Edited by Jakob Edler, Paul Cunningham, Abdullah Gök and Philip Shapira
Chapter 10: The impact of policy measures to stimulate private demand for innovation
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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