Handbook of Innovation Policy Impact
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Handbook of Innovation Policy Impact

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

Innovation underpins competitiveness, is crucial to addressing societal challenges, and its support has become a major public policy goal. But what really works in innovation policy, and why? This Handbook, compiled by leading experts in the field, is the first comprehensive guide to understanding the logic and effects of innovation polices. The Handbook develops a conceptualisation and typology of innovation policies, presents meta-evaluations for 16 key innovation policy instruments and analyses evidence on policy-mix. For each policy instrument, underlying rationales and examples are presented, along with a critical analysis of the available impact evidence. Providing access to primary sources of impact analysis, the book offers an insightful assessment of innovation policy practice and its evaluation.
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Chapter 10: The impact of policy measures to stimulate private demand for innovation

Jakob Edler


This chapter reviews policy instruments that are primarily geared towards supporting private demand for innovation. It starts by introducing the logic of demand-side innovation policy. It defines demand-side innovation policy as all public action to induce innovation and/or speed up the diffusion of innovation through increasing the demand for innovation, defining new functional requirements for products and services and/or improving user involvement in innovation production (user-driven innovation). A typology of demand-side instruments is suggested. The core of the chapter is the discussion of the effects of the main demand-side instruments. The chapter also highlights evidence and intelligence gaps in the literature. It finally demonstrates that innovation policy has still to learn from other policy domains with regard to the design and effects of demand-side measures, and, conversely, domain policies have to improve their appreciation of the potential of demand-side measures to support innovation.

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