IDEAS home Printed from https://ideas.repec.org/p/hhs/lucirc/2023_012.html
   My bibliography  Save this paper

Capturing the system-level effects of innovation policy: an assessment of publicly funded innovative entrepreneurship in Sweden

Author

Listed:
  • Laatsit, Mart

    (CIRCLE, Lund University)

  • Lindholm-Dahlstrand, Åsa

    (CIRCLE, Lund University)

  • Nilsson, Magnus

    (CIRCLE, Lund University)

Abstract

A new generation of innovation policies has placed renewed attention on understanding the innovation processes taking place on and affecting the system level. On one hand, there is a growing demand for policy instruments addressing the need for system change. On the other hand, there is still a lack of understanding of how innovation policy instruments contribute to a system-level impact. We address this gap by taking a programme perspective and proposing an analytical framework for assessing three types of effects: first-order, second-order, and system-level. Our approach is inspired by the functions of technological innovation system literature (TIS). We apply the analytical framework to the analysis of an innovative entrepreneurship instrument, the Swedish Innovation Agency VINNOVA’s Innovative SME programme. We find that the public support programmes contributed significantly to SMEs’ ability to influence system functions. Based on the findings, we argue that the analysis of innovation policy programmes should move beyond a narrow assessment of direct effects and consider more the second-order and system-level effects.

Suggested Citation

  • Laatsit, Mart & Lindholm-Dahlstrand, Åsa & Nilsson, Magnus, 2023. "Capturing the system-level effects of innovation policy: an assessment of publicly funded innovative entrepreneurship in Sweden," Papers in Innovation Studies 2023/12, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2023_012
    as

