argue for a ‘strategically reflexive State’ that combines long-term missions with adaptive governance, balancing global cooperation with domestic resilience while maintaining commitment to public welfare and inclusive transformation despite mounting geopolitical tensions.

Keywords: Transformative Innovation Policy; State Governance; Sustainability Transitions; Libertarianism; Geopolitical Conflicts; Mission-Oriented Policy (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035344338
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