Evidencing the benefits of cluster policies: towards a generalised framework of effects

Policy Sciences - Regions around the world employ cluster-based policies as part of their industrial, innovation and development policy mixes. They have become a key tool in smart specialisation...     

AMERICAN STATES AND THE INDUSTRIAL POLICY DEBATE

The current popular debate over industrial policy tends to be Indifferent to the possible relevance of economic policies in American states. The states are not only very active in this arena through their Industrial and economic development efforts, but also have untapped potential for influencing business decisions. As an integral part of the Amerlcan economic policy arena, states cannot and should not be ignored by industrial policy advocates. Some constitutional, policy, and programmatlc implications of this point are briefly discussed.     

Globalization,state, and innovation: An appraisal of networked industrial policy

One of the most pressing questions in comparative social science is whether, and to what extent, the rapid advance of globalization has negatively affected states’ capacity to initiate successful economic and social policies. This paper puts forward the notion that states continue to be relevant because they have the potential to build and sustain networks of production and learning, which are sorely needed in the current era of globalization when productive arrangements are dominated by decentralized production networks. The paper argues that government efforts aimed at building and sustaining such networks, labeled as “networked industrial policy,” have become predominant. The study features a series of fixed‐effects time series cross‐section (TSCS) regressions linking innovation performance to several networked industrial policies in 17 countries from western and central Europe. The study finds that several of the policies have a robust effect on innovation performance and technology competitiveness, even after controls are included. These findings constitute considerable support for the notion of networked industrial policy. However, the results of the present study must be treated less as a definitive answer to the research question and more as a first step in an ongoing research process.     

AN ASSESSMENT OF GOVERNMENT INNOVATION POLICIES

The authors compare the innovation policies of industrialized countries along several dimensions: the policy tools (e.g., supply, demand, environment) they use or prefer, and their national philosophies, especially whether they have explicit policies toward the development of specific industries or technologies. They also identify the principal difficulties that existing innovation policies have suffered. Among them are the lack of market know-how among policymakers, bias toward research and development-oriented stimuli rather than other aspects of innovation such as demand, and vulnerability of policies to changes in political philosophy. They conclude with a list of questions that governments initiating policies of technological choice should consider to avoid some of these pitfalls.     

The institutional structuring of innovation policy coordination: theory and evidence from East Asia

This article suggests that variations in the dominant pattern of innovation policy coordination can be analysed and understood effectively by dividing innovation and other complementary socio-economic policies into low-complexity and high-complexity tasks. The effective implementation of these two sets of policy tasks that differ in the extent, nature and intractability of collective action problems confronting the coordination process hinges on the strength of two sociopolitical institutions: bureaucratic organizational structures and interactive governing arrangements. While bureaucratic organizational structures are better suited to delivering low-complexity tasks, interactive governing arrangements are more effective in resolving high-complexity policy problems. They interact differently across political economies to structure the management of coordination challenges and thus give rise to divergent patterns of innovation policy-making. The comparative analysis of innovation policy coordination between Hong Kong and Singapore over the past two decades lends strong support to the central theoretical propositions of the article.

     

THE EVALUATION OF GOVERNMENT POLICIES FOR INNOVATION

This article is based on two premises: current innovation polices are based on very limited understanding of how Innovation occurs and the contribution to understanding that available policy research might make is severely limited by its fragmentation. The author cites Nelson's three models of the policy process as an example of the different paradigms that have guided innovation research. But, he argues, new developments suggest that the rigid boundaries are breaking down. Three examples are offered in support, each nominally based in one of the three paradigms but representing a loosening of its strictures.     

China's dualist model on technological catching up: a comparative perspective

Abstract

The central question of this paper is whether China can go beyond simple technological transfer and toward innovation in this age of globalization. By adopting an institutionalist perspective, this paper argues that China has developed a dualist model during its economic transitional period in which the foreign sector has been isolated from domestic firms, while the domestic industrial sectors have also failed to develop organic linkages among themselves to facilitate technological learning and generate innovation. This paper discusses four major institutional arrangements that deeply influence China's technological development – the institutional logic of economic reform, the state's industrial policy, the financial system and the industrial structure. It suggests that, owing to these institutional elements, China has neither developed economies of scale, as compared with the South Korean case, nor has it built up a network-type of economy similar to its Taiwanese counterpart in order to generate the mechanisms needed for technological innovation.     

