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The impact of policy measures to stimulate private demand for innovation

In: Handbook of Innovation Policy Impact

Author

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  • Jakob Edler

Abstract

This chapter reviews policy instruments that are primarily geared towards supporting private demand for innovation. It starts by introducing the logic of demand-side innovation policy. It defines demand-side innovation policy as all public action to induce innovation and/or speed up the diffusion of innovation through increasing the demand for innovation, defining new functional requirements for products and services and/or improving user involvement in innovation production (user-driven innovation). A typology of demand-side instruments is suggested. The core of the chapter is the discussion of the effects of the main demand-side instruments. The chapter also highlights evidence and intelligence gaps in the literature. It finally demonstrates that innovation policy has still to learn from other policy domains with regard to the design and effects of demand-side measures, and, conversely, domain policies have to improve their appreciation of the potential of demand-side measures to support innovation.

Suggested Citation

  • Jakob Edler, 2016. "The impact of policy measures to stimulate private demand for innovation," Chapters, in: Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), Handbook of Innovation Policy Impact, chapter 10, pages 318-354, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16121_10
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    Citations

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    Cited by:

    1. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Rossi, Maria Alessandra, 2024. "EU technology-specific industrial policy. The case of 5G and 6G," Telecommunications Policy, Elsevier, vol. 48(2).
    3. Knut Blind & Jakob Pohlisch & Anne Rainville, 2020. "Innovation and standardization as drivers of companies’ success in public procurement: an empirical analysis," The Journal of Technology Transfer, Springer, vol. 45(3), pages 664-693, June.
    4. Jakob Edler, 2023. "Demand, public procurement and transformation," MIOIR Working Paper Series 2023-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.

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