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Learning from Overrated Mission-Oriented Innovation Policies: Seven Takeaways

In: Moonshots and the New Industrial Policy

Author

Listed:
  • Magnus Henrekson

    (Research Institute of Industrial Economics (IFN))

  • Christian Sandström

    (Jönköping International Business School
    The Ratio Institute)

  • Mikael Stenkula

    (Research Institute of Industrial Economics (IFN))

Abstract

This chapter integrates findings from several different case studies on mission-oriented innovation policies (MOIPs) and makes use of the existing literature to briefly describe three other missions: The War on Cancer, homeownership in the United States, and the Swedish Million Program. Together with the analyses in the other chapters of this volume, seven takeaways regarding mission-oriented innovation policies are developed and described: (1) wicked problems cannot be solved through missions, (2) politicians and government agencies are not exempt from self-interest, (3) MOIPs are subject to rent seeking and mission capture, (4) policymakers lack information to design MOIPs efficiently, (5) MOIPs distort competition, (6) government support programs distort incentives and result in moral hazard, and (7) MOIPs ignore opportunity costs. These seven takeaways are illustrated using the cases described in this chapter and elsewhere in this volume.

Suggested Citation

  • Magnus Henrekson & Christian Sandström & Mikael Stenkula, 2024. "Learning from Overrated Mission-Oriented Innovation Policies: Seven Takeaways," International Studies in Entrepreneurship, in: Magnus Henrekson & Christian Sandström & Mikael Stenkula (ed.), Moonshots and the New Industrial Policy, pages 235-255, Springer.
    • Handle: RePEc:spr:inschp:978-3-031-49196-2_13
    DOI: 10.1007/978-3-031-49196-2_13
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    References listed on IDEAS

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    1. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
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    Cited by:

    1. Schou, Peter Kalum, 2024. "Unpacking the myth of the entrepreneurial state," Journal of Business Venturing Insights, Elsevier, vol. 21(C).

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    More about this item

    Keywords

    Mission-oriented; Innovation policy; Rent seeking; Failure; Public choice;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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