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Trapped by the high-tech myth: The need and chances for a new policy rationale

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  • Havas, Attila

Abstract

Against the backdrop of a strong plea for evidence-based policy, this paper juxtaposes how innovation is analyzed in mainstream economics and evolutionary economics of innovation, as well as their concomitant policy rationales. By discussing the indicators selected for the Innovation Union Scoreboard and another major EU report, it argues that the science-push model of innovation is still highly influential in the EU STI policy circles, despite a rich set of research insights stressing the importance of non-R&D types of knowledge in innovation processes. In conclusion, the chapter highlights the potential drawbacks of the persistent high-tech myth, considers possible reasons for its perseverance and discusses policy implications of the systemic view of innovation. Those include: i) STI policies should promote knowledge-intensive activities in all sectors, including low- and medium-technology industries and services; ii) it is a highly demanding set of tasks to identify systemic failures, devise appropriate policies to tackle those, and organize the required stakeholder dialogues; iii) several policies affect innovation processes and performance, perhaps even more strongly than STI policies, and hence policy goals and tools need to be orchestrated across several policy domains; iv) analysts and policy-makers need to be careful when interpreting their country’s ranking on ‘scoreboards’; v) the choice of an economics paradigm to guide policy evaluation is likely to be decisive.

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  • Havas, Attila, 2014. "Trapped by the high-tech myth: The need and chances for a new policy rationale," MPRA Paper 58393, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:58393
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    Cited by:

    1. Aleksander Szpor & Attila Havas & Vera Czesana & Lubica Slusna & Miroslav Balog, 2014. "Innovation Policies in the Visegrad Countries," Books and Reports published by IBS, Instytut Badan Strukturalnych, number visegradinnovate, May.
    2. Szalavetz, Andrea, 2019. "Industry 4.0 and capability development in manufacturing subsidiaries," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 384-395.
    3. Havas, Attila, 2016. "Recent economic theorising on innovation: Lessons for analysing social innovation," MPRA Paper 77385, University Library of Munich, Germany.
    4. Figueiredo, Paulo N. & Cabral, Bernardo P. & Silva, Felipe Q., 2021. "Intricacies of firm-level innovation performance: An empirical analysis of latecomer process industries," Technovation, Elsevier, vol. 105(C).

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    More about this item

    Keywords

    Linear and networked models of innovation; Science-push; Market failure; Evolutionary economics of innovation; Systemic failures; STI policy; Opportunity costs;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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