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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2006/4:
Rationales for public policy intervention from a systems of innovation approach: the case of VINNOVA

Cristina Chaminade () and Charles Edquist ()

Abstract: This paper discusses the implications of the adoption of the National Innovation Systems approach for innovation policy. It starts by positioning the 'systemic' approach against other theoretical approaches, such as neoclassical theories. The authors argue that the adoption of one or the other frameworks leads to different criteria for intervention. The main rationales for public intervention under each approach are then discussed. We make a distinction between classic market failures (grounded in neoclassical theory) and systemic problems -often called systemic failures - (grounded in the evolutionary/systemic approaches). On the basis of this, the authors will discuss other important issues to be considered when discussing public policy intervention under a system of innovation. The example of VINNOVA will be used to illustrate the discussion.

Keywords: systems of innovation; innovation policy; (follow links to similar papers)

JEL-Codes: O30; O38; (follow links to similar papers)

20 pages, March 1, 2006

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