The role of policy in innovation: The challenging distribution of social, material and monetary benefits

Abstract

Purpose

Contemporary innovation policy investments rests on the assumption that the main problematic interface is the one between the non-business developing setting and a rather friction-free producer and user setting. Given a business landscape characterized by interdependencies, any innovation attempt will be faced with complex interfaces also within and among all these settings. The purpose of this paper is to shed light over this issue through the investigation of the interface between policy and a specific innovation journey. The attention is directed to the creation and distribution of social-material values; and the translation of these values into a monetary dimension.

Design/methodology/approach

To fulfill this aim the authors utilize an empirical study on the commercialization of university research results in the field of solar power technology, based on the ARA model as a conceptual and methodological foundation, with a focus on the establishment of resource combinations, activity links and actor bonds in the involved developing, producing and using settings. In order to pin-point the creation of social-material values and the establishment of a monetary dimension the authors used a model adapted from Håkansson and Olsen (2015).

Findings

From a national policy perspective, the transnational nature of innovation processes and the connectedness of resources across different, often far-away places, entail a loss of control on the social-material and monetary benefits of innovation; even more so if the policy of one country stands against that of another country. Still, not only policy but also representatives for academic research and business seem to consider the transnational aspect as an exception.

Research limitations/implications

Due to that the embedding in the user setting did not occur as expected; with the Swedish focal firm as main interface, but from a Chinese firm that the authors did not have access to, the main focus is on the developing and the producing setting, while the embedding in the user setting is covered through indirect information.

Practical implications

The role that established production structures have for the embedding of innovations into producing and using settings seems to be neglected in policy circles – although these have a strong impact on the creation of social-material value and a monetary flow.

Social implications

See practical implication.

Originality/value

The paper underlines the impact of interfaces with established production structures for the creation of social-material value and monetary flow – and for transnational dimension of the innovation journey.

Citation

Waluszewski, A., Baraldi, E. and Perna, A. (2017), "The role of policy in innovation: The challenging distribution of social, material and monetary benefits", IMP Journal, Vol. 11 No. 1, pp. 51-71. https://doi.org/10.1108/IMP-10-2015-0058