    Download full text from publisher

    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/202312_laatsit.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bengt-Åke Lundvall, 1999. "National Business Systems and National Systems of Innovation," International Studies of Management & Organization, Taylor & Francis Journals, vol. 29(2), pages 60-77, June.
    2. Abdullah Gök & Jakob Edler, 2012. "The use of behavioural additionality evaluation in innovation policy making," Research Evaluation, Oxford University Press, vol. 21(4), pages 306-318, September.
    3. Ken Warwick & Alistair Nolan, 2014. "Evaluation of Industrial Policy: Methodological Issues and Policy Lessons," OECD Science, Technology and Industry Policy Papers 16, OECD Publishing.
    4. Magro, Edurne & Wilson, James R., 2013. "Complex innovation policy systems: Towards an evaluation mix," Research Policy, Elsevier, vol. 42(9), pages 1647-1656.
    5. Janssen, Matthijs J., 2019. "What bangs for your buck? Assessing the design and impact of Dutch transformative policy," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 78-94.
    6. Suurs, Roald A.A. & Hekkert, Marko P. & Kieboom, Sander & Smits, Ruud E.H.M., 2010. "Understanding the formative stage of technological innovation system development: The case of natural gas as an automotive fuel," Energy Policy, Elsevier, vol. 38(1), pages 419-431, January.
    7. Stefan Kuhlmann & Arie Rip, 2018. "Next-Generation Innovation Policy and Grand Challenges," Science and Public Policy, Oxford University Press, vol. 45(4), pages 448-454.
    8. Borrás, Susana & Edquist, Charles, 2013. "The choice of innovation policy instruments," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1513-1522.
    9. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    10. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    11. Borrás, Susana & Laatsit, Mart, 2019. "Towards system oriented innovation policy evaluation? Evidence from EU28 member states," Research Policy, Elsevier, vol. 48(1), pages 312-321.
    12. Erik Arnold, 2004. "Evaluating research and innovation policy: a systems world needs systems evaluations," Research Evaluation, Oxford University Press, vol. 13(1), pages 3-17, April.
    13. Markard, Jochen & Truffer, Bernhard, 2008. "Technological innovation systems and the multi-level perspective: Towards an integrated framework," Research Policy, Elsevier, vol. 37(4), pages 596-615, May.
    14. Autio, Erkko & Kanninen, Sami & Gustafsson, Robin, 2008. "First- and second-order additionality and learning outcomes in collaborative R&D programs," Research Policy, Elsevier, vol. 37(1), pages 59-76, February.
    15. Janna Alvedalen & Ron Boschma, 2017. "A critical review of entrepreneurial ecosystems research: towards a future research agenda," European Planning Studies, Taylor & Francis Journals, vol. 25(6), pages 887-903, June.
    16. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    17. Staffan Jacobsson & Anna Bergek, 2004. "Transforming the energy sector: the evolution of technological systems in renewable energy technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 815-849, October.
    18. Hottenrott, Hanna & Lopes-Bento, Cindy & Veugelers, Reinhilde, 2017. "Direct and cross scheme effects in a research and development," Research Policy, Elsevier, vol. 46(6), pages 1118-1132.
    19. Georghiou, Luke & Roessner, David, 2000. "Evaluating technology programs: tools and methods," Research Policy, Elsevier, vol. 29(4-5), pages 657-678, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janssen, Matthijs J., 2019. "What bangs for your buck? Assessing the design and impact of Dutch transformative policy," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 78-94.
    2. Zhigao Liu & Yimei Yin & Weidong Liu & Michael Dunford, 2015. "Visualizing the intellectual structure and evolution of innovation systems research: a bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 103(1), pages 135-158, April.
    3. Bleda, Mercedes & del Río, Pablo, 2013. "The market failure and the systemic failure rationales in technological innovation systems," Research Policy, Elsevier, vol. 42(5), pages 1039-1052.
    4. Haddad, Carolina R. & Bergek, Anna, 2023. "Towards an integrated framework for evaluating transformative innovation policy," Research Policy, Elsevier, vol. 52(2).
    5. Steffen S. Bettin, 2020. "Electricity infrastructure and innovation in the next phase of energy transition—amendments to the technology innovation system framework," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 371-395, November.
    6. Howoldt, David, 2024. "Characterising innovation policy mixes in innovation systems," Research Policy, Elsevier, vol. 53(2).
    7. Matthijs Janssen, 2016. "What bangs for your bucks? Assessing the design and impact of transformative policy," Innovation Studies Utrecht (ISU) working paper series 16-05, Utrecht University, Department of Innovation Studies, revised Dec 2016.
    8. Kebede, Kassahun Y. & Mitsufuji, Toshio, 2017. "Technological innovation system building for diffusion of renewable energy technology: A case of solar PV systems in Ethiopia," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 242-253.
    9. Kern, Florian & Rogge, Karoline S. & Howlett, Michael, 2019. "Policy mixes for sustainability transitions: New approaches and insights through bridging innovation and policy studies," Research Policy, Elsevier, vol. 48(10).
    10. Diercks, Gijs & Larsen, Henrik & Steward, Fred, 2019. "Transformative innovation policy: Addressing variety in an emerging policy paradigm," Research Policy, Elsevier, vol. 48(4), pages 880-894.
    11. Ghazinoory, Sepehr & Nasri, Shohreh & Ameri, Fatemeh & Montazer, Gholam Ali & Shayan, Ali, 2020. "Why do we need ‘Problem-oriented Innovation System (PIS)’ for solving macro-level societal problems?," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    12. Hellsmark, Hans & Frishammar, Johan & Söderholm, Patrik & Ylinenpää, Håkan, 2016. "The role of pilot and demonstration plants in technology development and innovation policy," Research Policy, Elsevier, vol. 45(9), pages 1743-1761.
    13. del Río, Pablo & Peñasco, Cristina & Mir-Artigues, Pere, 2018. "An overview of drivers and barriers to concentrated solar power in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1019-1029.
    14. Lindholm-Dahlstrand, Asa & Andersson, Martin & Carlsson, Bo, 2016. "Entrepreneurial Experimentation: A key function in Entrepreneurial Systems of Innovation," Papers in Innovation Studies 2016/20, Lund University, CIRCLE - Centre for Innovation Research.
    15. Jacobsson, Staffan & Karltorp, Kersti, 2013. "Mechanisms blocking the dynamics of the European offshore wind energy innovation system – Challenges for policy intervention," Energy Policy, Elsevier, vol. 63(C), pages 1182-1195.
    16. Bajmócy, Zoltán & Vas, Zsófia, 2012. "Az innovációs rendszerek 25 éve. Szakirodalmi áttekintés evolúciós közgazdaságtani megközelítésben [25 years of innovation systems. A literature review from the angle of evolutionary economics]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1233-1256.
    17. Ricard Esparza-Masana, 2022. "Towards Smart Specialisation 2.0. Main Challenges When Updating Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 635-655, March.
    18. Purkus, Alexandra & Lüdtke, Jan, 2020. "A systemic evaluation framework for a multi-actor, forest-based bioeconomy governance process: The German Charter for Wood 2.0 as a case study," Forest Policy and Economics, Elsevier, vol. 113(C).
    19. Nikas, A. & Koasidis, K. & Köberle, A.C. & Kourtesi, G. & Doukas, H., 2022. "A comparative study of biodiesel in Brazil and Argentina: An integrated systems of innovation perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    20. Grillitsch, Markus & Hansen, Teis & Madsen, Stine, 2020. "How novel is Transformative Innovation Policy?," Papers in Innovation Studies 2020/8, Lund University, CIRCLE - Centre for Innovation Research.

    More about this item

    Keywords

    innovation policy; Sweden; public funding;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lucirc:2023_012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Torben Schubert (email available below). General contact details of provider: https://edirc.repec.org/data/circlse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.