The following paper closely explores why policies for innovation are needed. In particular, the article by Edler and Fagerberg (2017) which is called “Innovation policy: What, why, and how” explores the topic in detail. The authors explain that in the recent decade policy-makers have become widely aware of the various ways in which innovation influences economic performance. Generally speaking, innovation policy is a relatively new term “on policy-makers’ agendas” (Edler & Fagerberg, 2017). This term became popular starting from the end of 20th century. Here, one would certainly ask why this concept has gained such importance and popularity with time. Presumably, because today humanity has become more aware of the ways in which its innovations impact the world’s future (e.g., environmental effects).
Edler and Fagerberg (2017) stress that innovation is something that has existed as long as humankind itself. From this perspective, policies that impact the innovation process have existed much longer than we can imagine. It is important to define the concepts of innovation and innovation policy. The word innovation refers to the various solutions that are generated in response to “problems, challenges, or opportunities that arise in the social and/or economic environment” (Edler & Fagerberg, 2017). Innovation policies, in turn, help to regulate these processes; they can be divided into three subcategories: mission-oriented policies, invention-oriented policies, system-oriented policies (Edler & Fagerberg, 2017). What is also important, previously, innovation policies may have been implemented as part of the industrial, science, technology, and research policies (Edler & Fagerberg, 2017).
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Summing up, innovation policy is important for regulating the impact that various innovations have on the environment. Petrol-driven cars and vehicles are an excellent example of the importance of innovation policies. Given that some innovations have a harmful effect on the surrounding environment, it is crucial to regulate the consequences that these innovations have for humanity. This is exactly what innovation policy does: it keeps in check the impact that innovations have on the environment and helps to set the boundaries for each given type of innovation.
- Edler, J., & Fagerberg, J. (2017). Innovation policy: What, why, and how. Oxford Review of Economic Policy, 33(1), 2-23. Retrieved from https://academic.oup.com/oxrep/article/33/1/2/2972712
