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Avoiding evolutionary inefficiencies in innovation networks


  • Pyka, Andreas


Innovation policy is in need for a rational which allows the design and evaluation of policy instruments. In economic policy traditionally the focus is on market failures and efficiency measures are used to decide whether policy should intervene and which instrument should be applied. In innovation policy this rational cannot meaningfully be applied because of the uncertain and open character of innovation processes. Uncertainty is not a market failure and cannot be repaired. Inevitably policy makers are subject to failure and their goals are to be considered as much more modest compared to the achievement of a social optimum. Instead of optimal innovation, the avoidance of evolutionary inefficiencies becomes the centrepiece of innovation policy making. Superimposed to the several sources of evolutionary inefficiencies are socalled network inefficiencies. Because of the widespread organisation of innovation in innovation networks, the network structures and dynamics give useful hints for innovation policy, where and when to intervene.

Suggested Citation

  • Pyka, Andreas, 2011. "Avoiding evolutionary inefficiencies in innovation networks," FZID Discussion Papers 35-2011, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  • Handle: RePEc:zbw:fziddp:352011

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    References listed on IDEAS

    1. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    2. Cantner, Uwe & Pyka, Andreas, 2001. "Classifying technology policy from an evolutionary perspective," Research Policy, Elsevier, vol. 30(5), pages 759-775, May.
    3. Andreas Pyka & Paul Windrum, 2003. "The self-organisation of strategic alliances," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 245-268.
    4. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
    5. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 25-46, February.
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    Cited by:

    1. Guffarth, Daniel & Barber, Michael J., 2014. "Network evolution, success, and regional development in the European aerospace industry," FZID Discussion Papers 96-2014, University of Hohenheim, Center for Research on Innovation and Services (FZID).

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    innovation policy; innovation networks; uncertainty; exploration and exploitation; evolutionary inefficiencies; policy rational;

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