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Government policies towards innovation: A review of empirical findings


  • Pavitt, K


Since the Second World War, governments in Western mixed economies have become increasingly involved in promoting technical innovation in industry. The analytical basis for this involvement is deficient, as is empirical information and analysis on its effects. But it is probable that, from an economic viewpoint, governments have been mistaken in supplementing normal industrial activity by financing large-scale development projects in technically sophisticated industry. They should instead be financing longer-term basic and applied research, as well as increasing technical awareness in more traditional industries. More needs to be known about the factors affecting innovative decisions in industrial firms, including the effects of industry-specific characteristics and of government policies.

Suggested Citation

  • Pavitt, K, 1976. "Government policies towards innovation: A review of empirical findings," Omega, Elsevier, vol. 4(5), pages 539-558.
  • Handle: RePEc:eee:jomega:v:4:y:1976:i:5:p:539-558

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    Cited by:

    1. S. Roper, 1998. "Public Support for Near-market R&D: The Northern Ireland Experience," Regional Studies, Taylor & Francis Journals, vol. 32(3), pages 295-299.
    2. Zouhour Karray & Mohamed Kriaa, 2009. "Innovation and R&D Investment of Tunisian Firms: A Two-Regime Model with Selectivity Correction," Working Papers 484, Economic Research Forum, revised Apr 2009.
    3. Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October.

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