A Proposal for a ‘National Innovation System Plus Subjective Well-Being’ Approach and an Evolutionary Systemic Normative Theory of Innovation

It is argued that development of a ‘National Innovation System plus Subjective Well-being’ (NIS+SWB) approach would be a natural extension of current research into innovation systems, ‘happiness’ research and attempts to develop a normative theory of innovation that tries to avoid what can be called the long-run fallacy of normative innovation economics, i.e. the axiomatic assumption that innovation and economic growth are always desirable. After reviewing the literature on national innovation systems and recent contributions, from diverse literatures, relevant to the development of a normative theory of innovation, some of the implications of a NIS+SWB approach are explored. In particular, it is argued that the approach requires an evolutionary systemic normative theory, because of the systemic and co-evolving nature of both the NIS and SWB. This has to be clearly distinguished from individualistic (micro-level) welfare theory, although both are best seen as complementary. Confusing societal and micro-level analysis is an example of the ecological fallacy. Further, the choice of SWB measure is highlighted. It is suggested that life satisfaction is the currently preferred SWB measure for a NIS+SWB approach. However, more research into a merger of SWB research and Sen’s capability approach seems called for. Last but not least, some general implications of a NIS+SWB approach for innovation policy are discussed.