Research and Development Policy, Innovation Policy, and Industrial Policy: An Interface

Both research and development policy and innovation policy are part of government economic policy, as science, technology, and innovation are inextricably linked to entrepreneurship. However, the connection between economics and policies with respect to science, technology, and innovation is neither simple nor straightforward. This is due to the fact that the development of science and technology has many dimensions, and its impact on society refers to more than just economic results. This has some implications for innovation policy, as its regulations cannot be based solely on economic rules, but should also include some social, cultural and psychological aspects. This article aims to identify how policies in the area of research and development (R&D), innovation policy, and other types of economic policies, and in particular industrial policy, are interrelated. Furthermore, this article will analyse the changes which have been observed recently with regard to the objectives and tools of R&D and innovation policies, together with the evolution in the understanding of innovation processes and their role in the economy. Theoretical considerations create the basis for comparing characteristics of the most important elements of R&D and innovation policy in selected countries of the European Union, Asia, and the USA.