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Making Innovation Policy Work
Learning from Experimentation
OECD, The World Bank. Edited by Mark A. Dutz, Yevgeny Kuznetsov, Esperanza Lasagabaster, Dirk Pilat. Published by : OECD Publishing , Publication date:  10 Apr 2014
Pages: 286 , Language: English
Version: E-book (PDF Format)
ISBN: 9789264185739 , OECD Code: 922012081E1
Price:   €42 | $58 | £37 | ¥5400 | MXN750
Availability: Available
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This book explores emerging topics in innovation policy for more inclusive and sustainable growth, building on concrete examples. It develops the notion of experimental innovation policy – which integrates monitoring and feedback at the policy design stage, and occurs continuously to improve impact and implementation. This approach should help improve the quality and efficiency of public expenditures supporting innovation policy.

Experimental policy making is particularly important for new and emerging innovation domains, where the scope for learning and improvement is the greatest. To make the discussion as concrete and relevant as possible for practitioners and policy makers, three emerging domains of innovation policy are explored in greater detail: innovative entrepreneurship, green innovation, and pro-poor or base-of-the-pyramid (BoP) innovation.

Table of contents:

Foreword 3
Contributors 5
Acknowledgements 6
Abbreviations and acronyms 7
Executive summary 15
-Key findings 15
-Key policy recommendations 17
Chapter 1. Making innovation policy work: The benefits and lessons of experimental innovation policy 19
Chapter 2. New open economy industrial policy: Making choices without picking winners 35
-Examples of new industrial policy 37
-Framework programmes that help scale up micro changes to the macro level 41
-Contrasts with previous generations of industrial policy 43
-Conclusion: Hayek meets List 44
-References 47
Chapter 3. “Bottom of the pyramid” innovation and pro-poor growth  49
-The need for a pro-poor growth agenda 50
-What do we mean by innovation? 52
-In what way has innovation contributed to exclusive growth? 53
-Why has innovation been exclusive? 54
-A response to marginalisation: The rise (and fall) of the AT movement 55
-The world is changing: Forces of disruption 56
-Promoting pro-poor innovation: Market or state and policy implications 61
-References 67
Chapter 4. Innovation for the “base of the pyramid”: Developing a framework for policy experimentation  71
-Definitions and rationale for BOP innovation 72
-The changing sources of innovation and new challenges 77
-The different categories of BOP innovation 84
-BOP innovations and public goods 88
-Relevant policy issues for BOP innovation 100
-A framework for BOP innovation 103
-China’s and India’s strategies for BOP innovation 110
-Conclusion 112
-References 119
Chapter 5. Incubating the incubation cycle: Two approaches to promoting techno-entrepreneurship in weak institutional environments 123
-Policy making as an endogenous process 124
-Emergence of techno-entrepreneurship and its institutional infrastructure: Twin problems of critical mass 126
-Incubation cycle and its stages 130
-The traditional approach to the incubation cycle 135
-Emerging proactive search approach: Initiation and institutionalisation of search networks  139
-Illustration of the search approach: Creation of institutional infrastructure for venture funding  143
-Conclusion 150
-References 152
Chapter 6. Supporting affordable biotechnology innovations: Learning from global collaboration and local experience  155
-Policies to foster technology adaptation 157
-Learning from performance measurement 177
-References 190
Chapter 7. Fostering innovation for green growth: Learning from policy experimentation 193
-The role of innovation for green growth 194
-The rationale for innovation policies in a green growth strategy 196
-Policies for more radical green innovation 198
-Toward increased global learning from policy experimentation 215
-References 225
Chapter 8. Making evaluations count: Toward more informed policy 229
-What is evaluation? 230
-The promise unfilled 231
-Putting results to use 234
-Increasing the prospect of utilisation 235
-Using programme theory 238
-Burden of proof: The attribution conundrum 238
-Implications 243
-References 245
Chapter 9. Scaling up and sustaining experimental innovation policies with limited resources: Peripheral Schumpeterian development agencies 247
-Schumpeterian development agencies and rapid-innovation-based competition 250
-Schumpeterian development agencies in small states 251
-Constructing a portfolio of high-technology research projects in Finland 253
-Israel’s ICT evolution 261
-Conclusion 272
-References 278


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