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www.wiseguys.ltd.uk
Innovation and Environmental Policies for Sustainable Development
Ken Guy Wise Guys Ltd. Six Countries Programme Conference Brussels February 28 - March 1, 2002
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Introduction
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Introduction
Key issues concerning innovation policy, environmental policy and sustainable development
www.wiseguys.ltd.uk
Introduction
Key issues concerning innovation policy, environmental policy and sustainable development
What can innovation policy do for sustainable development?
www.wiseguys.ltd.uk
Introduction
Key issues concerning innovation policy, environmental policy and sustainable development
What can innovation policy do for sustainable development?
What can environmental policy do for innovation?
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Policy Spheres
Industrial PolicyEnvironmental Policy
Sustainable Development Policy
Innovation Policy
Innovation Policy for Sustainable Development
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Definitions
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Definitions
The aim of industrial policy is to promote economic ‘well-being’
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Definitions
The aim of industrial policy is to promote economic ‘well-being’
The aim of environmental policy is to promote environmental ‘well-being’
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Definitions
The aim of industrial policy is to promote economic ‘well-being’
The aim of environmental policy is to promote environmental ‘well-being’
The aim of sustainable development is to maximise environmental productivity and efficiency within economic production processes
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Definitions
The aim of industrial policy is to promote economic ‘well-being’
The aim of environmental policy is to promote environmental ‘well-being’
The aim of sustainable development is to maximise environmental productivity and efficiency within economic production processes
The aim of innovation policy is to encourage changes in the amount, rate and direction of innovation - but only if externalities apply
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Innovation Policy
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Innovation Policy
From additionality and competitiveness to broader socio-economic goals
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Innovation Policy
From additionality and competitiveness to broader socio-economic goals
But has innovation policy worked?
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Innovation Policy
From additionality and competitiveness to broader socio-economic goals
But has innovation policy worked? ‘Yes’ at one level, ‘don’t know’ at another
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Innovation Policy
From additionality and competitiveness to broader socio-economic goals
But has innovation policy worked? ‘Yes’ at one level, ‘don’t know’ at another But our increased understanding of how
innovation systems work provides us with a few a policy tips
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Policy Tips
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Policy Tips
Policy intervention should target the weakest links
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Policy Tips
Policy intervention should target the weakest links Individual policy instruments are unlikely to have
a dramatic impact on system performance
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Policy Tips
Policy intervention should target the weakest links Individual policy instruments are unlikely to have
a dramatic impact on system performance Hence the need for a broad policy mix
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Policy Tips
Policy intervention should target the weakest links Individual policy instruments are unlikely to have
a dramatic impact on system performance Hence the need for a broad policy mix And a system of ‘strategic intelligence’ to help
formulate the mix
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Publ ic Sector Pri vate Sector
Knowle dgeUsers
Universities
S&T Training andEducation
Intermediate and EndConsumers
Market for Goods andServices
Knowle dgeCreators
Universities
Basic ScientificResearch
Firms
Applied R&D andProduct/Process
Development
A Simple Innovation System
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More Tips
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More Tips
All parts need to interact well if the system is to function smoothly
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More Tips
All parts need to interact well if the system is to function smoothly
Stimulating ‘knowledge creation’ in the private sector is vital but difficult
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More Tips
All parts need to interact well if the system is to function smoothly
Stimulating ‘knowledge creation’ in the private sector is vital but difficult
S&T education and training is needed to improve social capital and absorptive capacity
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More Tips
All parts need to interact well if the system is to function smoothly
Stimulating ‘knowledge creation’ in the private sector is vital but difficult
S&T education and training is needed to improve social capital and absorptive capacity
Linking or ‘bridging’ strategies have become increasingly important
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A Simple Policy Classification Scheme
Public Sector Private Sector
Knowledge Users
Knowledge
Creators
Reinforcement Policies
Bridging Policies
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Summary of Simple Tips
Base policy prescriptions on strategic analysis of weak nodes in innovation systems
Tackle these weaknesses via broad policy mixes Include measures which strengthen human
resources Include bridging measures aimed at improving
knowledge and information flows Experiment, evaluate and feed back ‘strategic
intelligence’
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Environmental Policy
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Environmental Policy
Focus on the interaction with technology development, innovation and economic well-being
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Environmental Policy
Focus on the interaction with technology development, innovation and economic well-being
Evidence that regulatory change can stimulate relevant technological change - though change is often incremental and slow
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Environmental Policy
Focus on the interaction with technology development, innovation and economic well-being
Evidence that regulatory change can stimulate relevant technological change - though change is often incremental and slow
Many traditional instruments also successful, e.g. R&D programmes, though under-critical and too short-term
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Environmental Policy
Focus on the interaction with technology development, innovation and economic well-being
Evidence that regulatory change can stimulate relevant technological change - though change is often incremental and slow
Many traditional instruments also successful, e.g. R&D programmes, though under-critical and too short-term
But high barriers to innovation in many environment-related areas
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What Can Innovation Policy Do for Sustainable Development?
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What Can Innovation Policy Do for Sustainable Development?
Apply a broad policy mix
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What Can Innovation Policy Do for Sustainable Development?
Apply a broad policy mix UK study recommended a mix which included:
Target setting Financial support
Support for environmental R&D Support for the training of researchers Prizes for innovations which reach environmental objectives Tax incentives for environment-friendly innovations A National Environment facility to manage and channel
environmental innovation Political and corporate leadership and clear statements of intent
www.wiseguys.ltd.uk
What Can Innovation Policy Do for Sustainable Development?
Apply a broad policy mix UK study recommended a mix which included:
Target setting Financial support
Support for environmental R&D Support for the training of researchers Prizes for innovations which reach environmental objectives Tax incentives for environment-friendly innovations A National Environment facility to manage and channel
environmental innovation Political and corporate leadership and clear statements of intent
Combat uncertainty and ignorance about ‘correct’ policy prescriptions with experimentation and evaluation
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What Can Environmental Policy Do for Innovation?
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What Can Environmental Policy Do for Innovation?
Much current innovation policy is geared to improving the quality of stocks and flows within innovation systems
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What Can Environmental Policy Do for Innovation?
Much current innovation policy is geared to improving the quality of stocks and flows within innovation systems
But there is still scope for quantity measures, especially in terms of stimulating R&D expenditure in the private sector
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What Can Environmental Policy Do for Innovation?
Much current innovation policy is geared to improving the quality of stocks and flows within innovation systems
But there is still scope for quantity measures, especially in terms of stimulating R&D expenditure in the private sector
Combining regulatory measures with traditional innovation policy instruments could overcome inertia in areas where environmental and profit motives will eventually coincide