Demand-side innovation policies and instruments

Abstract

While there is no single definition of a demand-side innovation policy, it is often understood as a set of public measures to increase demand for innovations, to improve conditions for the uptake of innovations or to improve the articulation of demand in order to spur innovations and allow their diffusion (Edler, 2007). It often aims at addressing barriers affecting market introduction and diffusion of innovations. For example, demand-side innova- tion policies respond to situations in which markets for innovative products may be insufficiently developed (e.g. certain renewable energy technologies), but there is a technology or product with high potential benefit and/or public sources of demand afford opportunities to stimulate innovation to meet societal needs. This can also imply meeting these needs by creating an articu- lated market demand (Figure 1.3). Some barriers affecting the market intro- duction and diffusion of innovations on the demand side include (Edler, 2007):This being said, responses from member countries to the OECD Science, Technology and Industry Outlook 2010 policy questionnaire (Table 1.2) indicate that demand-side innovation policies are not among the highest priorities of recently adopted national science, technology and innovation strategies.

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