By Bart Nooteboom, Erik Stam
In economics, company, and govt coverage, innovation coverage calls for the construction of latest ways to a complete variety of actions. This edited quantity engagingly explores the jobs of people and businesses keen on the construction and alertness of techniques. protecting themes as diversified because the macro-economic significance of innovation, theories of information and studying, entrepreneurship, schooling and study, organizational innovation, networks, and neighborhood innovation structures, Micro-Foundations for Innovation coverage offers severe insights into the advance of innovation policy.
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Additional info for Micro-Foundations for Innovation Policy
An important argument may then be that this helps to attract the best talent, and contributes to what we will later (in chapter 3) call a ‘knowledge ecology’. On the other hand, it is generally not a good idea to concentrate all efforts in a given field or specialisation in a single location. It may be an excellent idea to set up an elite institute for finance in Amsterdam, but not to concentrate all finance departments at a single university. Discrepancies and agreement Between mainstream economics and the Hayekian/evolutionary view there are not only deep-level discrepancies but also surface-level agreements.
Innovation requires not only science, technology, and entrepreneurship, but also finance, education, training, and a variety of institutions concerning property rights, standards, competition, and disclosure. Next to these supply factors, advanced users are also of the utmost importance. Organisation, within and between organisations, conditioned by institutions, plays a central role. Innovation is conditioned by institutions but also causes institutional change. For recent summaries of the system view, see Borras (2003) and Chaminade and Edquist (2006).
This approach takes the radical uncertainty of innovation seriously, which pulls the rug out from under rational choice analysis and analysis in terms of equilibria. The efficient operation of markets is limited by the uncertainty of conditions and outcomes of innovation, limited insights in demand and supply, transaction costs, and the endogenous change of preferences. 32 Transaction costs are costs of contact (search, evaluation, distribution), contract (negotiation, agreements, contracts) and control (monitoring, haggling, litigation).