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Great expectations: the promises and limits of innovation policy in addressing societal challenges

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  • Laatsit, Mart

    (CIRCLE, Lund University)

  • Grillitsch, Markus

    (CIRCLE, Lund University)

  • Fünfschilling, Lea

    (CIRCLE, Lund University)

Abstract

In the policy discourse on societal challenges it has become common to think of innovation policy as the universal tool for addressing societal challenges. However, we argue that innovation policy has limits to what it can do, and for it to remain a useful tool for tackling societal challenges, it is necessary to re-assess its role. Thus, this paper addresses the following research questions: What are the theoretical implications of the augmented expectations of innovation policy to deliver system change, what role can innovation policy play in contributing to system change, and what conditions this role. Linking to the literature on wicked problems and radical innovations, we differentiate between disruptive and progressive system change, and show that the potential role of innovation policy differs between these two types of change. Acknowledging both the potential and limitations of innovation policy, we make a proposition for how an ambitious innovation policy contributing to system change may be conceived.

Suggested Citation

  • Laatsit, Mart & Grillitsch, Markus & Fünfschilling, Lea, 2022. "Great expectations: the promises and limits of innovation policy in addressing societal challenges," Papers in Innovation Studies 2022/9, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2022_009
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    References listed on IDEAS

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    1. Grillitsch, Markus & Asheim, Bjørn, 2022. "Bouncing back, forward, and beyond: Towards regenerative regional development in responsible value chains," Papers in Innovation Studies 2022/11, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    Innovation policy; System change; Societal challenges;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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