Demand-oriented innovation policy: Mapping the field and proposing a research agenda for developing countries

Authors

  • Pável Reyes-Mercado Anahuac University Mexico https://orcid.org/0000-0002-4772-7376
  • Adrianela Angeles Anahuac University Mexico
  • Guillermo Jesús Larios-Hernández Anahuac University Mexico

DOI:

https://doi.org/10.1344/jesb2020.1.j071

Keywords:

Innovation policy, Iinnovation, Supply-side, Developing countries, Problem-solving policy

Abstract

This article conducts a scoping review of demand side innovation policies and its associated instruments in relevant English language academic literature. Demand-side innovation policies aim to improve contextual conditions to encourage innovation adoption to address government-defined societal challenges. From the demand approach, innovation policy is expected to involve a directionality, which originates from collective priorities around relevant problems. Based on a scooping review of the innovation policy literature from the demand perspective, this research has characterized trends in the discussion about innovation policies that target such challenges, a perspective that complements the traditional supply side policy instruments. Findings indicate that literature on demand-side policies has mainly addressed energy and sustainability issues in European countries and China. Additionally, although demand-side policies have been advocated for a relatively long time, the literature recognizes that a policy mix involving also the supply-side can be more effective in encouraging innovation. In Latin America, demand-side policies have been poorly understood, leading to a defective implementation of policies and instruments. The stage of research on demand-side policies is still evolving and this article advances research propositions on innovation policy, with a deep focus on how they can be implemented in innovation-lagging developing countries.

References

Alkemade, Floorje, Marko P. Hekkert, and Simona O. Negro. 2011. “Transition policy and innovation policy: friends or foes?” Environmental Innovation and Societal Transitions 1 (1): 125-129.

Acs, Zoltan J. 2008. Foundations of high impact entrepreneurship. Foundations and trends in entrepreneurship. Now Publishers Inc.

Acs, Zoltan. J. 2010. “High-Impact entrepreneurship.” In Handbook of entrepreneurship research: An interdisciplinary survey and introduction, edited by Acs, Zoltan.J., and David B. Audretsch, 165-82. New York: Springer New York.

Acs, Zoltan. J., and Paulo Guilherme Correa. 2015. Identifying obstacles to high impact entrepreneurship in Latin America. The Innovation Policy Platform World Bank.

Anisimov, Ivan. 2015. “Innovation policy features in the OECD countries.” Baltic Journal of Economic Studies 1 (1): 4-9.

Arksey, Hilary, and Lisa O’Malley. 2005. “Scoping studies: towards a methodological framework.” International Journal of Social Research Methodology: Theory and Practice 8(1): 19–32.

Arocena, Rodrigo, and Judith Sutz. 2010. “Weak knowledge demand in the South: learning divides and innovation policies.” Science and Public Policy 37 (8): 571–582.

Buen, Jorund. 2006. “Danish and Norwegian wind industry: The relationship between policy instruments, innovation and diffusion.” Energy Policy 34 (18): 3887-3897.

Bugge, Marcus M., Lars Coenen, and Are Branstad. 2018. “Governing socio-technical change: Orchestrating demand for assisted living in ageing societies.” Science and Public Policy 45 (4): 468–479.

Cimoli, Mario. 2013. Developing innovation systems: Mexico in a global context. Routledge. ISBN 1136547169.

Dale-Clough, Lisa. 2015. “Public procurement of innovation and local authority procurement: Procurement modes and framework conditions in three European cities.” Innovation: The European Journal of Social Science Research 28 (3): 220–242.

Edler, Jakob, and Jan Fagerberg. 2017. "Innovation policy: what, why, and how.” Oxford Review of Economic Policy 33 (1): 2–23.

Edler, Jakob, Luke Georghiou, Knut Blind, and Elvira Uyarra. 2012. “Evaluating the demand side: New challenges for evaluation.” Research Evaluation 21 (10): 33–47.

Edquist, Charles. 2011. “Design of innovation policy through diagnostic analysis: identification of systemic problems (or failures).” Industrial and Corporate Change 20 (6): 1725-1753.

Hanley, Caroline, and Michael T. Douglass. 2014. “High road, low road, or off road? Economic development strategies in the American states.” Economic Development Quarterly 28 (3): 220-229.

Henrekson, Magnus, and Michael Stenkula. 2010. “Entrepreneurship and public policy.” In Handbook of entrepreneurship research, edited by Zontan, Acs, and David B. Audretsch, 595-637. New York: Springer.

