Sectors

A sectoral approach to innovation policy making and analysis is often useful, as it can take account of sector-specific innovation ecosystems and processes. A sectoral “lens” groups similar types of suppliers, consumers and other actors that firms engage with as part of their business operations. Moreover, a business sector demonstrates established patterns of knowledge creation and dissemination. Firms in the same sector have prevailing knowledge bases, management practices and innovation/production processes. They also share common institutions and regulatory frameworks. Appreciating these commonalities facilitates policy design and implementation through better target-setting and by focusing incentives and regulatory schemes. A given instrument defined within a business sector may, for instance, easily address a specific audience of firms, promote a certain type of technology transfer and engage relevant actors in the innovation system.