THE NEW PARADIGM SHIFTS IN INNOVATION POLICIES AND THE CHANGING ROLE OF THE STATE

Year 2024, Volume: 22 Issue: 4, 1 - 21

Yiğit Kaymak , Mehmet Emin Erçakar

https://doi.org/10.11611/yead.1542086

Abstract

A new paradigm shift in innovation policies has taken place in recent years across the globe. Additionally, notably after 2008 global crisis, a return to industrial policies has begun in the World, even in developed countries. In this paper, we study the evolutionary development of innovation policies and state intervention rationales until today. In this context, to develop technological and innovative solutions to new complex societal problems, it is realized that the level of state intervention should move beyond what orthodox and evolutionary economics advocate. This new policy orientation also requires more holistic and multilateral cooperation among a wide variety of actors, including government and private sector, as well as consensus on policy objective. However, it seems unresolved where the state will be positioned in this new policy framework. At this point, a more context-specific government intervention may be recommended for the countries depending on their innovation capability level.

Keywords

Innovation Policy, State Intervention, Mission-Oriented Policy, Transformative Policy

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