R&D policy instruments – a critical review of what we do and don’t know

Abstract

In recent years, the term “policy instrument” has been used frequently with regard to R&D policy and innovation policy. This article examines the development of the term as part of a body of research known as “policy design”. Over the last 50 years, there has been substantial progress in setting policy design on a more systematic basis, with the development of established concepts and analytical frameworks, including various taxonomies of policy instruments. However, with just a few exceptions, this body of research seems to have had little impact in the world of R&D policy. The paper reviews the literature on R&D policy instruments, identifies a number of challenges for R&D policy instruments in the light of four transitions and sets out a research agenda for the study of R&D policy instruments, before ending with a number of conclusions.

Keywords:

• Policy instruments
• R&D policy
• policy design
• policy mix

Acknowledgements

An earlier version was presented at the 3rd Lundvall Symposium on “Innovation Policy – Can It Make a Difference?”, held at Aalborg in March 2014. The author is grateful to participants at that symposium, and especially to Kieron Flanagan, Michael Rothgang, two anonymous reviewers and the editors of this special issue for their constructive comments and suggestions.