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Demand-side Innovation Policies

image of Demand-side Innovation Policies

Demand-side innovation policies have been receiving increasing interest from a number of OECD countries in recent years in the context of slow growth and lagging productivity performance. Pressures on fiscal budgets in the aftermath of the financial crisis have also motivated governments to seek ways to boost innovation without necessarily engaging in new programme spending, primarily to meet social demands in areas such as health, energy or the environment.

This book examines dynamics between demand and innovation and provides insights into the rationale and scope for public policies to foster demand for innovation. It shows the potential - but also the limits - of using public procurement, regulations or standards to stimulate public and private demand for innovation, including among SMEs. Drawing on country experience and case studies, this report illustrates good practices for designing, implementing and evaluating demand-side innovation policies.

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Demand-side innovation policies in Japan

Japan considers that demand-side innovation policies can address global and social challenges such as climate change and ageing populations. In addition to supporting human-resource development and technology development for “green innovation”, “life innovation”, and other strategic innovation fields, the government can generate demand and encourage user demand for innovation and support individuals who take on challenges in new fields. Demand-side instruments such as regulation and standardisation, which do not rely on financial resources, can also be used to promote innovation.

English

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