Public Procurement for Innovation (PPI) – a Pilot Study

Public organizations may place an order for something (normally a product or a system) that does not exist. This “something” has to be developed by the supplier before it can be delivered. In other words, R&D and/or innovation are needed before delivery can take place. Until about 10 years ago this phenomenon was called “public technology procurement” Edquist et al 2000). This vocabulary of the 1990s and earlier has changed; the concept of “technology” has been replaced by the concept of “innovation”, reflecting a widening of the content of the notion. The phenomenon is a matter of using public demand (or similar) to trigger innovation. We will use the term “public procurement for innovation (PPI)” to denote this phenomenon. Further definitions are presented in section 2.4.Innovation Systems; innovation policy

Concluding Chapter: Globalisation and Innovation Policy

The concluding chapter of the “Small Country Innovation Systems” book develops a comparative analysis that deals with only a very few of the many issues addressed empirically by the ten country case studies. The concluding chapter focuses to some extent on issues related to globalization, but devotes most of its attention to innovation policy. The chapter is intended as a contribution to the comparative analysis of NSIs, conceived in the spirit of ‘appreciative theorizing’.Globalization; Innovation Policy; comparative analysis

From theory to practice: the use of systems of innovation approach in innovation policy

The main objective of this chapter is to discuss the implications of the adoption of the Systems of Innovation (SI) Approach in innovation policymaking. One of the main criticisms of the SI approach is the difficulty in translating it into real policymaking. This paper proposes a way of dealing with this complex problem. By breaking down the operation of the SI into ‘activities,’ the role of the government and the interplay between private and public actors can be discussed, and specific recommendations on how and when public actors should intervene can be made. The authors propose ten activities that capture the operation of an innovation system. The role of the public sector in each activity is then discussed, and a new research agenda is proposed.innovation systems; innovation policy

Outputs of innovation systems: a European perspective

This paper focuses upon the performance of innovation systems from an output perspective. On it, we try to characterize some European countries according to seven innovation output indicators in the manufacturing and service sectors. The data are gathered from the Community Innovation Surveys between 1996 and 2006. Innovation performance measurement is considered as increasingly interesting by several scholars during last years. It is also important as basis for the design and implementation of innovation policies as the comparison among countries allows policy failures to be detected. The approach followed in this paper could also provide insights when applied to developing countries, which are already concerned with the collection of science and technology indicatorsinnovation systems; output indicators; community innovation survey; manufacturing sector; service sector

The paradox of high R&D input and low innovation output: Sweden

This chapter takes its point of departure in the so-called Swedish paradox, according to which the Swedish NSI is plagued by low pay-off in relation to very high investments in R&D and innovation efforts. Using new data, we show that this paradox is still in operation, i.e. the productivity or efficiency of the Swedish NSI remains low. We also specify the paradox in several respects. By focussing upon nine activities in the NSI, we attempt to explain why and how the paradox operates. The paradox is also related to the moderate growth of labour productivity in Sweden. Further, we show that the paradox is linked to globalization: internationalization of production by Swedish firms has proceeded further than the internationalization of R&D. On the basis of this analysis, we identify strengths and weaknesses of the Swedish NSI – many of which are related to the Swedish paradox. We take account of the history of innovation policy in Sweden and – on the basis of the analysis as a whole -- we identify future policy initiatives that might help to mitigate the Swedish paradox.Innovation; innovation system; Swedish national system of innovation; Swedish paradox

A Systemic Approach to Innovation Policy

The main question that guides this paper is how governments are focusing (and must focus) on competence building (education and training) when designing and implementing innovation policies. With this approach, the paper aims at filling the gap between the existing literature on competences on the one hand, and the real world of innovation policy-making on the other, typically not speaking to each other. With this purpose in mind, this paper discusses the role of competences and competence-building in the innovation process from a perspective of innovation systems; it examines how governments and public agencies in different countries and different times have actually approached the issue of building, maintaining and using competences in their innovation systems; it examines what are the critical and most important issues at stake from the point of view of innovation policy, looking particularly at the unresolved tensions and systemic unbalances related to competences in the system; and last but not least, it elaborates a set of overall criteria for the selection and design of relevant policy instruments addressing those tensions and unbalances

Sustainable Entrepreneurship in the Dutch Construction Industry

This article discusses the strategies that sustainable entrepreneurs use to interact with their environment in the Dutch construction industry. The Dutch construction industry is under great pressure to move towards sustainability, and entrepreneurs are believed to be able to play a large role in this transition by introducing new products and new business practices. But how can entrepreneurs prosper in an environment that is not geared up towards such a change? And which strategies do they use to bend conditions in their favor? In this article we make use of the Market and System Failure Framework to analyze the pressures that entrepreneurs are confronted with when introducing sustainable innovations. We recognize that these pressures can be seen as bottlenecks, but that market and system failures can also create entrepreneurial opportunities. We interviewed 16 entrepreneurs in the Dutch construction industry to determine the influences they experienced from their environment and the strategies they use to deal with these. We conclude that we can distinguish between system building and following entrepreneurs, where the former aims to build a new system to challenge the old one, whereas the latter rather makes use of existing structures to build a business. We find that both strategies can be successful and that overall, the entrepreneurs confirm the belief that sustainability on people, planet and transparency aspects, can contribute very well to the long term profitability of the businesses the entrepreneurs are running. These in-depth insights into the influences from the context on the one hand, and the entrepreneurs’ strategic reactions on the other hand, contribute to our understanding of the interactions between entrepreneurs and the system context. This can help us to more effectively stimulate and support innovating entrepreneurs to contribute to the transition towards sustainability