IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/19387.html
   My bibliography  Save this paper

Innovation Policy and Development in the ICT Paradigm: Regional and Theoretical Perspectives

Author

Listed:
  • Kalvet, Tarmo

Abstract

Innovation policy forms a foundation, and probably the most important one, of economic development in any society, especially in today’s society driven by information and communication technologies (ICT). The Schumpeterian processes of creative destruction need stewardship – creative destruction management – and this paper aims to explore some key aspects of innovation policies from the perspective of the current ICT paradigm. The basic feature of the latter is the trend towards globalisation, towards facilitation of heterogeneity, diversity, and adaptability, which leads to market segmentation and niche proliferation as well as to production disaggregation and segment relocation. Analysis of innovation policies of the Central and Eastern European (CEE) countries shows that their current national innovation system based innovation policies are lacking several crucial features. First, one of the central arguments of creative-destruction management is paradigm-based, activity-specific priority-setting, but such wide-scale selection mechanisms have been and are still missing, and currently innovation policies by themselves can not lead to economic restructuring. Second, the whole concept of innovation systems has to a large extent focused on activities related to the production and use of codified scientific and technical knowledge leading to the situation where existing policies have essentially nothing to do with the average companies. Third, the current paradigm is characterised by globalised and open financial markets which, in case of the CEE countries, have enforced speculative economic growth, fuelled by domestic consumption and based on foreign borrowing. Finally, while the state is generally considered an important factor influencing how concrete innovation systems develop, linkages to policymaking itself and administrative capacities are quite missing and need to be revived, including the reconsideration of governance.

Suggested Citation

  • Kalvet, Tarmo, 2009. "Innovation Policy and Development in the ICT Paradigm: Regional and Theoretical Perspectives," MPRA Paper 19387, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19387
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/19387/1/MPRA_paper_19387.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    3. Luc Soete, 2007. "From Industrial to Innovation Policy," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 273-284, December.
    4. Milo Bianchi & Magnus Henrekson, 2005. "Is Neoclassical Economics still Entrepreneurless?," Kyklos, Wiley Blackwell, vol. 58(3), pages 353-377, July.
    5. Jan Fagerberg, 2003. "Innovation: A Guide to the Literature," Working Papers on Innovation Studies 20031012, Centre for Technology, Innovation and Culture, University of Oslo.
    6. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
    7. Bengt-åke Lundvall & Jan Vang & K.J. Joseph, 2009. "Innovation System Research and Developing Countries," Chapters,in: Handbook of Innovation Systems and Developing Countries, chapter 1 Edward Elgar Publishing.
    8. Chaminade, Cristina & Edquist, Charles, 2005. "From theory to practice: the use of systems of innovation approach in innovation policy," Papers in Innovation Studies 2005/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    9. Erik S. Reinert & Rainer Kattel, 2007. "European Eastern Enlargement as Europe's Attempted Economic Suicide?," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 14, TUT Ragnar Nurkse School of Innovation and Governance.
    10. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    11. Pérez, Carlota, 2001. "Technological change and opportunities for development as a moving target," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    12. Chang, Ha-Joon, 1993. "The Political Economy of Industrial Policy in Korea," Cambridge Journal of Economics, Oxford University Press, vol. 17(2), pages 131-157, June.
    13. Wolfgang Drechsler, 2009. "The Lisbon Agenda and Public Administration," Chapters,in: Europe, Globalization and the Lisbon Agenda, chapter 21 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    innovation; economic development; innovation policy; ICT Paradigm; open innovation; governance; dissertations;

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:pra:mprapa:19387. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.