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Avoiding evolutionary inefficiencies in innovation networks

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  • Pyka, Andreas

Abstract

Innovation policy is in need for a rational which allows the design and evaluation of policy instruments. In economic policy traditionally the focus is on market failures and efficiency measures are used to decide whether policy should intervene and which instrument should be applied. In innovation policy this rational cannot meaningfully be applied because of the uncertain and open character of innovation processes. Uncertainty is not a market failure and cannot be repaired. Inevitably policy makers are subject to failure and their goals are to be considered as much more modest compared to the achievement of a social optimum. Instead of optimal innovation, the avoidance of evolutionary inefficiencies becomes the centrepiece of innovation policy making. Superimposed to the several sources of evolutionary inefficiencies are socalled network inefficiencies. Because of the widespread organisation of innovation in innovation networks, the network structures and dynamics give useful hints for innovation policy, where and when to intervene. --

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Bibliographic Info

Paper provided by University of Hohenheim, Center for Research on Innovation and Services (FZID) in its series FZID Discussion Papers with number 35-2011.

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Date of creation: 2011
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Handle: RePEc:zbw:fziddp:352011

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Keywords: innovation policy; innovation networks; uncertainty; exploration and exploitation; evolutionary inefficiencies; policy rational;

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  1. Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, Elsevier, vol. 11(3), pages 147-162, June.
  2. Cantner, Uwe & Pyka, Andreas, 2001. "Classifying technology policy from an evolutionary perspective," Research Policy, Elsevier, Elsevier, vol. 30(5), pages 759-775, May.
  3. Andreas Pyka & Paul Windrum, 2001. "The Self-Organisation of Strategic Alliances," Discussion Paper Series, Universitaet Augsburg, Institute for Economics 209, Universitaet Augsburg, Institute for Economics.
  4. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 19(1), pages 25-46, February.
  5. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, Springer, vol. 14(1), pages 1-35, January.
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