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Distribution sensitive innovation policies: Conceptualization and empirical examples

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  • Zehavi, Amos
  • Breznitz, Dan

Abstract

Innovation is essential to economic growth. However, it appears that the ways in which we pursue innovation policies generate economic inequities. In this paper, we explore policies that could be devised and employed with the aim of increasing growth while taking into account economic distribution. We call these policies distribution-sensitive innovation policies (DSIP). Following an exploratory theoretical approach, the paper focuses on a specific set of DSIP which are focused on particular groups of disadvantaged producers and consumers. We first categorize such programs into four types, and then employ a comparative approach to analyze existing programs in terms of these types, first, in our primary case study, Israel, and, then, using the United States, Germany, and Sweden as limited shadow cases to elaborate on the finding from our primary case. We conclude by arguing that although these programs are currently driven primarily by a concern for economic efficiency and not distribution, they show that our approach utilizing innovation policy to reach dual economic and social policy goals has potential for success.

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  • Zehavi, Amos & Breznitz, Dan, 2017. "Distribution sensitive innovation policies: Conceptualization and empirical examples," Research Policy, Elsevier, vol. 46(1), pages 327-336.
    • Handle: RePEc:eee:respol:v:46:y:2017:i:1:p:327-336
    DOI: 10.1016/j.respol.2016.11.007
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    2. Enrico Vanino & Stephen Roper & Bettina Becker, 2020. "Knowledge to Money: Assessing the Business Performance Effects of Publicly Funded R&D Grants," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 20-24, January.
    3. Fulvio Castellacci, 2021. "Innovation and social welfare: A new research agenda," Working Papers on Innovation Studies 20210705, Centre for Technology, Innovation and Culture, University of Oslo.
    4. S. V. Pronichkin & I. B. Mamay & R. N. Bafoev, 2019. "Problems and prospects for evaluating the effectiveness of scientific activity in the chemical-technological field," Russian Journal of Industrial Economics, MISIS, vol. 12(2).
    5. Thanos Fragkandreas, 2021. "Innovation Systems and Income Inequality: In Search of Causal Mechanisms," Working Papers 56, Birkbeck Centre for Innovation Management Research, revised Nov 2021.
    6. Lee, Neil & Clarke, Stephen, 2019. "Do low-skilled workers gain from high-tech employment growth? High-technology multipliers, employment and wages in Britain," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    7. Marshall, Fiona & Dolley, Jonathan, 2019. "Transformative innovation in peri-urban Asia," Research Policy, Elsevier, vol. 48(4), pages 983-992.
    8. Theo Papaioannou, 2020. "Reflections on the entrepreneurial state, innovation and social justice," Review of Evolutionary Political Economy, Springer, vol. 1(2), pages 199-220, August.
    9. Theo Papaioannou, 2021. "The Idea of Justice in Innovation: Applying Non-Ideal Political Theory to Address Questions of Sustainable Public Policy in Emerging Technologies," Sustainability, MDPI, vol. 13(5), pages 1-14, March.

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