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The innovation systems approach: an Austrian and Ostromian perspective

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  • Paul Lewis

    (King’s College London Bush House (NE))

Abstract

The innovation systems (IS) approach—developed by Richard Nelson, Christopher Freeman and Bengt-Ake Lundvall, amongst others—has become perhaps the dominant approach in the academic literature for the study of innovation. It has also exerted considerable influence on policy. This paper examines both the theory underpinning the IS approach, which bears considerable affinities with Austrian economics, and also its policy implications. It is argued that the work of Friedrich Hayek and Elinor Ostrom in particular can be used to draw attention to some potential difficulties with the way in which the IS approach is often used to guide policy. Ideas drawn from Austrian economics, as well as the work of Elinor Ostrom, are used to help develop and improve the IS approach, both theoretically and in terms of its approach to policy.

Suggested Citation

  • Paul Lewis, 2021. "The innovation systems approach: an Austrian and Ostromian perspective," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(1), pages 97-114, March.
    • Handle: RePEc:kap:revaec:v:34:y:2021:i:1:d:10.1007_s11138-020-00507-8
    DOI: 10.1007/s11138-020-00507-8
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    3. Khan, Muhammad Salar, 2022. "Absorptive capacities and economic growth in low- and middle-income economies," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 156-188.

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