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Institutional context and innovation

In: The Elgar Companion to Innovation and Knowledge Creation

Author

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  • Johannes Glückler
  • Harald Bathelt

Abstract

This chapter explores the interrelations between institutions, defined as stabilized interaction patterns, and innovation, since successful innovation rests on the design of institutional contexts and since inconsistent institutional contexts constrain or even impede successful innovation. Such situations require processes of adjusting innovations to the institutional context (robust design), circumventing resistant institutional contexts (peripheral dominance), or creating new institutional contexts that fit the innovation process (institutional entrepreneurship). The chapter criticizes studies that focus on formal legislation and regulation as indicators of national institutional variety, while neglecting institutional practices and how these also differ at the sub-national level. From a relational perspective, supportive innovation policies need to respond to geographically and temporally varying institutional contexts even within a single legal and regulatory regime. It is argued that policy needs to understand the interrelationships between institutional practices and innovation, rather than viewing rules and regulations as determinants of innovation outcomes.

Suggested Citation

  • Johannes Glückler & Harald Bathelt, 2017. "Institutional context and innovation," Chapters, in: Harald Bathelt & Patrick Cohendet & Sebastian Henn & Laurent Simon (ed.), The Elgar Companion to Innovation and Knowledge Creation, chapter 8, pages 121-137, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:15485_8
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    Citations

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    Cited by:

    1. Maximilian Benner, 2021. "System-level agency and its many shades: How to shape the system for path development?," PEGIS geo-disc-2021_10, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    2. Haddad, Christian & Benner, Maximilian, 2021. "Situating innovation policy in Mediterranean Arab countries: A research agenda for context sensitivity," Research Policy, Elsevier, vol. 50(7).
    3. Benner, Maximilian, 2019. "From overtourism to sustainability: A research agenda for qualitative tourism development in the Adriatic," MPRA Paper 92213, University Library of Munich, Germany.
    4. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.

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