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.

English Also available in: Chinese

Executive summary

The OECD Project on Demand-Side Innovation Policies was launched in 2008 under the auspices of the Working Party on Innovation and Technology Policy (TIP) and the Committee on Industry, Innovation and Entrepreneurship (CIIE) as input to the OECD Innovation Strategy. This final report provides insights into the rationale and scope for public policies to foster demand for innovation and draws on country experience and case studies to illustrate the risks and opportunities for demand-side innovation policies.


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