Economics of innovation

HUB 2010-2011

Exam: * 2 essay-questions (6+6 points)
Answer in dutch or English is free * list of multiple choices. (8 points) * No negative correction per question, but an overall correction (on 25 questions we start at -4) * examples of multiple choice questions are on HUBWISE * Duration: 2hours

Introduction: Measuring innovation Part 1
What is innovation? * The introduction of a new or significantly improved product, process or method. * Create added value * Helps accelerate the recovery & puts countries back on a path of sustainable growth (jobs economy…) * Policies for innovation should reflect innovation as it occurs today: is gaining importance.
Crisis <-> Innovation => new opportunities -> new ventures -> new businesses -> new jobs.

policy principles for innovation
Empowering people to innovate (empower them) * Education & training systems. * Get most out of people (employees). -> L/T investment policy (no direct results). * Get most out of people (clients). -> push them to give feed-back (complains). * Consumers should participate in innovation process * Foster an entrepreneurial culture
Unleashing(=open/ bring it 2 the market) innovations * Ensure appropriate framework conditions (support for financing (private – governmental subsidies), logistics, information) * Mobilize private funding * Foster open markets, a competitive and dynamic business sector
Creating & applying knowledge (input side) * Invest in coherent R&D systems. * Problem: invest a lot of €€ while others make profit 2 of the results without paying for it. * Solution: public R&D: ‘public R&D’ (funded by state) to complement private investments * Build a modern and reliable knowledge infrastructure to make knowledge available
Applying innovation to address global & social challenges *