Demand-driven innovation policies in the EU
Camilla Jensen and
Itzhak Goldberg
No 467, CASE Network Studies and Analyses from CASE-Center for Social and Economic Research
Abstract:
The objective of the PICK-ME (Policy Incentives for Creation of Knowledge – Methods and Evidence) research project is to provide theoretical and empirical perspectives on innovation which give a greater role to the demand-side aspect of innovation. The main question is how can policy make enterprises more willing to innovate? This task is fulfilled by identifying what we consider the central or most salient aspect of a demand-side innovation-driven economy, which is the small and entrepreneurial yet fast growing and innovative firm. We use the term ?Gazelle? to signify this type of firm throughout the paper. The main concern of policy-makers should therefore be how to support Gazelle type of firms through various policies. The effectiveness of different policy instruments are considered. For example, venture capitalism is in the paper identified as an important modern institution that renders exactly the type of coordination necessary to bring about an innovation system more orientated towards the demand side. This is because experienced entrepreneurs with superior skills in terms of judging the marketability of new innovations step in as financiers. Other factor market bottlenecks on the skills side must be targeted through education policies that fosters centers of excellence. R&D incentives are also considered as a separate instrument but more a question for future research since there is no evidence available on R&D incentives as a Gazelle type of policy. Spatial policies to foster more innovation have been popular in the past. But we conclude that whereas the literature often finds that new knowledge is developed in communities of physically proximate firms, there is no overshadowing evidence showing that spatial policies in particular had any impact on generating more of the Gazelle type of firms.
Keywords: Innovation; demand-side driven policies; Gazelles; bottlenecks in factor markets; venture capitalism; ontology of knowledge; education systems; clusters (search for similar items in EconPapers)
JEL-codes: B52 B53 D78 D83 G24 M13 N94 O3 O43 (search for similar items in EconPapers)
Pages: 39
Date: 2014-02
New Economics Papers: this item is included in nep-cse, nep-ent, nep-eur, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://case-research.eu/sites/default/files/publi ... 6A%20468_updated.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:sec:cnstan:0468
Access Statistics for this paper
More papers in CASE Network Studies and Analyses from CASE-Center for Social and Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Anna Budzynska ( this e-mail address is bad, please contact ).