Integrated Impact Assessment as Environmental Policy: The New Zealand Experiment

The scope, complexity and interrelatedness of environmental problems presents a difficult challenge to policymakers. To date, public policies have been responsive largely to particular matters of public concern. They have typically been ad hoc, sectoral and segmental. Their administration has been charged to various agencies, each with its special mission. In consequence, governments have often acted to cross purposes; small results have often been ineffectual and, as often, unnecessarily expensive. Incremental innovation is seldom able to affect significantly the tendencies of the larger system of public policy and administration within which it is undertaken. Inasmuch as no country has had long experience with administration of environmental policy, a comparison of different approaches to environmental problems is useful. Direct transfers of method from one country to another may seldom be practicable, yet there may be lessons learned from the diverse experience of governments addressing similar problems. A comprehensive and radical institutional experiment in environmental policy has been initiated in the government of New Zealand. The New Zealand experiment may illuminate the effects of institutional structure on the implementation of policy. The relationships between constitutional principles, policy priorities and administrative structures have never been clear. The problems of coping with multiple environmental trends, their causes and their consequences justify efforts to find more effective methods of policymaking.     

Policy on innovation in Australia: Divergence in definitions,problems, and solutions

Innovation has joined the mainstream in many nations as governments search for new ways to tackle challenging societal and economic problems. But Australia is seen to be lagging on innovation policy. Is this related to how governments define innovation? What do they regard as the problem they are addressing? What proposed solutions follow from this? This paper examines how Australian governments have defined innovation over four decades, signalling their policy intentions about how to make the nation more innovative. Definitions of innovation are analysed using 79 Australian (national level) policy documents published from 1976 to 2019. Close reading of these documents suggests two main definitions: innovation as technology, and innovation as culture. Topic modelling uncovers more differentiated themes, shows how definitions change over time, and demonstrates an association between definitions and political parties in government. The divergent approaches suggest a lack of coherence and continuity to policy on innovation in Australia.

Points for practitioners

• Innovation has expanded and broadened in its definition and governments and policymakers have paid increasing attention to it.
• In Australia, there are two main definitions of innovation used in policy—one related to technology and one related to culture.
• The technology view of innovation can be further divided into a focus on businesses or a focus on research and development (R&D).
• Different innovation definitions, problems, and solutions dominate at different times, with Coalition governments tending to favour business and technology over culture, and Labor governments doing the opposite.
• There are divergent approaches to policy on innovation in Australia which suggest a lack of coherence and consistency in policy over the long term.

     

The Future of Four Wheels: Government and the Automobile Industry in France and West Germany, 1971–1985

The concept of a "policy community" is useful in understanding the joint efforts of national governments and domestic business interests to secure industrial competitiveness in world markets. The definitional debate accompanying the increased use of the term in political studies, on the other hand, is of marginal value in appreciating the substance of government-industry collaboration. An analytic account of the actions of two national governments grappling with the needs of industries subject to similar circumstance, as in a sectoral crisis, provides the opportunity to apply the term in a practical manner. Policy communities are no more than the institutionalized expressions of long-established relationships between private and public interests, subject to national idiosyncracies and accumulated experience. They are not the product of a deliberate and coherent design for the attainment of specific industrial goals. This point can be illustrated by reconstructing the actions of two national policy communities in crisis, that is in situations where established relationships come under greater strain than found under "normal" circumstances and, indeed, might be expected to break down entirely. A comparison of government intervention in the automobile industries of West Germany and France, 1971–1985, demonstrates the resilience of industrial policy communities. The maintenance of established relationships is shown to be part and parcel of the emerging industrial solution. Institutions and organizations involved in crisis resolution in the French and German motor industries are revealed to have dissimilar, overarching political objectives beyond the specific and immediate needs they seek to address. The imposition of such political factors onto industrial problems is not necessarily a disservice to an industry's long-term vitality.     

Stimulating ‘green’ technological innovation: An analysis of alternative policy mechanisms

As our understanding of human impacts on the environment has increased, it has become clear that we need to move toward a closed-loop industrial society in order to avoid undesirable health and ecosystem consequences. Achievement of this goal depends on radical technological innovation in both products and processes. This paper explores how to design public policy mechanisms to stimulate rather than impede pollution-preventing technological innovation. It begins with a discussion of the role of government in civilian technology development and diffusion. It then sets out six design criteria for policy to promote green technology innovation. Based on this set of design criteria, the article assesses the potential and limitations of current U.S. policy approaches to stimulate technological innovation that moves us toward a minimal waste society. The main conclusions of this assessment are as follows. Over the past decade, the U.S. environmental policy system has experienced a variety of reforms and new initiatives, many aimed directly at promoting environmentally-friendly technological change. The strengths of these reforms are to increase the information that the private sector has about the magnitude and cost of their environmental impacts and to allow greater flexibility in the technologies that firms choose to meet environmental regulations and goals. Because of these reforms, firms are likely to undertake technological innovation for the environment in situations with clear short-term economic benefits, i.e. to capture the much heralded win-win potential of environmental regulation. However, these reforms have significant weaknesses as well. Unless policy provides stronger political or economic incentives and clearer signals about future environmental performance requirements, we are unlikely to be able to drive technological innovation in industries where the pay-off is more longterm or uncertain, and thus will make only limited progress toward the goal of a minimal waste society.     

