Page of

Can the Nelson-Arrow Paradigm Still Be the Beacon of Innovation Policy?

Can the Nelson-Arrow Paradigm Still Be the Beacon of Innovation Policy?

Chapter:
(p.679) Can the Nelson-Arrow Paradigm Still Be the Beacon of Innovation Policy?
Source:
The Rate and Direction of Inventive Activity Revisited
Author(s):
Manuel Trajtenberg
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226473062.003.0023

This chapter considers the broader legacy of the Nelson–Arrow paradigm, with its focus on appropriability and the role of government support for early-stage research on innovation policy. It highlights how many of the central challenges facing innovation policymakers cannot be addressed directly through the Nelson–Arrow framework—for example, while the framework assumes a single potential public funder, the question facing policymakers today is how much an individual country should fund, given the global nature of research and the potential to benefit from research conducted in other jurisdictions. The chapter focuses on the limited influence of rigorous economic analysis on actual policy, and suggests a focus on more policy-oriented research.

Keywords:   Nelson–Arrow paradigm, innovation policy, public funder, policy-oriented research

Sign In

Copyright © 2021. All rights reserved.
Privacy Policy and Legal Notice