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Primary aim: Give an example of ”adaptive policy making”

A "Joint Problem-Solving Process" for the implementation of innovation policies. Primary aim: Give an example of ”adaptive policy making”. Perspective on Innovation Policy. In view of the innovation process: Theory on privatization of information (patents) insufficient

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Primary aim: Give an example of ”adaptive policy making”

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  1. A "Joint Problem-Solving Process" for the implementation of innovation policies Primary aim: Give an example of ”adaptive policy making”

  2. Perspective on Innovation Policy • In view of the innovation process: • Theory on privatization of information (patents) insufficient • Face-to-face interaction in the production of innovative input • Public good properties of knowledge • Externatilies in production • Creattion of networks and Regional Innovation Systems important • Difficult to enforce institutions for patents • Aoki’s theory of instituional change • Partnerships between universities and industry • Aoki’s theory of instituional change • In view of the public policy process: • Witt’s and Gerybadze’s articles on policymaking

  3. Joint Problem-Solving Process (JPSP): • The political agent (“agent of collective action”) is endogenized, i.e. participates in the market by suggesting solutions to problems through an interactiverelationship Takes into account: • Conditions for decision-making in the firms • Technologies are characterized by externalities • Circumstances surrounding politics • Dominant groups are interested in preserving old technology • Legitimacy • “Lock-in”

  4. Results 1 – 2: • Even though y is optimal if chosen by all firms, the expectations that a majority of firms will not opt for y will cause most firms to remain hesitant. As a result, the “critical mass” will not be attained • Diversity within a population of firms will trigger a switch to y. If there are enough innovating firms, they will generate an adaptation process through which the “critical mass” will be attained.

  5. Behavioral principles for a “political entrepreneur”: • Collecting information about potential agents and their expectations and choices. Subdivision of industrial innovations (Result 3) • Collecting information about possible opportunity sets of political instruments and about new combinations of policies (Result 4) • A new form of organization that economizes on information and transaction costs. A coordinator is selected, who knows both government and industry well enough, who can mobilize existing communication links to both sides (Result 5)

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