Policy Adoption and Policy Intensity: Emergence of Climate Adaptation Planning in U.S. States

The United States is experiencing growing impacts of climate change but currently receives a limited policy response from its national leadership. Within this policy void, many state governments are stepping up and taking action on adaptation planning. Yet we know little about why some states adopt State Adaptation Plans (SAPs), while others do not. This article investigates factors that predict the emergence of SAPs, both in terms of policy adoption and policy intensity (goal ambitiousness). Applying the diffusion of innovation theory, I consider the relative influence of internal state characteristics, regional pressures, and test for conditional effects between government ideologies and severity of the problem. The results show interesting differences between predictors that influence policy adoption and ambitiousness. States are more motivated to adopt a policy when faced with greater climate vulnerability, have more liberal citizenry, and where governments have crossed policy hurdles by previously passing mitigation plans. The intensity of policies and goal setting, moreover, is more likely to be driven by interest group politics and diffuse through policy learning or sharing information among neighboring states in Environmental Protection Agency regions. These findings support an emerging scholarship that uses more complex dependent variables in policy analysis. These variables have the potential to differentiate symbolic from substantive policies and capture finer information about predictors of importance.     

Environmental Tax,Polluting Plants’ Strategies and Effectiveness: Evidence from China

Although environmental taxes have become a popular policy tool, their effectiveness for pollution control and impact on the compliance strategies of agents remains questionable. This research uses a quasi‐experimental design to examine the effectiveness of the Pay for Permit policy, an environmental tax that has been imposed on water pollution emissions in Lake Tai Basin, Jiangsu, China, since 2009. A plant‐level panel dataset from 2007 to 2010 is used for both difference‐in‐differences and difference‐in‐difference‐in‐differences analyses to compare the pollution discharge, pollution abatement, and pollution generation of policy participants and control groups. The results indicate that treated plants reduce their emissions by about 40 percent after two years of the policy implementation. Thus, the policy generated approximately a 7 percent decrease in the industrial chemical oxygen demand emission in the entire Lake Tai Basin based on the emission level of 2007. Pollution is primarily reduced via end‐of‐pipe abatement instead of cleaner production. Our results show the effectiveness of environmental taxes in controlling industrial pollution, and indicate that the tax may not motivate the adoption of innovative techniques in the short term.     

Collaborative Innovation,New Technologies,and Work Redesign

Stakeholders agree on the need to promote innovation in work organization in public services. This article deploys the concept of collaborative innovation to discuss employees' and managers' experiences of a major technology‐driven work redesign project within National Health Service pharmacy services in Scotland. The authors draw on extant literature on New Public Management (NPM) and collaborative approaches to innovation to frame more than 40 in‐depth interviews with managers and employees. They find that key components of collaborative innovation—related to joint problem‐solving, interdisciplinary working, and mutual learning—were important to the success of the redesign project and had positive impacts on job quality for some employees. The authors argue that researchers and policy makers should look beyond NPM‐driven models that have dominated some areas of the public innovation literature to consider the potential added value of collaborative innovation to improving both work and service delivery in the public sector.     

SUBGOVERNMENTS AND THE IMPACT OF POLICY FRAGMENTATION AND ACCOMMODATION

For many years political scientists have utilized the subgovernment model of policy-making to explain certain types of policy output. Recently a number of scholars have argued that the traditional conceptualization of subgovernments was simplistic and incomplete. They view subgovernments as a complex and integral part of the larger policy-making environment. This paper examines this “new” subgovernment by analyzing its role in contemporary public policy-making. If subgovernments have lost their autonomy and been exposed to the complex demands of the larger political system, what impact does this have on policy outputs? Relying upon the literature on subgovernments and their principal components, the paper offers an interpretation of how subgovernments have potentially expanded their influence on public policy as a result of two contemporary developments: policy-making fragmentation, and the accommodation of policy outputs.     

