Scandinavian Working Papers in Economics

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

No 2014/29: Institutions and Regulations in Innovation Systems: Effects, Problems and Innovation Policy Design

Susana Borrás () and Charles Edquist ()
Additional contact information
Susana Borrás: Department of Business and Politics, Copenhagen Business School, Denmark and CIRCLE, Lund University, Sweden
Charles Edquist: CIRCLE, Lund University, Sweden (Holder of the Ruben Rausing Chair in Innovation Research)

Abstract: Institutions (including regulations) are constitutive elements of innovation systems, and therefore cornerstones of innovation policy. Focusing on (soft and hard) regulation, the paper identifies the most salient regulatory areas from the perspective of the innovation system. When asking about the effects of regulation on innovation, the paper argues that there are three key issues that need careful empirical analysis; namely, whether regulation is effective and efficient in terms of reducing uncertainty and generating incentives, whether it is able to generate ultimately wider social benefits for the innovativeness of the society at large; and the extent to which regulation is adapting to new (social, economic and technological) contexts and is socially legitimate and accepted. These are potentially the three problems that innovation policy needs to address in this area. This provides guidance for the design and re-design of innovation policy, so that policy makers may analyse empirically the social dynamics actually generated by regulation rather than simply assuming deductively their effects.

Keywords: Innovation system; innovation policy; knowledge production; R&D; universities; innovation policy instruments; institutions; institutional change

JEL-codes: L38; M38; O25; O31; O32; O33

20 pages, December 15, 2014

Full text files

201429_Borras_Edquist.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Torben Schubert ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:35:11.