Innovation policy at stake:
“the emperor is naked”
Philippe Larédo
Scientific workshop on transforming
innovation policy
Madrid, 25 April 2017
MIoIR
A two step presentation
• The central question:
- we have 50 years of accumulated strata of R&D and
innovation policies
- most evaluations have shown that they are performative
even if there are numerous ‘internal’ questions raised
• But are we sure they are still relevant, that they do not ‘miss
the boat’?
• My argument:
- they apply mostly on ‘manufacturing’ industries and
‘technology led’ innovations
- but the situation differs widely from these 2 combined
dimensions
- and leaves the ‘field of public intervention’ fully open…
Accumulated knowledge on innovation
policies: a simplified review
• An old but quite useful ‘characterisation’ framework proposed
by OECD combining:
• Chabbal 3 circles describing types of RDI activities (research,
applied research, development)
• Piganiol 3 policy macro objectives: supporting science (as a
public good), R&I for Government missions, shaping the firm
innovation space
• Drives to recognise 3 major periods, each with preferred
problems & policy instruments, with a cumulative effect (very
few tools from the previous period disappear)
Fundamental
research
Applied Research
Development
The OECD model
(Chabbal 1970s)
3 Types of R&D activities
& 3 types of situations
ESTABLISHED INDUSTRIES & FIRMS
PUBLIC MISSIONS
/GOODSNEW S&T BASED
INDUSTRIES
Two models (alternative
or complementary):
- universities & research
councils
- Fundamental research
PROs
PUBLIC MISSIONS
/GOODS
FIRMS
NEW S&T BASED
INDUSTRIES
Technical centres
(per industry) Innovation
grants & loans
FIRST GENERATION POLICIES
Mission
oriented
PROS
Public
Procurement
Large programmes
State or agency led
With strong PRO
Key role of
National/
European
champions
PUBLIC MISSIONS
/GOODS
FIRMS
NEW
TECHNOLOGIES
Intermediary structures:
Technology resource centre
(mostly per region)
SECOND GENERATION POLICIES & NATIONAL INNOVATION SYSTEMS
Problem-
solving
Agencies
(e.g. AIDS)
Collaborative
programmes
Role of large
firms
Collaborative
‘characterisation’
Programmes
e.g. environment
Renewed interest in IPR
GRAND
CHALLENGES
FIRMS
START-UP
ECOLOGY
Growing role of public
Development banks
Tax credits
THIRD GENERATION POLICIES
Will for embracing
Programmes –
Still mostly use of
Previous solutions
Demand
based
policies
Multiplication of instruments
Covering the 3 layers
(incubators, science parks,
seed capital, support to
venture capital….)
Capability building
Higher education
and research:
Central role of
universities
A progressive multi-level assemblage
• APART from collective goods (see other presentations)
• A de facto specialisation between regions, states & the EU
- A European framing of a friendly environment (IPR,
standards, frames for demand-based policies..)
- EC critical role for frontier S&T
- National Support to individual firms (tax credits &
development banks) & for science policy at large (as
‘capability building’)
- Regions for existing industries: EC ‘smart specialisation’
Positive evaluations even with multiple
‘internal’ debates
• Even if ‘internal’ debates multiply
- on the overall effectiveness of ‘policy mixes’
- on the balance between direct vs indirect supports (and
about the potential loose-loose situation of tax credits)
- on the balance between supply vs demand oriented tools
• Overall positive evaluations about the impacts of individual
instruments (see MIOIR compendium)
So what is the issue?
Does this accumulated knowledge apply to
the 3 core transformations the economy is
going through?
T1- what about the service economy
T2- What about globalisation
T3- How to consider the shifting role of users
How to cope with the over-
dominating service economy?
• Are the two ways we categorise innovation in services
enough?
- firms that operate in a manufacturing mode (transport,
banks, construction)
- Knowledge intensive business services (KIBS)
• How to consider ‘services to individuals’ (health, tourism,
leisure & culture…)
- should we restrict to their ‘manufacturing like’ bits (e.g.
videogames, new drugs)
- what about ‘hidden innovation’ in hospitals (SPRU)
- what about hotel chains & their analytics?
