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Mapping Weak Signals

Inspired by: FP7 » A Holistic Approach: Demand and Supply-Driven Innovation Policy

version: 1 / created: 2010-08-09
id: #950 / version id: #950
mode: VIEW

Originally submitted by: Vanessa Watkins
List of all contributors by versions (mouse over)
Last changed by: Vanessa Watkins
WI-WE status:
submitted unpublished

Source of inspiration

European Commission Framework Programme for RTD (FP7)

Theme/activity of inspiration

Theme 8 - Socio-economic Sciences and the Humanities

Sub-theme/area of inspiration

Use of indicators and related approaches for the evaluation of research policies and programmes

Optional reference/s to FP7 project/s

Use the following format: Project Acronym (Project Reference No.). Use commas if more than one project is associated to this Wild Card, for example: ALFA-BIRD (213266), SAFAR (213374), LAPCAT-II (211485)
Source: INFU (225229) - http://www.innovation-futures.org/ http://www.scribd.com/doc/20454781/Demand-and-user-driven-innovation-policy-framework http://www.giga-hamburg.de/dl/download.php?d=/content/publikationen/pdf/gf_global_0901.pdf

Uploaded reports, images or pictures related to the Weak Signal

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Signal's headline

(max. 9 words)
A Holistic Approach: Demand and Supply-Driven Innovation Policy

Signal's description

(approx. 150 words)
Please describe the Weak Signal (approx. 150 words)
So far, traditional innovation policy mostly focuses on the development of innovation, the supply side of innovation, so to speak. Researchers from the German Institute of Global and Area Studies identified four main trends concerning global trends in innovation policy: 1) public funded technology programs, 2) innovation intermediaries (bringing together research and industry), 3) enabling producer-user relationships and 4) spending for R&D as share of the GDP. Recently, in Europe, a political discussion about a stronger emphasis on the demand side of innovation has started. The insight that both demand and supply side factors influence the way innovations emerge and diffuse on the markets becomes more common. Recent examples in China show that a focus on the supply side alone does not lead to the desired sustainable success, if other factors lack. Demand-driven innovation policy promotes innovativeness and diffusion of innovations by stimulating demand and by creating better conditions for the take-up of innovations. In contrast to supporting the R&D sector, it aims at the institutional design of the innovation system that is decisively responsible for a sustainable success of innovations. Discussed measures are (partly already implemented): financing and tax incentives, the public sector as lead customer (pioneering activities), public-private partnerships, public foresight and communication of innovation fields to the wider public to increase acceptance of new technologies. Demand-driven innovation policy especially drives innovations in the field of environmental technology, transportation and health. In Germany government incentives have created a large market for solar panels, and public funded pilot projects for electric cars are about to create kind of a test market with limited risks for the participating companies.

Keywords

innovation, policy-making, public foresight, demand-driven, research and development

Signal's first apperance

2005-now

Signal's potential evolution

It could lead to...
issue type of issue/development potential impact on society timeframe for the issue to become at least 50% probable
#1 Change in current innovation patterns new/emerging
 		beneficial
 		now-2015

Importance

please specify
please select
Level 3: important for the European Union

Key driving forces of this signal

Please use these boxes to provide up to 2 drivers of HIGH importance. Click on HELP to see examples:
Driver 1 Driver 2
Economic According to the European Commission, banks lack the technological knowledge to approve loans for eco-innovation and other new fields. Alternative, state-driven funding and support is highly demanded.
Environmental The climate change increases the pressure on everybody to find solutions, esp. in the named fields. Often the required solutions are too big for a single actor from the private sector to shoulder them. This frankly calls for governmental support.
Political Private innovators often hesitate to invest in new technologies, as they cannot be sure their products will be demanded / needed. Here the state can help to boost demand, either by acting as buyer, or facilitating market conditions and acceptance in the public. Developing countries want to compensate missing private investments or systematically try to build domestic competences in certain areas i.e. by building massive research facilities (see China).

Major risks & opportunities associated to the signal

Please choose the most appropriate timeframe option(s) to which you would like to provide inputs.
Risks Opportunities
before 2015 Opposition by industries / research facilities which are not supported. If the governmental support is not sustainable, for example if the government remains the only customer, the innovation force of the private economy might be weakened in the long run and money is used inefficient. A stronger focus on the demand side of innovation could lead to a change in the way resources are provided for the development of innovations – more money for public-private-partnerships foresight, large-scale projects, less for traditional basic research. Combing demand and supply side driven policy may increase the likelihood of successful innovations.

Signal's relevance for European Grand Challenges

where? please justify:
particularly relevant Europe world
Behavioural change
Sustainability and climate change

Signal's relevance for thematic research areas

please justify:
particularly relevant
Health
Environment (including Climate Change)
Transport (including aeronautics)

Research-friendly strategies potentially improving understanding of the signal

For further information about 'research-friendly strategies' click here
please justify:
particularly relevant
Addressing cohesion through a localised articulation between supply and demand
(e.g. making research institutions more engaged with their own context and local users; reinforcing knowledge flows into and out of regions; etc.