{"id":91,"date":"2014-01-13T15:59:17","date_gmt":"2014-01-13T15:59:17","guid":{"rendered":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/?p=91"},"modified":"2014-02-09T22:09:49","modified_gmt":"2014-02-09T22:09:49","slug":"demand-and-supply-driven-innovation-policy","status":"publish","type":"post","link":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/2014\/01\/13\/demand-and-supply-driven-innovation-policy\/","title":{"rendered":"Demand and Supply-Driven Innovation Policy"},"content":{"rendered":"<div>\n<p><strong>A Holistic Approach: Demand and Supply-Driven Innovation\u00a0Policy\u00a0<\/strong><\/p>\n<p><img decoding=\"async\" src=\"\/innovation-futures\/files\/2014\/01\/demand_driven_innovation_policy.jpg\" alt=\"\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Abstract: <\/strong>So far, traditional innovation policy mostly focuses on the development of innovation, the supply side of innovation, so to speak. Researchers from the German Institute of Global and Area Studies identified four main trends concerning global trends in innovation policy: 1) public funded technology programs, 2) innovation intermediaries\u00a0 (bringing together research and industry), 3) enabling producer-user relationships and 4) spending for R&amp;D as share of the GDP.<\/p>\n<p>Recently, in Europe, a political discussion about a stronger emphasis on the demand side of innovation has started. The insight that both demand and supply side factors influence the way innovations emerge and diffuse on the markets becomes more common. Recent examples in China show that a focus on the supply side alone does not lead to the desired sustainable success, if other factors lack.<\/p>\n<p>Demand-driven innovation policy promotes innovativeness and diffusion of innovations by stimulating demand and by creating better conditions for the take-up of innovations. In contrast to supporting the R&amp;D sector, it aims at the institutional design of the innovation system that is decisively responsible for a sustainable success of innovations.<\/p>\n<p>Discussed measures are (partly already implemented): financing and tax incentives, the public sector as lead customer (pioneering activities), public-private partnerships, public foresight and communication of innovation fields to the wider public to increase acceptance of new technologies.<\/p>\n<p>Demand-driven innovation policy especially drives innovations in the field of environmental technology, transportation and health. In Germany government incentives have created a large market for solar panels, and public funded pilot projects for electric cars are about to create kind of a test market with limited risks for the participating companies.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Driver\u00a0<\/strong><\/p>\n<p>Economic \/ Industrial<\/p>\n<p>According to the European Commission, banks lack the technological knowledge to approve loans for eco-innovation and other new fields. Alternative, state-driven funding and support is highly demanded.<\/p>\n<p>&nbsp;<\/p>\n<p>Environmental<\/p>\n<p>The climate change increases the pressure on everybody to find solutions, esp. in the named fields. Often the required solutions are too big for a single actor from the private sector to shoulder them. This frankly calls for governmental support.<\/p>\n<p>&nbsp;<\/p>\n<p>Political<\/p>\n<p>Private innovators often hesitate to invest in new technologies, as they cannot be sure their products will be demanded \/ needed. Here the state can help to boost demand, either by acting as buyer, or facilitating market conditions and acceptance in the public.<\/p>\n<p>Developing countries want to compensate missing private investments or systematically try to build domestic competences in certain areas i.e. by building massive research facilities (see China).<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Obstacle<\/strong><\/p>\n<p>Economic \/ Industrial<\/p>\n<p>Opposition by industries \/ research facilities which are not supported.<\/p>\n<p>If the governmental support is not sustainable, for example if the government remains the only customer, the innovation force of the private economy might be weakened in the long run and money is used inefficient.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Indication<\/strong><\/p>\n<p>Change in current innovation patterns<\/p>\n<p>A stronger focus on the demand side of innovation could lead to a change in the way resources are provided for the development of innovations \u2013 more money for public-private-partnerships foresight, large-scale projects, less for traditional basic research.<\/p>\n<p>Combing demand and supply side driven policy may increase the likelihood of successful innovations.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Source\u00a0<\/strong><\/p>\n<p>Internet<\/p>\n<p><a href=\"http:\/\/www.scribd.com\/doc\/20454781\/Demand-and-user-driven-innovation-policy-framework\">www.scribd.com\/doc\/20454781\/Demand-and-user-driven-innovation-policy-framework<\/a><\/p>\n<p>Studies<\/p>\n<p><a href=\"http:\/\/www.giga-hamburg.de\/dl\/download.php?d=\/content\/publikationen\/pdf\/gf_global_0901.pdf\">www.giga-hamburg.de\/dl\/download.php<\/a><\/p>\n<p>&nbsp;<\/p>\n<div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Holistic Approach: Demand and Supply-Driven Innovation\u00a0Policy\u00a0 &nbsp; Abstract: So far, traditional innovation policy mostly focuses on the development of innovation, the supply side of innovation, so to speak. Researchers from the German Institute of Global and Area Studies identified four main trends concerning global trends in innovation policy: 1) public funded technology programs, 2) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-91","post","type-post","status-publish","format-standard","hentry","category-signals-of-change"],"_links":{"self":[{"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/posts\/91","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/comments?post=91"}],"version-history":[{"count":6,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/posts\/91\/revisions"}],"predecessor-version":[{"id":414,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/posts\/91\/revisions\/414"}],"wp:attachment":[{"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/media?parent=91"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/categories?post=91"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sustainable-everyday-project.net\/innovation-futures\/wp-json\/wp\/v2\/tags?post=91"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}