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Box K1.3. Public-private partnerships for innovation

Innovation is a risky and complex business. Public-private partnerships can be used to share these risks and develop the networks that underpin the innovation process. These partnerships allow the pooling of resources and combining of skills. Investment in basic science, which requires resources that are beyond the reach of the private sector, benefits from government funding. Commercialization of technologies requires appropriate skills, which are more likely to be found in the private sector. An appropriate legislative framework needs to be in place to allow the technology to be licensed to the private sector and suitable management frameworks should be in place to capture and package the technology that is to be commercialized.

The range of possible actions to strengthen the various components and dimensions of the innovation system is illustrated in Table 1.4.

Table 1.4. Options for improving the functioning of an innovation system

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The need for systemic coordination

Effective implementation of innovation policy requires the presence of an efficient institutional system. The horizontal nature of innovation policy and the variety of entities involved in innovation performance at both central and regional levels demands appropriate coordinating mechanisms (Box K 1.4.). This is particularly the case in the area of science and technology. In a number of countries the role of systemic coordination in the implementation of innovation policy – as well as the general supervision of the NIS – is delegated to special public bodies, known as Innovation Agencies (see Box K 1.5.).

Box K1.4. The public sector role as coordinator

Innovation is a complex process, which results from the interaction of many agents, public and private, over an extended period. It is critical that the public sector provides the leadership and vision to coordinate these efforts and to promote a culture of enthusiasm for innovation. In particular, public initiatives can create innovation platforms that bring together policy, business, government procurement and research perspectives and resources to generate innovative solutions to existing challenges.

Three levels of coordination can be distinguished:

•Planning of policy and shaping of strategy by the government and particular ministries. Advisory bodies are also involved to some extent in these efforts.

•Entities that provide financial support to research activities (scientific boards and agencies dealing with innovation).

•Entities that conduct research work introduce innovations and are direct beneficiaries of public funds for R&D.

•Innovation Councils (Box K 1.5.) can also have a role in the coordination process.

18 Policy Options and Practical Instruments

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Box K1.5. Innovation Agencies and Innovation Councils

The creation of an Agency responsible for the process of implementation of innovation policies can serve to improve efficiency and deliver better outcomes. The competencies for this task can be attributed to a new organization or to an existing one, identified as a result of a feasibility analysis. In general, agencies can play a dual role:

•Coordination and provision of information, consultative and training services; and

•Implementation of specific programmes.

The coordination role should be defined in broad terms, so to encompass the different aspects of the multifaceted innovation activity. A particular emphasis should be made on the activities of the implementing Agency as an actor of the national innovation system, emphasizing not its direct participation in the allocation of public resources but its role as a dynamic partner and source of initiatives in spurring the innovation activity of firms and R&D institutions.

The idea of Innovation Councils, established at the highest level of the hierarchy to manage innovation policy, is gaining more and more support in Europe. The main objectives of such councils include preparing strategic development directions and evaluations of government policies in the area of innovation. Simultaneously, councils are mandated to build a consensus as regards the initiatives supporting innovation among different stakeholders (government, entrepreneurs, scientific circles and non-government organizations) operating for the benefit of innovation growth. Innovation councils raise the profile of innovation policies and facilitate coordination. An example is the Polish Innovation Council, which is tasked with high-level coordination functions and the supervision of the implementation of The Strategy for Increasing the Innovativeness of the Economy for the years 2007-2013. In order to facilitate their functioning, Innovation Councils need to decide:

•What are their competencies and responsibilities? And how the outcomes of their actions will be measured?

•How are decisions taken?

•What are the rules that govern their operations?