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Innovation Policy, Entrepreneurship, and Development: A Finnish View

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  • Toivanen, Otto

    (University of Helsinki, Helsinki Center of Economic Research)

Abstract

This article first reviews the economic rationales for innovation policy. It then describes the Finnish innovation policy and policy making environment. The Finnish policy is evaluated from the point of view of fostering entrepreneurship. R&D subsidies, the main tool of Finnish innovation policy, may not be a very effective way of fostering entrepreneurship, compared to R&D tax credits of the type used in the Netherlands and Norway. The main reason for this is that the latter provide support in a more transparent way. The article ends with a discussion of what lessons the Finnish innovation policy offers to developing countries.

Suggested Citation

  • Toivanen, Otto, 2009. "Innovation Policy, Entrepreneurship, and Development: A Finnish View," MERIT Working Papers 2009-050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2009050
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    File URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-050.pdf
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    References listed on IDEAS

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    Cited by:

    1. Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro & Stein, Ernesto, 2020. "Public support to R&D, productivity, and spillover effects: Firm-level evidence from Chile," World Development, Elsevier, vol. 130(C).
    2. repec:idb:brikps:460 is not listed on IDEAS
    3. Tahir Mahmood & Eatzaz Ahmad, 2014. "Output growth and investment dynamics in Finland: a panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 777-801, November.

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    More about this item

    Keywords

    innovation policy; R&D subsidies; R&D tax credit; developing countries; interim efficiency; market failure;
    All these keywords.

    JEL classification:

    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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