The Innovation Imperative

The Innovation Imperative

National Innovation Strategies in the Global Economy

Edited by Göran Marklund, Nicholas S. Vonortas and Charles W. Wessner

As a result of globalization, strategies for investments in innovation capabilities have gained considerably in importance for businesses, research institutions and policymakers. Public policy has to provide conditions for investments in R & D and innovation that are internationally attractive and effective in stimulating innovation, economic growth and job-creation. This book focuses on the changing roles and challenges of innovation and growth policy, and the strategies and measures that are critical in a globalizing world. It provides guidance for innovation policy strategy formulations and design of innovation policy measures.

Chapter 11: Critical Dimensions of Innovation Policy: Challenges for Sweden and the EU

Göran Marklund

Subjects: economics and finance, economics of innovation, innovation and technology, economics of innovation, innovation policy


Göran Marklund 11.1 INTRODUCTION Competition and competitiveness are at the heart of economic systems. Business firms in different nations are increasingly competing, either directly or indirectly, with foreign-based firms. Business competitiveness is essential not only to business firms, but also to the performance of national and regional economies. Policy strategies and design are an integral part of business competitiveness, since public institutions and policy are deeply and inherently embedded in all kinds of business activities – indirectly as the provider of general and specific conditions of fundamental importance for general business incentives and opportunities. And directly as the provider of markets, through public demand, and resources, through public investments and capital, which are often of critical importance for different kinds of business activities. Business renewal is essential to sustained competitiveness in competitive business environments: without it, competition will eventually erode the very value basis of businesses (Schumpeter, 1934). Innovation is at the heart of business renewal and should be understood as the generation of new or improved businesses through the transformation of new ideas or new combinations of existing ideas into new business models, new products, new production processes or new business organizations. Large numbers of technology and business experimentations continuously lead to new combinations and mutations of business ideas and technologies. Some innovative combinations turn out to be more competitive than others. Innovation processes are intimately associated with entrepreneurship,1 related to business, technology and organization. This general logic of economic development, based on dynamic competition...

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