Innovation Policy as cargo cult: Myth and Reality in knowledge-led Productivity Growth
This paper questions the current emphases in innovation policy on a particular interpretation of US performance which emphasises R&D intensive high technology producing sectors, spin-offs from the science base and private sector venture capital. Whilst recognizing the important role they may play it is argued that it has been greatly exaggerated to the neglect of other key factors. One is the importance of the diffusion and use of ICT as a general purpose technology beyond the ICT and other R&D intensive high-tech producing sectors. A second is the dominant role which performance transformation in existing firms plays in driving industry level productivity compared with the direct role of new entrants. A third is the diversified role played by universities in knowledge exchange which extends beyond a narrow focus on spin offs and licensing to encompass the creation of human capital and a wide range of formal and informal business interactions. Finally there is the major role that public R&D procurement policy has played in the US in the effective provision of public rather than private sector venture capital. The paper provides a broad overview of evidence on each of these factors and considers some broad implications for innovation policy which might be drawn on the basis of that review. In particular it concludes by arguing that the crafting of innovation policy in the context of any specific national innovation system requires a careful consideration of the structural features of that context and the particular opportunities and challenges facing policy practitioners in it. An imperfect interpretation of the experience of one country's system is unlikely to be an appropriate guide to innovation system failure or success elsewhere.
|Date of creation:||Jun 2007|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.cbr.cam.ac.uk/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hall, Bronwyn & Link, Albert & Scott, John, 2010.
"Universities as Research Partners,"
10-9, University of North Carolina at Greensboro, Department of Economics.
- Bronwyn H. Hall & Albert N. Link & John T. Scott, 2001. "Universities as Research Partners," Development and Comp Systems 0012001, EconWPA.
- Bronwyn H. Hall & Albert N. Link & John T. Scott, 2000. "Universities as Research Partners," NBER Working Papers 7643, National Bureau of Economic Research, Inc.
- Hall, Browyn H. & Link, Albert N. & Scott, John T., 2000. "Universities as Research Partners," Department of Economics, Working Paper Series qt1np920r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall, Albert N. Link and John T. Scott., 2000. "Universities as Research Partners," Economics Working Papers E00-276, University of California at Berkeley.
- Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003.
"The case of the missing productivity growth: or, does information technology explain why productivity accelerated in the United States but not the United Kingdom?,"
Working Paper Series
WP-03-08, Federal Reserve Bank of Chicago.
- Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The Case of the Missing Productivity Growth: Or, Does Information technology explain why productivity accelerated in the United States but not the United Kingdom?," Harvard Institute of Economic Research Working Papers 2021, Harvard - Institute of Economic Research.
- Eric J. Bartelsman & John Haltiwanger & Stefano Scarpetta, 2004.
"Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries,"
Tinbergen Institute Discussion Papers
04-114/3, Tinbergen Institute.
- Bartelsman, Eric & Haltiwanger, John C. & Scarpetta, Stefano, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," IZA Discussion Papers 1374, Institute for the Study of Labor (IZA).
- Bartelsman, Eric & Haltiwanger, John & Scarpetta1, Stefano, 2004. "Microeconomic evidence of creative destruction in industrial and developing countries," Policy Research Working Paper Series 3464, The World Bank.
- Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
- Richard Disney & Jonathan Haskel & Ylva Heden, 2003.
"Restructuring and productivity growth in uk manufacturing,"
Royal Economic Society, vol. 113(489), pages 666-694, 07.
- Disney, Richard F & Haskel, Jonathan & Heden, Ylva, 2000. "Restructuring And Productivity Growth In UK Manufacturing," CEPR Discussion Papers 2463, C.E.P.R. Discussion Papers.
- Rachel Griffith & Heike Harmgart, 2005. "Retail productivity," IFS Working Papers W05/07, Institute for Fiscal Studies.
- Bronwyn H. Hall, 2004.
"Exploring the Patent Explosion,"
NBER Working Papers
10605, National Bureau of Economic Research, Inc.
- Bronwyn Hall, 2004. "Exploring the patent explosion," ESRC Centre for Business Research - Working Papers wp291, ESRC Centre for Business Research.
- Sampat, Bhaven N. & Mowery, David C. & Ziedonis, Arvids A., 2003. "Changes in university patent quality after the Bayh-Dole act: a re-examination," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1371-1390, November.
- Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
- Lucia Foster & John Haltiwanger & C.J. Krizan, 2002.
"The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade,"
NBER Working Papers
9120, National Bureau of Economic Research, Inc.
- C.J. Krizan & John Haltiwanger & Lucia Foster, 2002. "The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade," Working Papers 02-18, Center for Economic Studies, U.S. Census Bureau.
- Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
- Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The Case of the Missing Productivity Growth: Or, Does Information Technology Explain why Productivity Accelerated in the US but not the UK?," NBER Working Papers 10010, National Bureau of Economic Research, Inc.
- Shahid Yusuf & Kaoru Nabeshima, 2007. "How Universities Promote Economic Growth," World Bank Publications, The World Bank, number 6631, June.
When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp348. 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: (Howard Cobb)
If references are entirely missing, you can add them using this form.