URBAN GOVERNMENT, URBAN POLITICS AND THE FABRICATION OF URBAN ISSUES: THE IMPOSSIBILITY OF URBAN POLICY

An "urban" definition of public policy problems raises great difficulties for the policy maker. If we emphasize implementation as a primary factor in evaluating public policy, we have good grounds for questioning the wisdom of an urban perspective. But urban questions have been and still are major areas of concern in public policy formulation. The ALP federal platform contains a long section on urban policies, reiterating what the Department of Urban and Regional Development (DURD) was striving to achieve under the Whitlam Government. At state level, urban problems have been tackled with varying degrees of success and seriousness, although at this level overall urban perspectives tend to be ignored, for reasons we shall indicate. However urban planning authorities have been tried in most capital cities, and metropolitan plans have been drawn up for all of them. They have concentrated mainly on land use and urban form. By the 1970s a common criticism of such planning was that it left aside many social and economic aspects of urban growth. For example, one (admittedly partisan) government source—the N.S.W. Department of Decentralization and Development—noted "a massive and increasing trend towards socio-economic segregation":
…the remoteness of central city facilities …the cost of commuter transport and the inadequacy of community facilities in low-income outer suburbs are operating to perpetuate economic under-privilege.     

Policy Diffusion and Program Scope: Research Directions

A major omission in diffusion research is the scope of changein program adoptions. Diffusion studies focus almost exclusivelyon the rate of change, thus ignoring possible variance in thecontent of programs selected by leaders, followers, and laggards.States may adopt new programs in one area, such as state-mandatedstudent testing. While most states now have a testing policy,these policies vary in terms of the number of students subjectto examinations. Thus, the amount of program change dependson the content of each state's policy. An interstate diffusionstudy of the pattern of program adoptions ignores this variance.It is also possible that policy scope is influenced by certainaspects of the diffusion process. One possibility is that programinnovators generally select more extensive programs than followers.Similarities or differences in policy scope among adopters mayalso be related to innovation attributes (e.g., whether a newprogram is symbolic, redistributive, or administratively complex).Finally, the number of years required for interstate diffusionmay result in similarities or differences in policy content.     

Bureaucratic Job Mobility and The Diffusion of Innovations

In studies of innovation, policy entrepreneurs recognize latent demand for new policies and then expend resources to promote them. But studies of policy entrepreneurs have generally focused on the demand for innovation, while neglecting the supply side of policy entrepreneurship. This article argues that bureaucratic labor markets affect the emergence of policy entrepreneurs, and so affect the diffusion of policy innovations across local governments in the United States. Analysis of a survey of municipal police chiefs and water utility managers relates governments' hiring and promotion policies to their adoption of professionally fashionable innovations. Agency heads who advanced to their current positions diagonally (arriving from another organization) are more likely to initiate these innovations than are agency heads who were promoted from within. Bureaucratic policy entrepreneurs emerge where government demand for innovation meets a supply of mobile administrators, who carry the priorities of their professions into the agencies that they serve.     

POLICY-MAKING IN THE AMERICAN STATES: TYPOLOGY, PROCESS, AND INSTITUTIONS

The three levels of government in the U.S. federal system maintain a different set of policy priorities because they operate under varying environmental constraints and resources. Efforts to categorize and specify the politics in terms of policy types have been particularly fruitful at both the federal (e.g., Lowi) and the local (e.g., Peterson) levels. At the state level, however, the typology perspective has yet to be more fully developed. This paper makes a preliminary effort to construct a typology framework in understanding state politics and policy. First, politics can be differentiated between growth and redistribution in the structural economic context. While redistributive politics are largely structured by class-oriented issues, growth politics are predominantly shaped by territorial concerns that temper class and ideological differences. Equally important, the growth-redistribution distinction can be supplemented by the politics of routine services, such as public education. The latter remains dominated by service-provider groups. Moreover, based on an empirical analysis of hundreds of bills in one state legislature, these political differences are found to have contributed to variations in policy consensus among lawmakers as well as interest group representation in agenda setting and legitimation across policy arenas. Our findings also suggest limitations to the typology framework.     

中国政策科学的理论困境及其本土化出路

十多年来,我国政策科学在现实政策问题的推动下显得异常的活跃,但由于理论和方法主要是照搬其他学科和西方的体系,缺乏学科自身理论的建树和创新,这种理论上的困境导致学科整体发展缓慢,使政策科学学科长期停留在较低的水平。从讨论中国政策科学发展的基本情况和特点入手,分析政策科学在中国发展所面临的问题和困境的根源,试图从社会科学本土化的角度探讨中国公共政策科学追求自身完善,摆脱学科发展困境的某些理论和方法的问题。