Linking Innovation and Entrepreneurship Policy

• Globalization and the shift towards knowledge as the source of competitiveness have rendered traditional policy instruments less effective (Gilbert et al., 2004). Traditional economic/ industrial policies can no longer guarantee high growth and employment, certainly not for all regions and locations. Instead, both innovation and entrepreneurship policy have caught the attention of policymakers at different governmental levels, e.g. local, regional, national and supranational. Both are considered vital for economic growth and industrial renewal and rank high on government policy agendas. Also their combination, that is, innovative entrepreneurship, is a phenomenon that has become increasingly important, especially in the last decade.There are many examples of highly successful innovations stemming from small enterprises, which have revolutionized entire industries. Start-up companies, young entrepreneurs, university spin-offs, and small highly innovative firms, more often than not produce the major technological breakthroughs and innovations, leaving behind the R&D efforts and innovation strategies of large global corporations (European Commission, forthcoming). It has been argued that entrepreneurship takes on new importance in a knowledge economy because it serves as a key mechanism by which knowledge created in one organization can become commercialized in another (new) enterprise (Lindholm 1994, Lindholm Dahlstrand 1997, Audretsch 2004). New and small firms also serve as important vehicles for knowledge spill- overs when their ideas, competencies, products, strategies, innovations and technologies are acquired, accessed and commercialized by larger enterprises (Lindholm 1994, European Commission, forthcoming). Audretsch (2004) argues that small firms as the engine of innovative activity reflects changes in technology, globalization and other factors that have fundamentally altered the importance and process of innovation and technological change. SMEs and entrepreneurship continue to be a key source of dynamism, innovation and flexibility in advanced industrialized countries, as well as in emerging and developing economies (European Commission, forthcoming).Even so, the two areas of innovation policy and entrepreneurship policy, both relatively recent as distinct policy areas, are seldom integrated and the concept of “innovative entrepreneurship policy” has not yet fully emerged. For innovative entrepreneurship to be able to fully contribute to economic growth and development, its importance will need to be further acknowledged in innovation as well as entrepreneurship policies. This paper attempts to make a bridge between and integrate innovation and entrepreneurship policy. Since this task is not easily accomplished, the concept of an Innovative entrepreneurship policy will also be introduced in the discussion. We will start, in section 2, with an overview of innovation and entrepreneurship policies as derivatives of other policy areas, hinting at why it might be problematic to integrate an innovative entrepreneurship policy into existing policy areas. Insection 3, we will discuss innovative entrepreneurship, and innovative entrepreneurial firms, leading to some suggestions regarding the emergence of an Innovative entrepreneurship policy. In section 4, the paper will end with some conclusions and implications.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Samhällsbyggnadsteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Civil Engineering (hsv//eng)

NATURVETENSKAP  -- Biologi (hsv//swe)

NATURAL SCIENCES  -- Biological Sciences (hsv//eng)

Nyckelord

SOCIAL SCIENCES

SAMHÄLLSVETENSKAP

Publikations- och innehållstyp

vet (ämneskategori)

rap (ämneskategori)