Policy Relevance and Theory Development in Innovation Studies

Abstract

This paper presents a brief review of the evolution of ideas of the Economics of Technological Change in the broad area of industrial structure, innovation dynamics and economic performance. Our emphasis is on contributions which might have policy relevance when it comes to the design and implementation of innovation-related policy. This review provides the general context for the discussion of some of the research findings of the European Commission Targeted Socio-Economic Research (TSER) Programme in the area of national systems of innovation. Finally, the paper explores a number of directions for further work in the area of innovation-related policy oriented research. As a result of recent empirical and analytical work, the institutional and economic aspects that theory and empirical research ought to address are much more clearly defined