TP1 Exam Flashcards
Bush. 1945: Government funding for science and technology.
-Scientific progress is essential
-Renewal of scientific talent
-Knowledge can be shared as long as it does not compromise national security
-Government should support research in different fields.
The linear model of innovation (And critiques)
o RESEARCH -> APPLIED RESEARCH -> DEVELOPMENT -> PRODUCTION -> MARKET
Very much a push model, lacking in feedback
No place for users in this model
Science is only one source of ideas for innovation (users)
Stoke, 1997: Fundimental understanding vs Consideration of use
o Its no longer good enough to just invest in basic science (Stokes, 1997)
o Bohr – Pure basic:
o Edison – Applied research: Don’t pursue the core science, go for the commercial viability.
o Pasteur – User inspire basic research: Basic research, but inspired by considerations for its use. Contrasts (Bush, 1945) Manhattan Project, Chip design.
Sources of market failure
o Monopoly: Antitrust laws (Breaking up firms) – Reduces economies of scale increasing consumer costs. Subsidising entry – inefficient. Regulatory capture.
o Asymmetric information: Disclosure laws – costly and ‘Beware of the leopard’. Third party verification – could be biased.
o Externalities/Spillovers: Tax or subsidise, coasean bargaining – hard to measure, enforcement. Tradable permits, permit hoarding.
o Public goods (Non-rival/Non-excludable)
Policy models - Advocacy Coalition Framework:
Decade + for policy change, conceptualised as belief systems. Aggregate actors to advocacy coalitions who policy brokers mediate between. Lobbying resulting in the Kyoto Protocol, and Paris Agreement.
Policy models - Rationalism:
Achieving maximum social gain. Do you have all the info?
Lockdowns vs economic cost for COVID
Policy models - Institutionalism:
Institutions determine, implement, and enforce.
UK Parliament enacting laws on climate change.
Policy models - Punctuated Equilibrium:
Periods of stability followed by periods of rapid change. More about quantity than kinds of policy.
Policy models - Kingdon’s Many Streams:
Problems, Policies, Politics, big change when all 3 intersect. Windows of opportunity. (EU AI Act)
Cairney, 2018: Policy models
MSF highlights short-term policy change when independent streams align, driven by policy entrepreneurs exploiting fleeting opportunities. In contrast, ACF focuses on long-term, belief-driven coalition interactions, while PET combines extended stability with sudden, dramatic shifts influenced by institutional dynamics and public attention.
Schwab, 2016: Industrial revolutions
o 1784 Steam
o 1870 Electricity
o 1969 IT
o Now Cyber-physical systems
o “Velocity, scope, impact” (Schwab, 2016)
o characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
Hippe & Fourquet, 2018: Technology and knowledge economy trends
Advanced economies like the U.S., EU, and East Asia have led in R&D intensity and digital transformation, while emerging economies have increasingly adopted technology, often leapfrogging older systems (e.g., mobile banking in Africa).
Historical role of education and energy transitions in driving these changes, highlighting how earlier investments in human capital and technological adoption have set the stage for modern growth patterns.
Grubler, 2012: Energy transitions
o Successful technology transitions come after a long experimental phase (Decades)
o Energy transitions driven by end use of energy (Steam power drove the need for coal, engines for oil, and lighting/computing for electricity) (Grubler, 2012)
Hodgson, 2006 - Definition of institutions
Systems of established and prevalent social rules that structure social interactions
Rodrik, 1999: Optimal institutional arrangements
o Well established, property rights, rule of law, Quality trumps all
o Perception of rules vs actual rules (Russia vs China, China prefereable) Safety (Roderik, 2004)
o Property rights
o Regulatory institutions
o Macroeconomic stablisation institutions
o Social insurance institutions
o Conflict management institutions
o Need to accept institutional diversity
Mode 1 and Mode 2 knowledge generation
o Mode 1 – General, Mode 2 – towards application
Tripple Helix model of innovation (Nexus and how they interact)
o Triple Helix: Industry, Government, University
With academia providing research and innovation, industry translating knowledge into marketable products and services, and government shaping policies, funding, and infrastructure to facilitate collaboration and drive economic growth.
Closed innovation model vs Open innovation model
Closed Innovation: Innovation occurs within a company, relying on proprietary knowledge and limited external input.
Open Innovation: Leverages external collaborations to integrate outside ideas with internal R&D for shared innovation.
Langlois, 2018: Competition policy
- Tech firms are hard to address with competition policy due to growth rate, size, and non-traditional market impacts.
- Modern debates call for balancing consumer welfare with broader societal concerns, including decentralization and fair competition
Stiglerian rent-seeking
Producers fight for (policies):
Direct money subsadies, constraints/subsadies/substitutes/compliments
Price fixing
Control entry
Factors for policy analysis
o Effectiveness – Does it address the issue?
o Political feasasbility – Consistency with gov priorities, public perception
o Administrative feasibility- Legal, trade, juristictions
o Efficiency – Environments and Economic cost-benefit
o Equity – Disproportionate impacts of groups
Policy design process
- Problem identification
- Agenda setting
- Policy formulation
- Policy Legitimation
- Policy implementation
- Policy evaluation
Policy instruments (5X categories, with examples)
- Information and education: Advertising, awareness programmes.
- Laws: Regulations
- Capacity building: Employment skills programme, Research
- Economic instruments: Loans, Taxes and fees, Public expenditure
- Organisational structures: Public investment, Agreements and Partnerships.
Types of planning research (And pros/cons)
o Horizon scanning: 10-15 years in the future
o Foresight reports: 20+ years
o Scenario planning (As expected)
o Science believes this is picking winners
o Private industry rarely cares.
Panglossian Principle Definition
This occurs when stakeholders display optimism even in the face of worrying evidence, which over time can become the default position. (Baldwin, 2012)
Precautionary principle
If there is a potential harm associated with a specific innovation or invention is great or irreversible, even if the probability is low, the invention or innovation ought not to be diffused unless proven to be safe (Butenko & Larouche).
Three central pillars of Institutionalism
a) Regulative (legally sanctioned)
b) Normative (morally governed)
c) Cognitive (recognizable taken for granted behaviours)
(Scott, 2014)
This section will provide and explore three types of innovation systems or level
(1) National, (2) Regional, and (3) Sectoral.