Kanavos, Panos. 2014. “Measuring performance in off-patent drug markets: A methodological framework and empirical evidence from twelve EU member states.” Health Policy 118 (2): 229-241.

Karmarkar-Deshmukh, Rupa, and Carl E. Pray. 2009. “Private sector innovation in biofuels in the United States: induced by prices or policies?” AgBioForum 12 (1): 1-8.

Kesidou, Effie, and Pelin Demirel. 2012. “On the drivers of eco-innovations: Empirical evidence from the UK.” Research Policy 41 (5): 862-870.

Kuhlmann, Stefan, and Arie Rip. 2018. “Next-generation innovation policy and grand challenges.” Science and Public Policy 45 (4): 448-454.

Jang, Eun Kyung, Mi Sun Park, Tae Woo Roh, and Ki Hoo Han. 2015. “Policy instruments for eco-innovation in Asian countries.” Sustainability 7 (9): 12586-12614.

Jiang, Cailou, Ying Zhang, Maoliang Bu, and Weishu Liu. 2018. “The effectiveness of government subsidies on manufacturing innovation: Evidence from the new energy vehicle industry in China.” Sustainability 10 (6):1692.

Landoni, Matteo. 2017. “Innovation policy in progress. Institutional intermediation in public procurement of innovation: satellite telecommunications in Italy.” R&D Management 47 (4): 583-594.

Langer, Laura. 2001. “The consequences of state economic development strategies on income distribution in the American states, 1976 to 1994.” American Politics Research 29 (4): 392-415.

Lember, Veiko, Tarmo Kalvet, and Rainer Kattel. 2011. “Urban competitiveness and public procurement for innovation.” Urban Studies 48 (7): 1373-1395.

Levac, Danille, Heather Colquhoun, and Kelly O'Brien. 2010. “Scoping studies: advancing the methodology.” Implementation Science 5 (1):69.

Li, Yanchao, and Luke Georghiou. 2016. “Signaling and accrediting new technology: Use of procurement for innovation in China.” Science and Public Policy 43 (3): 338–351.

Lundvall, Bengt-Ake, K. J. Joseph, Cristina Chaminade, and Jan Vang, eds. 2011. Handbook of innovation systems and developing countries: Building domestic capabilities in a global setting. Edward Elgar Publishing. ISBN 1849803420.

Peñate-Valentín, María Concepción, Angeles Pereira, and María del Carmen Sánchez-Carreira. 2018. “Servitization in the public sector: A framework for energy service companies.” In Practices and tools for servitization, edited by Kohtamäki Marco, Tim Baines, Rodrigo Rabetino, and Ali Z. Bigdeli. Palgrave Macmillan, Cham.

Peters, Micah, Christina Godfrey, Khalil Hanan, Patricia McInerney, Deborah Parker, and Cassia Baldini Soares. 2015. “Guidance for conducting systematic scoping reviews.” International Journal of Evidence-based Healthcare 13 (3): 141-146.

Pickernell, David, Adrian Kay, Gary Packham, and Christopher Miller. 2011. “Competing agendas in public procurement: An empirical analysis of opportunities and limits in the UK for SMEs.” Environment and Planning C: Government and Policy 29 (4): 641–658.

Priem, Richard, Sali Li, and Jon Carr. 2012. “Insights and new directions from demand-side approaches to technology innovation, entrepreneurship, and strategic management research.” Journal of Management 38 (1): 346-374.

Puig-Pey, Anna, Yolanda Bolea, Antoni Grau, and Josep Casanovas. 2017. “Public entities driven robotic innovation in urban areas.” Robotics and Autonomous Systems 92:162-172.

Stucki, Tobias, Martin Woerter, Spyros Arvanitis, Michael Peneder, and Christian Rammer M. 2018. “How different policy instruments affect green product innovation: A differentiated perspective.” Energy Policy 114 (3): 245-261.

Wesseling, Joeri H. 2016. “Explaining variance in national electric vehicle policies.” Environmental Innovation and Societal Transitions 21:28-38.

Whitmarsh, Lorraine, and Jonathan Köhler. 2010. “Climate change and cars in the EU: the roles of auto firms, consumers, and policy in responding to global environmental change.” Cambridge Journal of Regions, Economy and Society 3 (3): 427–441.

Zhi, Quian, Honghang Sun, Yanxi Li, Yurui Xu, and Jun Su. 2014. “China's solar photovoltaic policy: An analysis based on policy instruments.” Applied Energy 129 (15): 308-319.

Downloads

Published

2020-01-30