Political aspects of innovation

Abstract

"Political aspects" that enhance, but also undermine, the positive transformational power of public innovation policies are examined. As such, this paper follows Michał Kalecki in his 1943 paper that identifies the "political aspects" which enhance and undermine the positive transformational power of Keynesian full employment policies. Similarly, this paper provides a policy framework that identifies what government and business support as innovation policies. The role of innovation stems from Schumpeter's long-run perspective, but incorporates the more dynamic cyclical short-term and trend perspectives of Kalecki. This paper critiques the strategy of public innovation policy in general and derives policy implications. © 2009 Elsevier B.V. All rights reserved.