Scientific advance and innovation are major sources of economic growth and are crucial for making development socially and environmentally sustainable. A critical question is: Will private enterprises invest sufficiently in research technological development and innovation and, if not, to what degree and how should governments engage in the support of science, technology, and innovation? While neoclassical economists point to market failure as the main rationale for innovation policy, evolutionary economists point to the role of government in building stronger innovation systems and creating wider opportunities for innovation. Research shows that the transmission mechanisms between scientific advance and innovation are complex and indirect. There are other equally important sources of innovation including experience-based learning. Innovation is increasingly seen as a systemic process, where the feedback from users needs to be taken into account when designing public policy. Science and innovation policy may aim at accelerating knowledge production along well-established trajectories, or it may aim at giving new direction to the production and use of knowledge. It may be focused exclusively on economic growth, or it may give attention to impact on social inclusion and the natural environment. An emerging topic is to what extent national perspectives continue to be relevant in a globalizing learning economy facing multiple global complex challenges, including the issue of climate change. Scholars point to a movement toward transformative innovation policy and global knowledge sharing as a response to current challenges.
|Title of host publication||Oxford Research Encyclopaedia of Business and Management|
|Number of pages||27|
|Publisher||Oxford University Press|
|Publication date||19 Jun 2019|
|Publication status||Published - 19 Jun 2019|