IDEAS home Printed from
   My bibliography  Save this article

The Regional Innovation Paradox: Innovation Policy and Industrial Policy


  • Oughton, Christine
  • Landabaso, Mikel
  • Morgan, Kevin


This paper explores the regional innovation paradox and its policy implications. The regional innovation paradox refers to the apparent contradiction between the comparatively greater need to spend on innovation in lagging regions and their relatively lower capacity to absorb public funds earmarked for the promotion of innovation and to invest in innovation related activities compared to more advanced regions. Empirical analysis of the nature of the paradox shows that there are strong complementarities between business, education and government spending on R&D and that technology/innovation policy and industrial policies tend to work in opposite directions. Our analysis suggests that resolution of the paradox requires policies that: (i) increase the innovation capacity of regions by working both on the demand and the supply side of the system to increase both private and public sector investment in innovation activity; and (ii) integrate technology policy and industrial policy by encouraging expenditure on innovation activity within mainstream industrial policy programmes. The penultimate section of the paper outlines and assesses policy initiatives/experiments along these lines and suggests how they might be developed in the future. Copyright 2002 by Kluwer Academic Publishers

Suggested Citation

  • Oughton, Christine & Landabaso, Mikel & Morgan, Kevin, 2002. "The Regional Innovation Paradox: Innovation Policy and Industrial Policy," The Journal of Technology Transfer, Springer, vol. 27(1), pages 97-110, January.
  • Handle: RePEc:kap:jtecht:v:27:y:2002:i:1:p:97-110

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jtecht:v:27:y:2002:i:1:p:97-110. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.