Getting the institutions right: Designing the public sector to promote clean innovation

Abstract

This paper discusses the need for a Canadian clean innovation policy agenda to focus on organizational and institutional innovations within the public sector. The paper provides an introduction to innovation policy and how innovation can be directed to promote environmental sustainability. It then discusses the pitfalls that can lead to government failure in attempts to promote technological change. It then lists key institutional design principles to produce effective public-sector organizations capable of fruitfully engaging with the private sector to promote sustainability while avoiding the pitfalls discussed earlier. The article concludes by calling for further case-study research on how good institutional designs are achieved and what institutional designs best fit the Canadian context.