Countries around the world are seeking to achieve economic growth that is smart (innovation-led), inclusive, and sustainable. Such a goal requires a rethinking of the role of government and public policy in the economy. In particular, it requires a new justification of government intervention that goes beyond the usual one of simply fixing market failures. In this context, innovation policy is about identifying and articulating new missions that can galvanize production, distribution, and consumption patterns across sectors. Mission-oriented policies can be defined as systemic public policies that draw on frontier knowledge to attain specific goals or ‘big science deployed to meet big problems’.Tackling innovation missions – whether traveling to the moon or battling climate change – requires investments by both private and public actors. The role of the public sector will be particularly important in the early, capital-intensive high-risk areas that the private sector tends to shy away from. But more generally, there is a catalytic role for Government in creating and shaping markets through dynamic public private partnerships.
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