Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109080
Authors: 
Braunerhjelm, Pontus
Henrekson, Magnus
Year of Publication: 
2015
Series/Report no.: 
IFN Working Paper 1054
Abstract: 
This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity.
Subjects: 
Entrepreneurship
Innovation
Institutions
Innovation policy
R&D
Technology transfer
University-industry relations
JEL: 
J24
O31
O32
O57
Document Type: 
Working Paper

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