The role of the state in encouraging the global development and innovative growth of the economy
Keywords:
Developmental state, entrepreneurial state, industrial policy, science, technology, and innovation policyAbstract
The article examines the role of industrial and innovation policy for stimulating economic growth. This article will advocate that state is able to commence the innovate processes with the various strategies such: as correcting market failures and investing in the basic science; picking the winners by means of direct and indirect investment; stimulating the knowledge flows and diffusion; facilitating the public-private cooperation; taking more active “entrepreneurial” role, giving signals about new important technologies for private investors. Graphene technology investment example will be considered to argue about successful cases of government intervention to stimulate innovation growth and modernization of the economy. Thus, it will be argued that state interventions can usefully guide to the government policy making under certain conditions. However, the most effective strategy is to combine interventionists and market instruments in the STI policy to avoid both market and government failures.References
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