Innovation PolicyDr.BertSadowskiMScTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
Innovation Policy Dr. Bert Sadowski MSc
StructureCourse review:Bringing everything back togetherToolsof innovationpolicySome recent policy discussiononstimulatingfibernetworksintheNetherlandsTechnischeUniversiteitTUEindhoveneUniversityofTechnology10/24/2013PAGE1EconomicsofInnovation2013
Structure • Course review: Bringing everything back together • Tools of innovation policy • Some recent policy discussion on stimulating fiber networks in the Netherlands Economics of Innovation 2013 10/24/2013 PAGE 1
CourseReviewTechnische UniversiteitTUeEindhovenUniversity ofTechnology10/24/2013PAGE2EconomicsofInnovation2013
Course Review Economics of Innovation 2013 10/24/2013 PAGE 2
Bringing everything back togetherProblemsituation(HC1).NLis“lagging behind"in terms innovativeMicro-performanceeconomicsDuetoinsufficientinvestmentbycompanies(BERD)·Definitions of innovations (HC2)InnovationDistinctionbetweenincrementalandradicalmanagementinnovations>problems stimulatingradicalinnovationseffectsonwholeeconomy(Apple)SourcesSourcesofinnovations(HC3).Variety of sources importantforinnovationR&Dandinnovativeperformance(HC4)PerformanceCDMmodel>characteristicsofinnovativefirmsasinput-outputscheme(differentoutputmeasures)>sizeimportantTechnischeUniversiteitTUEindhovenUniversityofTechnologyPAGE3EconomicsofInnovation201310/24/2013
Bringing everything back together • Problem situation (HC1) • NL is “lagging behind” in terms innovative performance • Due to insufficient investment by companies (BERD) • Definitions of innovations (HC2) • Distinction between incremental and radical innovations > problems stimulating radical innovations effects on whole economy (Apple) • Sources of innovations (HC3) • Variety of sources important for innovation • R&D and innovative performance (HC4) • CDM model > characteristics of innovative firms as input – output scheme (different output measures) > size important Innovation management Microeconomics Sources Performance Economics of Innovation 2013 10/24/2013 PAGE 3
Bringing everything back togetherInnovationInnovation and intellectual propertyPolicyrights (HC5)IPR.Whyintellectual propertyrights important>allowsappropriationofbenefits(patents)IndustrialDynamics and InnovationSectoral(HC6)perspectiveIndustrydynamicsmatter>lifecycles,dominantdesignMarketFailure,R&DSubsidiesandCriteriatoInnovation (HC7)interveneinWhentointervene>FormsofmarketmarketsfailureTechnische UniversiteitTUEindhovenUniversityofTechnologyPAGE4EconomicsofInnovation201310/24/2013
Bringing everything back together • Innovation and intellectual property rights (HC5) • Why intellectual property rights important> allows appropriation of benefits (patents) • Industrial Dynamics and Innovation (HC6) • Industry dynamics matter > life cycles, dominant design • Market Failure, R&D Subsidies and Innovation (HC7) • When to intervene > Forms of market failure IPR Sectoral perspective Innovation Policy Criteria to intervene in markets Economics of Innovation 2013 10/24/2013 PAGE 4