The Theory and Practice of Innovation Policy
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The Theory and Practice of Innovation Policy

An International Research Handbook

Edited by Ruud E. Smits, Stefan Kuhlmann and Phillip Shapira

This comprehensive Handbook explores the interactions between the practice, policy, and theory of innovation. The goal is twofold: to increase insight into this dynamic process, searching for options to improve the effectiveness and efficiency of both policy and innovative practice, and to identify conceptual or empirical lacunae and questions that can guide future research. The Handbook is a joint project from 24 prominent scholars in the field, and although each chapter reveals the insights of its respective authors, two overarching theoretical perspectives provide unique coherence and consistency throughout.
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Chapter 12: Demand-Based Innovation Policy

Jakob Edler


Jakob Edler INTRODUCTION Innovation policy has become tremendously differentiated.) In part, this is a consequence of a more systematic understanding of the innovation process as described in innovation system approaches (see Chaminade & Edquist in this book), which has led to a broad understanding of functions of innovation systems and related policies to support these functions (e.g. Bradke et. al. 2007; Hekkert et al. 2007). Strikingly, although the approaches of the national innovation system originate partly in the inclusion of potential users (Lundvall 1988; 1992), and although the literature on national innovation systems includes the users of new knowledge and the customers for innovations, the demand side has long been neglected. The triangle of policymakers, policy and innovation analysts and the business community (in their claims towards innovation policymaking) had long paid little attention to stimulating demand in innovation policy. In terms of policy, all three have, grosso modo, focused on supply side strategies and activities, where subsequently the differentiation of research and innovation policy has essentially taken place. However, within the last few years, demand orientation has received growing attention again, mainly - but not exclusively - in the form of public procurement to spJr demand. Efforts are being made, above all at the European level, to raise awareness among policymakers and the business community to the potential of public demand for innovations. More ambitiously, the potential of 'lead markets' for the innovativeness and competitiveness of Europe is being tested (European Council 2006). Policy analysts have played some role in...

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