Making Innovation Policy Work: Learning from Experimentation, OECD, The World Bank.
OECD, The World Bank – Industrial and innovation policies characterized by top-down government interventions are not the right approach to development.
The reasons for the failures of such policies are well known, and include the risks of capture by vested interests, lack of information on the economy and strong information asymmetry with private actors, and a lack of capability in the public sector for effective policy making.
Another, more appropriate approach innovation (and industrial) policy, involves search, experimentation, monitoring learning and adaptation, all of which need to occur in a context of international openness to knowledge, trade, investment and competition. This new approach also rests on close co-operation with private and non-governmental actors, who are often better placed than governments to identify barriers to innovation, and point to areas for productive investment or policy action. more> http://tinyurl.com/qgyq3us