- what about the role of cultural investments (museums,
events) in tourism?
- etc.
New issues raised by globalisation
• Growing concentration: few firms in most markets, present
everywhere  our competition paradigm cannot cope with
this
• Absolute & no longer comparative advantages  powerful
shifts in manufacturing landscapes (e.g. evolving French
structure or US ‘reindustrialisation discourse)
• Wide transformation of relations between producing firms &
consumers
- the critical importance of brands
- the internet revolution & investments on ‘circulation
processes (away from production)
- new software firms dealing with producer-user interfaces
(big data & personalisation…)
Shifting role of users in driving innovation
• 5 keywords to capture the potentially massive transformation
underway:
- crowd sourcing
- political consumption / responsible innovation
- social innovation & new forms of local collective development
- DIY (fablab, 3D printing…)
- Sharing economy (cars, tools, houses...) questioning the
articulation between consumption & ownership
• Do these movements remain marginal, or do they, together,
drive to a deep reconsideration of innovation dynamics
- not only in the ways innovation take place
- but even more on innovation as a permanent source for
renewed and enlarged comsumption/markets
To conclude
• We have a well elaborated and cumulative policy frame for
supporting innovation
- even if we question it: balance between direct & indirect
supports, between supply & demand tools, building of policy
mixes
• But is it able to anticipate /cope with on-going transformative
changes observed?
- How can it consider new developments in the economy
(services, distribution infrastructures, new user practices)?
- are the different streams of instruments (indirect support to
firms, investment in individual firms, collective orchestration/
accompanying) adapted and with what type of balance?
And a final plea
• One striking phenomenon (when analysing recent reports):
researchers in advisory positions keep focusing on
‘manufacturing’ models
• This my plea
- at the individual level: spend more time in ‘characterising’
situations before advising (and in particular better identify
local on-going transformative processes)
- at the collective level, an urgent need to redefine the
research agenda on firm-based innovation activities

Philippe Larédo-La empresa y las políticas de innovación transformadoras

  • 1.
    Innovation policy atstake: “the emperor is naked” Philippe Larédo Scientific workshop on transforming innovation policy Madrid, 25 April 2017 MIoIR
  • 2.
    A two steppresentation • The central question: - we have 50 years of accumulated strata of R&D and innovation policies - most evaluations have shown that they are performative even if there are numerous ‘internal’ questions raised • But are we sure they are still relevant, that they do not ‘miss the boat’? • My argument: - they apply mostly on ‘manufacturing’ industries and ‘technology led’ innovations - but the situation differs widely from these 2 combined dimensions - and leaves the ‘field of public intervention’ fully open…
  • 3.
    Accumulated knowledge oninnovation policies: a simplified review • An old but quite useful ‘characterisation’ framework proposed by OECD combining: • Chabbal 3 circles describing types of RDI activities (research, applied research, development) • Piganiol 3 policy macro objectives: supporting science (as a public good), R&I for Government missions, shaping the firm innovation space • Drives to recognise 3 major periods, each with preferred problems & policy instruments, with a cumulative effect (very few tools from the previous period disappear)
  • 4.
    Fundamental research Applied Research Development The OECDmodel (Chabbal 1970s) 3 Types of R&D activities & 3 types of situations ESTABLISHED INDUSTRIES & FIRMS PUBLIC MISSIONS /GOODSNEW S&T BASED INDUSTRIES Two models (alternative or complementary): - universities & research councils - Fundamental research PROs
  • 5.
    PUBLIC MISSIONS /GOODS FIRMS NEW S&TBASED INDUSTRIES Technical centres (per industry) Innovation grants & loans FIRST GENERATION POLICIES Mission oriented PROS Public Procurement Large programmes State or agency led With strong PRO Key role of National/ European champions
  • 6.
