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Rationales and Instruments for Public Innovation Policies

  • Takalo, Tuomas

Economic interest in innovation policy largely arises from the fundamental importance of innovation to social welfare and from well-known inefficiencies in innovation in a competitive market environment. As a result, a wide variety of public innovation policies are used in practice. This report reviews the economic justifications for public innovation policies and compares the existing policy tools, paying particular attention to the Finnish innovation policy environment.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1185.

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Length: 24 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:rif:dpaper:1185
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  18. Chaminade, Cristina & Edquist, Charles, 2006. "Rationales for public policy intervention from a systems of innovation approach: the case of VINNOVA," Papers in Innovation Studies 2006/4, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  19. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
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  21. de Meza, David & Webb, David C, 1987. "Too Much Investment: A Problem of Asymmetric Information," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 281-92, May.
  22. Takalo, Tuomas & Tanayama , Tanja & Toivanen , Otto, 2013. "Market failures and the additionality effects of public support to private R&D: Theory and empirical implications," Research Discussion Papers 2/2013, Bank of Finland.
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  26. Benjamin Russo, 2004. "A cost-benefit analysis of R&D tax incentives," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 313-335, May.
  27. Takalo, Tuomas & Tanayama, Tanja, 2008. "Adverse selection and financing of innovation: is there a need for R&D subsidies?," Research Discussion Papers 19/2008, Bank of Finland.
  28. Nicholas Bloom & Rachel Griffith & John Van Reenen, 2007. "Do R&D Tax Credits Work? Evidence from a Panel of Countries 1979-1997," Discussion Papers 07-020, Stanford Institute for Economic Policy Research.
  29. Josh Lerner, 2002. "When Bureaucrats Meet Entrepreneurs: The Design of Effective "Public Venture Capital" Programmes," Economic Journal, Royal Economic Society, vol. 112(477), pages F73-F84, February.
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  31. Giovanni Cerulli, 2010. "Modelling and Measuring the Effect of Public Subsidies on Business R&D: A Critical Review of the Econometric Literature," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 421-449, 09.
  32. Bronwyn H. Hall & John van Reenen, 1999. "How Effective are Fiscal Incentives for R&D? A New Review of the Evidence," NBER Working Papers 7098, National Bureau of Economic Research, Inc.
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  34. Takalo, Tuomas & Tanayama, Tanja & Toivanen, Otto, 2008. "Evaluating innovation policy: a structural treatment effect model of R&D subsidies," Research Discussion Papers 7/2008, Bank of Finland.
  35. Robin Boadway & Michael Keen, 2006. "Financing and Taxing New Firms under Asymmetric Information," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(4), pages 471-502, December.
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