The influence of causation and effectuation logics on targeted policies: the cases of Singapore and Israel

Abstract

We examine the causation and effectuation logics for implementing targeted biotechnology policies using two case studies: Singapore (causation) and Israel (effectuation). After more than a decade of implementing targeted biotechnology policies, both Singapore and Israel have failed to create fully fledged biotech clusters. Singapore has been unsuccessful in creating vibrant entrepreneurial activity that will support its transformation into a knowledge economy. Israel has failed to turn its 1000 small, dedicated biotechnology firms into a substantial engine of growth and employment. The paper questions how these two policy approaches influenced the targeting of the biotechnology sectors and identifies the limits of these approaches in supporting targeting. We conclude that a combination of the two logics is needed, especially when targeting complex sectors with a yet unknown development path.

Keywords:

• biotechnology
• causation and effectuation
• innovation policies
• targeting

Notes

The paper by Phil Cooke on this issue describes how the discovery of system biology changed the investment patterns in biotechnology and, in fact, discouraged many investors from investing in start-up companies.

Based on insights from one of the paper's referees.

Recently, the National Economic Council has decided on prioritising several areas, but these do not include biotechnology.

Figure 1 displays the structure of Singapore's R&D policy system. This structure applies not only to the BMI, but also to the country's entire R&D policy system.

The REIC also includes world experts in different fields from the private sector.

OECD Biotechnology Statistics (2009).

Agency for Science, Technology and Research.

http://www.sapi.org.sg/

Targeted R&D Policy report. Available on demand from: [email protected]

Unlike, for example, Israel's decision to target the development of fuel substitutes for transportation (Government Resolution 2790, 30 January 2011).