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The Evolution of Innovation Policy: Two Promising Directions for Tackling Societal Challenges

Author

Listed:
  • Isabelle Liotard

    (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord)

  • Valérie Revest

    (MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

  • Alessandro Sapio

    (PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples)

Abstract

This article explores how public innovation policies can address today's Grand Challenges − complex societal and environmental problems such as climate change and AI transformation. It presents two approaches: mission-oriented policies and local, procedural "small-wins" strategies. Mission-oriented innovation policies emphasize proactive state involvement in steering large-scale transformations, as seen in ecological and AI-focused initiatives in Europe and France. These policies aim to shape markets and foster long-term technological breakthroughs. In contrast, small-wins strategies prioritize localized, iterative innovations driven by stakeholder engagement, flexibility, and experimentation. While mission-oriented policies set broad national directions, small-wins initiatives offer bottom-up, adaptive responses tailored to specific contexts. The article argues for a complementary use of both approaches to foster sustainable and inclusive innovation. This dual framework could enable public actors to tackle systemic uncertainty, promote green and digital transitions, and build resilient innovation ecosystems across scales.

Suggested Citation

  • Isabelle Liotard & Valérie Revest & Alessandro Sapio, 2025. "The Evolution of Innovation Policy: Two Promising Directions for Tackling Societal Challenges," Post-Print hal-05325533, HAL.
    • Handle: RePEc:hal:journl:hal-05325533
    DOI: 10.3917/e.jie.048.0001
    as

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