Download - Governance and learning in innovation policy - lessons from MONIT Svend Otto Remøe Prokontra AS OECD
Governance and learning in innovation policy - lessons
from MONITSvend Otto Remøe
Prokontra AS
OECD
Contents
• MONIT: Background and issues
• Governance and policy learning
• Obstacles and challenges in policy learning
Background
• The innovation driven economy and NIS• The OECD growth study illustrated the
importance of innovation for growth• Is there a new role of government?• From general NIS systems perspectives to
sectoral case studies and integration of policy as endogenous in NIS
• A greater need to develop a 3rd generation innovation policy
Objectives of MONIT
• How national traditions and contexts generate and sustain policy orientations and mixes.
• How different policies interact to create a basis for developing horizontal policy.
• How to co-ordinate policies across institutional boundaries through inter-ministerial. collaboration and institutional mechanisms for policy learning within and between agencies and ministries.
• The key national capabilities for effective processes of policy formulation, co-ordination and implementation
• Exploratory study, ready-made generic solutions not to be expected
Key concepts
• From government to governance: A need to learn more about policy processes and institutions
• Co-ordination and coherence• The policy cycle: Agenda setting and
formulation, implementation and learning• Horizontalization: Spanning ministerial
boundaries• Policy learning: managing the production,
diffusion and use of policy relevant knowledge
Two views on policy making
• The exchange perspective: Actors with interests and preferences ”negotiate” and outcomes are easily achieved without frictions (a perfect market view)
• The evolutionary perspective: Policy making take place within institutional arrangements, and cannot be understood without reference to historical, cultural and other factors (path dependency)
The policy cycle
Policy makers
PoliticiansMinistry
staff
Agencies, etc
Operational level
Constituency
Industry,institutes,
research groups etc.
Policy analysts
Policy research,consultants,
OECDetc.
Proposals
Funding
Proposals Funding
Promises
Lobbying
The real thing
Lennart Elg, VINNOVA
The policy co-ordination scale
9. Government strategy8. Establishing central priorities
7. Setting limits on ministerial action6. Arbitration of policy differences
5. Search for agreement among ministries4. Avoiding divergences among ministries
3. Consultation with other ministries (feedback)2. Communication to other ministries
1. Independent decision-making by ministries
Integration
• Sectorial policy integration” implies:
– the incorporation of environmental concerns – the protection and long-term sustainability of natural life-support systems – into all stages of policymaking in non-environmental policy sectors, with a specific recognition of this goal as a guiding principle for the planning and execution of sectorial policy
• this should be accompanied by:
– an attempt to aggregate presumed environmental consequences into an overall evaluation of governmental policy, and a commitment to minimize contradictions between environmental concerns and sectorial policies by assigning principled priority to the former over the latter.
A taxonomy of innovation policy (Den Hertog, Dialogic)
DOMAINS / GOALS Sectoral innovation policy
Multi-sectoral innovation policy
Core innovation policy i.e. aimed primarily at innovating (ultimately) industry and economic growth
Innovation policy in a limited sense (basically technology and industrial policies)
Integrated STI policies
Broad innovation policy i.e. aimed at (ultimately) economic growth and Quality of life
Innovation policies in other sectoral domains e.g. innovation policies in health, innovation policies in the environment
Horizontal / comprehensive / integrated or coherent / systemic innovation policies
Barriers to horizontal policy integration
• Lack of understanding of IP in other domains• Strong, segmented belief systems• Schools of thought being reproduced through
recruitment and socializing• Lack of capability to exploit windows of opportunity to
recouple problems, proposals and politics• Definition/understanding of other policy areas as rivals• Dominance of efficiency imperative in policy making• Ineffective involvement of stakeholders• Drivers and instruments of policy differ across domains
History
• Economic specialization defines long term path dependency
• Institutions and priorities have their ”defining moments”
• Priorities and agendas are implicitly strongly influenced by traditions and corporatist systems for stakeholder involvement
• Reflective governance needed
6. Knowledge about biases
• Are biases reflected in processes of policy making?
• Do governments know what they represent and exclude?
• Are there misconceived holy cows in the system?
• Are the biases resulting from economic specialisation?
SwedenPicture 1: S
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3A1 I NNO-EXP
A2 PATENTS
A3 SMEs SHARE I N R&D
A4 EMPLOYM. IN MT/HT MANUF.
A5 EMPLOYM. I N HT SERV.
