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Innovation and the State: Towards an Evolutionary Theory of Policy Capacity

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  • Erkki Karo
  • Rainer Kattel

Abstract

In this paper we propose an evolutionary analytical approach to policy capacity with a specific focus on policy domains, where uncertainty and need for policy innovations, or novelty creation, is a central concern for effective policies. From an evolutionary perspective, the core elements of policy capacity are: a) organizational routines and their varieties, b) search and selection and the endogenous and exogenous sources of novelty creation, c) selection and feedback environments. We operationalize these elements and illustrate the value of the evolutionary analytical perspective through discussing the evolution of science, technology and innovation (STI) policy capacities of three Asian Tigers.

Suggested Citation

  • Erkki Karo & Rainer Kattel, 2016. "Innovation and the State: Towards an Evolutionary Theory of Policy Capacity," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 72, TUT Ragnar Nurkse Department of Innovation and Governance.
    • Handle: RePEc:tth:wpaper:72
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    Cited by:

    1. Ferraz, João Carlos & Coutinho, Luciano, 2019. "Investment policies, development finance and economic transformation: Lessons from BNDES," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 86-102.

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