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Paul Cunningham

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Paul Cunningham and Abdullah Gök

Measures to foster longer-term cooperation between science and industrial actors represent a significant part of the innovation policy portfolio. Governments support these links to achieve economies of scope and scale, to overcome disincentives of transaction costs and knowledge spillovers and to provide support for knowledge transfer. The evaluations of collaborative schemes share several challenges common to the evaluation of other innovation support schemes, such as problems of time lag, spillovers and behavioural effects, with the added challenge of defining the scope of impact across and beyond the cooperation. Providing a broad evidence base, the chapter nevertheless focuses on a number of extensive evaluations of high-level R & D collaboration. The chapter provides a set of general lessons for the design and implementation of collaborative support instruments, such as alignment of collaboration programmes with other programmes, some provision of formation and education within the programme, and support of managing collaboration projects while keeping bureaucracy at a minimum. Future evaluations of collaboration programmes need to take account of the specificities of each programme and its context much better, and need more convincing ways of demonstrating the causality and contribution of programmes.

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Paul Cunningham and Ronnie Ramlogan

Networks (as distinct from geographically co-located clusters) have become an important component of technology and innovation policy in several countries and at the supranational level. However, it has been noted that the issue of appropriate policies for network formation and development is not clear cut and that there is a need to clarify both their rationale and the available instruments for facilitating networking. The chapter focuses on the evaluation of network policies and their role and impact on innovation, particularly since innovation is now understood to depend on a variety of feedback loops within the context of the structured relationships that constitute the so-called innovation ecology. We examine the historical development of industrial network policies and their rationales, such as their later adoption by governments to address the policy goal of increasing the exchange of knowledge between actors in the public and private sectors. The range of typical policy instruments is examined and the challenges for their evaluation assessed, before proceeding to a review of the evidence arising from a number of important studies. We conclude with a number of general lessons concerning specific network characteristics from examples where particular policy models have been successful.

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Paul Cunningham, Abdullah Gök and Philippe Larédo

Direct support of R & D to individual companies, particularly through grants and loans, is a cornerstone of innovation policy. While initially targeted at large firms, the focus of direct measure is now very often on SMEs, and on specific sectors or technologies or – more recently – targeted at societal challenges and to mitigate the adverse financial climate within which firms currently operate. R & D grants and loans are generally simple instruments to implement. They show a range of quantifiable input effects (e.g. increased R & D expenditure) and output effects (e.g. increased turnover with innovation based on R & D and an increased level of invention measured with patents). Evaluations also find a change towards riskier and more ambitious innovation activities supported by direct measures, especially for small and younger firms. However, evaluations struggle to determine the overall effects, especially the less tangible outcomes such as effects on behaviour, skills and capacity, and long-term spillover effects. Also, the ‘average’ success of a programme tends to be based on a small number of successful cases. The chapter finds a crowding-out effect of firm spending on R & D above a subsidisation rate of 20 per cent, and also indicates that, while firms do better with repeated support, especially when linking direct and indirect support, this risks creating a subsidy culture for a few and lack of support for many. Finally, direct support measures perform better when accompanied by a complementary set of services and further support.

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John Hartley, Stuart Cunningham and Paul Ormerod

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Edited by Jakob Edler, Paul Cunningham, Abdullah Gök and Philip Shapira

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Edited by Jakob Edler, Paul Cunningham, Abdullah Gök and Philip Shapira

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Jakob Edler, Abdullah Gök, Paul Cunningham and Philip Shapira

This chapter introduces the reader to the wealth of evidence in this Handbook, and provides guidance for the interpretation of its findings. It first presents the basic definitions and delineations of innovation policy and discusses innovation policy rationales and their limitations. The chapter then reflects on the different understandings of policy instruments and on the nature of policy impact, highlighting the benefits, value and limits of impact analysis. Against this background, a typology of innovation policy instruments is presented which has been developed for this Handbook to systematise the evidence and which allows distinct entry points for readers interested in different kinds of instruments. After providing an explanation of the methodology applied throughout the Handbook, the chapter closes with reflections on how to interpret the findings of the book.

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Paul Cunningham, Jakob Edler, Kieron Flanagan and Philippe Larédo

As innovation policy instruments are never applied in isolation, this chapter reviews the evidence on policy mixes and the interplay of instruments in innovation policy. The chapter starts with a multi-dimensional conceptualisation of mixes and interplay, in particular distinguishing between designed versus emergent mixes. Overall, the evidence and evaluation practice as to policy mix and interplay are scarce, reflecting not only the challenges of analysing the interplay of instruments, but also the general neglect in policy making to take interplay into consideration. The chapter first presents and analyses evidence from the few evaluations which have explicitly examined how instruments interact, focusing on interplay between direct and indirect measures as well as supply and demand measures. In general, the additive effect of multiple measures targeting the same actor groups is limited. Secondly, the chapter looks at evidence from reviews of policy mixes at the country or system level. Those country reviews have mainly been conducted under the auspices of the OECD or the EU. They highlight the trends of applying policy mixes and comment on their appropriateness, identify common policy gaps and coordination issues, but rarely deliver hard evidence of system-wide interplay. Thirdly, the review looks at instances where policies or instruments have been deliberately used together, as designed mixes across policy institutions or as the portfolios of specific agencies. The chapter finally draws lessons as to policy mix practice using the conceptual framework developed.

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Jakob Edler, Philip Shapira, Paul Cunningham and Abdullah Gök

This concluding chapter synthesises the main findings and insights from the study of available evidence on the effectiveness of innovation policy intervention as presented in the Handbook. It begins by reminding the reader of the overall concept of innovation policy and impact followed throughout the Handbook. It then highlights key findings from the evidence on the effectiveness of the range of innovation policy instruments. It discusses overall lessons regarding the effectiveness and impacts of these innovation support measures. In addition, the concluding chapter offers observations and insights about the state of evidence on the effectiveness of policies in this domain, including considerations of evaluation methods, approaches and gaps. This provides a basis for deliberation on improved policy design and implementation, as well as concluding thoughts about evaluation and the production of evidence more broadly to support innovation policy making in the future.