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Innovation Policy as Industrial Policy: Some Lessons from Hamburg's Regional Innovation System

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  • Tim Vorley
  • Jen Nelles

Abstract

The widespread transformation of the economic base has seen the decline of traditional manufacturing economies and the rise of knowledge-based economies. Consequently, conventional manufacturing-oriented industrial policy has become ‘future orientated’ towards the challenges of the knowledge-based economies, and increasingly replaced by innovation policy. Drawing upon original empirical research on Hamburg's regional innovation system, this paper unravels how innovation policy has increasingly sought to embed and realise the value of universities and publicly-funded research institutions by positioning them at the core of the regional innovation system. The outcome is that innovation policy plays an important catalytic role in promoting technology transfer and knowledge exchange. However, the success of this new agenda is shown to depend on its acceptance and adaptation by universities and publicly-funded research institutes. This study of Hamburg reveals how, when effectively achieved, innovation policy as a form of future-orientated industrial policy can restructure local economies as centres of high-technology research and development with strong science-industry links.

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  • Tim Vorley & Jen Nelles, 2010. "Innovation Policy as Industrial Policy: Some Lessons from Hamburg's Regional Innovation System," Local Economy, London South Bank University, vol. 25(8), pages 631-649, December.
    • Handle: RePEc:sae:loceco:v:25:y:2010:i:8:p:631-649
    DOI: 10.1080/02690942.2010.533422
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