Path to Sustainable Development – a Kaleckian-Schumpeterian Synthesis
Chapter 6: Political Aspects of Innovation and Eco-sustainability
The necessity that ‘something must be done in the slump’ is agreed; but the fight continues, firstly, as to what should be done in the slump (i.e. what should be the direction of government intervention). (Kalecki (1943) 1990, p.353) Innovation as public policy At the beginning of Chapter 2, innovation in the twenty-first century was identified with all that is creative and progressive, becoming the quintessential feature of business and economic development. However, the corollary to ‘good’ innovation is the ‘bad’ of income inequality and the ‘ugly’ of predatory accumulation of wealth. As a result, the advocacy of public innovation policy has crossed over from being one aspect of industrial policy in the mid-twentieth century – through patent rights, government procurement and research and development (R&D) support (Scherer, 1970, pp.122–5); to reach distinguished status as a top national priority in the early twenty-first century – requiring holistic systems review of a country’s innovation policy and performance (OECD, 2005b). First, a systematic review of all member OECD countries’ innovation policies was initiated along with surveys and ‘barometers’. Then appeared a plethora of government initiatives – national independent reviews (e.g. Cutler Innovation Review in Australia), policy discussion ‘green papers’ (e.g. Growth and Innovation Framework in New Zealand) and policy document ‘white papers’ (e.g. Science Budget and Innovation Letter in the Netherlands). Given this recent strong political focus on public innovation policy as an economic strategy, there needs to be a framework to conduct empirical research and also to design appropriate innovation policies. A...
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