A6 I NWARD FDI STOCK
BERD
A7 DI RECT GOV. FUNDI NG OF BUS. R&D
B1 S&E GRAD. (20-29)
PhDS/10.000 I NH.
B2 PUBLI CATI ONS/MILLION
B3 BASI S RESEARCHB4 SHARE RES. POL I N OVERALL BUDGETC1 BUSI NESS FI NANCED R&D AT HEI
C2 BUSI NESS FI NANCED R&D AT GOV.
C4 SHARE OF CO-OP I NNOVATORS
D1 TERTI ARY EDUC. (25-64)
D2 PARTCI PATI ON LLL
D3 KNOWLEDGE I NVESTMENTS
DX VENTURE CAPITAL
F1m % I NNOV. FI RMS MAN.
F1s % I NNOV. FI RMS SER.
F2 CAGR LABOUR PROD. (HOUR WORKED)
F3 CAGR VA I N MT/HT [MANUF?]
F4 CAGR EMPOYM. IN MT/HT [MANUF?]
S Mean
NorwayPicture 1: NOR
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3A1 I NNO-EXP
A2 PATENTSA3 SMEs SHARE IN R&D
A4 EMPLOYM. I N MT/HT MANUF.
A5 EMPLOYM. I N HT SERV.
A6 I NWARD FDI STOCK
BERD
A7 DI RECT GOV. FUNDI NG OF BUS. R&D
B1 S&E GRAD. (20-29)
PhDS/10.000 I NH.
B2 PUBLI CATI ONS/MI LLI ONB3 BASI S RESEARCH
B4 SHARE RES. POL I N OVERALL BUDGETC1 BUSI NESS FINANCED R&D AT HEI
C2 BUSI NESS FI NANCED R&D AT GOV.
C4 SHARE OF CO-OP I NNOVATORS
D1 TERTI ARY EDUC. (25-64)
D2 PARTC I PATION LLL
D3 KNOWLEDGE I NVESTMENTS
F1m % I NNOV. FI RMS MAN.
F1s % I NNOV. FI RMS SER.
F2 CAGR LABOUR PROD. (HOUR WORKED)
F3 CAGR VA I N MT/HT [MANUF?]F4 CAGR EMPOYM. I N MT/HT [MANUF?]
NOR Mean
Sources of incoherence
• Often persistent gaps between what is perceived as challenges and institutional responses to meet them
• Competing rationalities in governments• Persistent short-termism tend to undercut strategic
needs• NPM: Needs strategic support to enhance long-termism• Different views and understanding of IP• Different imperatives for different policy areas• Fragmentation reduces strategic capabilities • Competition and personal ambitions
Fish farming as nexus of policies
Aquacultureis fishing!
Aquacultureis fishing!
Aquacultureis farming!Aquacultureis farming!
Aquaculture is anenvironmental hazard!Aquaculture is anenvironmental hazard!
Aquaculture shouldbe process industry!Aquaculture should
be process industry!
Farmingof fish in the sea
MDMDNHDNHD
LDLD
What is this newphenomenon
”aquaculture”?
FIDFID
Who is to takeadministrative responsibility?
Long termism
• Most countries need long term approaches for strategic priority setting
• But existing institutions and practices (fragmentation, budget mechamisms) prevail
• Many countries compensate for this through by-pass operations and new funding mechanisms
The use of evaluations in Austria
Impacts of conducted evaluation
N %
Ex-post legitimating of the programme
27 90 %
Re-allocation of funds 10 33 %
Input for stop-or-go decisions
6 20 %
Substantial change of funding policy
9 30 %
Change of processes 2 7 %
Other 9 30 %
Total 30
Source: tip survey, Jörg 2004).
Building intelligence into policy learning
• Policy learning mostly takes place through ex ante mechanisms like foresight and white papers
• Evaluation too often used for legitimization • Organisational mechanisms like tasks forces, team work
etc support learning• Increasing need for socio-institutional adjustments
stimulate knowledge flows• More systemic and integrated evaluations in innovation
policy are needed• Implementation and monitoring systems may boost
learning
Some conclusions
• Integrate learning across the policy cycle• Governance practices are tightly linked with
capacities for policy learning• Leadership and communication will support a
learning oriented organisation• Develop appropriate knowledge bases to
support agenda setting, prioritization and implementation
• Develop pragmatic public-private interfaces to enhance information exchange
• Balancing imperatives in horizontal approaches