    PUBLIC MISSIONS /GOODS FIRMS NEW TECHNOLOGIES Intermediary structures: Technologyresource centre (mostly per region) SECOND GENERATION POLICIES & NATIONAL INNOVATION SYSTEMS Problem- solving Agencies (e.g. AIDS) Collaborative programmes Role of large firms Collaborative ‘characterisation’ Programmes e.g. environment Renewed interest in IPR
  • 7.
    GRAND CHALLENGES FIRMS START-UP ECOLOGY Growing role ofpublic Development banks Tax credits THIRD GENERATION POLICIES Will for embracing Programmes – Still mostly use of Previous solutions Demand based policies Multiplication of instruments Covering the 3 layers (incubators, science parks, seed capital, support to venture capital….) Capability building Higher education and research: Central role of universities
  • 8.
    A progressive multi-levelassemblage • APART from collective goods (see other presentations) • A de facto specialisation between regions, states & the EU - A European framing of a friendly environment (IPR, standards, frames for demand-based policies..) - EC critical role for frontier S&T - National Support to individual firms (tax credits & development banks) & for science policy at large (as ‘capability building’) - Regions for existing industries: EC ‘smart specialisation’
  • 9.
    Positive evaluations evenwith multiple ‘internal’ debates • Even if ‘internal’ debates multiply - on the overall effectiveness of ‘policy mixes’ - on the balance between direct vs indirect supports (and about the potential loose-loose situation of tax credits) - on the balance between supply vs demand oriented tools • Overall positive evaluations about the impacts of individual instruments (see MIOIR compendium)
  • 10.
    So what isthe issue? Does this accumulated knowledge apply to the 3 core transformations the economy is going through? T1- what about the service economy T2- What about globalisation T3- How to consider the shifting role of users
  • 11.
    How to copewith the over- dominating service economy? • Are the two ways we categorise innovation in services enough? - firms that operate in a manufacturing mode (transport, banks, construction) - Knowledge intensive business services (KIBS) • How to consider ‘services to individuals’ (health, tourism, leisure & culture…) - should we restrict to their ‘manufacturing like’ bits (e.g. videogames, new drugs) - what about ‘hidden innovation’ in hospitals (SPRU) - what about hotel chains & their analytics? - what about the role of cultural investments (museums, events) in tourism? - etc.
  • 12.
    New issues raisedby globalisation • Growing concentration: few firms in most markets, present everywhere  our competition paradigm cannot cope with this • Absolute & no longer comparative advantages  powerful shifts in manufacturing landscapes (e.g. evolving French structure or US ‘reindustrialisation discourse) • Wide transformation of relations between producing firms & consumers - the critical importance of brands - the internet revolution & investments on ‘circulation processes (away from production) - new software firms dealing with producer-user interfaces (big data & personalisation…)
  • 13.
    Shifting role ofusers in driving innovation • 5 keywords to capture the potentially massive transformation underway: - crowd sourcing - political consumption / responsible innovation - social innovation & new forms of local collective development - DIY (fablab, 3D printing…) - Sharing economy (cars, tools, houses...) questioning the articulation between consumption & ownership • Do these movements remain marginal, or do they, together, drive to a deep reconsideration of innovation dynamics - not only in the ways innovation take place - but even more on innovation as a permanent source for renewed and enlarged comsumption/markets
  • 14.
    To conclude • Wehave a well elaborated and cumulative policy frame for supporting innovation - even if we question it: balance between direct & indirect supports, between supply & demand tools, building of policy mixes • But is it able to anticipate /cope with on-going transformative changes observed? - How can it consider new developments in the economy (services, distribution infrastructures, new user practices)? - are the different streams of instruments (indirect support to firms, investment in individual firms, collective orchestration/ accompanying) adapted and with what type of balance?
  • 15.
    And a finalplea • One striking phenomenon (when analysing recent reports): researchers in advisory positions keep focusing on ‘manufacturing’ models • This my plea - at the individual level: spend more time in ‘characterising’ situations before advising (and in particular better identify local on-going transformative processes) - at the collective level, an urgent need to redefine the research agenda on firm-based innovation activities