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Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.

The purpose of this paper is to explore and discuss possible future pathways of the Finnish science, technology and innovation (STI) system. The paper sketches three speculative pathways for the Finnish STI system.

Theoretical considerations behind the pathways are based on analyses of the determinants and behaviour of small open economies, their innovation systems and governance. The empirical background of the paper is in the current trends of the Finnish economy and STI system. The analysis of pathways is based on three dimensions: institutionalized policy environment and economy, domestic interest groups and policy and STI institutions and funding. Changes in these dimensions are analysed by paying special attention to two variables: the position of the nation state and the general economic development.

The first future pathway outlined is based on an optimistic view by setting Finland on the basis of past success factors as an European and global STI hotspot. The second pathway is based on the assumption that the Finnish STI system will be increasingly subordinated to international structures and decision-making. The third one is geared around the assumption that the Finnish STI system will be dominated by industries.

While Finland has been seen as a European showpiece of innovation since the early 2000s, currently the country’s national economy and STI system are undergoing a critical period. The paper sheds light on this transformation and its potential future outcomes and attempts to raise debate on the options policy makers may face in the increasingly complex global environment in small countries.

The paper introduces potential future avenues for the Finnish STI system and provides a contribution to the debate of the future of small countries’ STI systems and innovation policies by emphasising the limited space of the STI policy choices and how the development paths and space for policy making evolve from the interaction of socio-economic factors between domestic and wider international context.

This study provides a configurational examination of how policy designs influence the innovation performance of the emergency industry in China.

This study employs the Data Envelopment Analysis Malmquist index (DEA-Malmquist) to quantify the innovation performance of the emergency industry and then codes the innovation policies to calculate the syntactic components based on institutional grammar tools (IGTs). The configurations of syntactic components were determined by applying the fuzzy-set qualitative comparative analysis (fsQCA).

The results indicate that rules- and norms-oriented policy designs would improve the innovation performance of China's emergency industry. In the developed provinces, the “Deontic” and “aIm” combinations in the policy are useful for improving performance. In the developing provinces, the ambiguity of the “aIm” and “Context” conditions in the policy is leading to low performance. Additionally, a lack of strategy-oriented policy design would also result in poor performance.

Most previous studies used substitute variables to understand policy impacts. This study contributes to identifying the impacts of the syntactic components of policy designs on the innovation performance of the emergency industry. The findings can assist policymakers in developing more effective policies to stimulate innovation development in the emergency industry.

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.

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).

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.

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.

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.

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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.

The aim of this paper is to outline what the intended benefits the smart specialization strategy (S3) is meant to create, and through what policy measures; that is, to shed light over what underpinnings S3 is based on, and if the measures based on these can affect the relations between “academia, businesses, and local authorities” – where the public and the private actors might have partly overlapping interests, but with different needs and rationales.

The research design of this paper is based on the industrial marketing and purchasing network approach, that is, the empirical observation that business exchange has a content, which affects and gives imprints on the actors engaged in the exchange. To determine whether the S3 strategy in general, and in the two investigated regions in particular, can affect the embedding of innovations in using, producing and developing settings, and if so how, this study applied the actors–resources–activities model. In addition to investigation of the S3 strategy in general, two case studies were conducted, one each in two European Union regions with rather different business and academic research characteristics: the Marche region in Italy and the Uppsala region in Sweden.

The S3 measures rest on the judgement of which “domains” to support can be made by policy actors without deeper analysis of how the assumed firms representing these domains are related in terms of how resources are combined and activated. Instead, the S3 policy analysis is based on local policy organizations desk table investigations of what appears as innovative. Hence, in practice, the key S3 measure is still to transfer knowledge from the public to the private sector. This entails that support in terms of how to create change in established resources interfaces, which is a main source of innovation to which both established and emerging localized firms are related, remains out of policy sight.

The ambition with this paper is to discuss what changes S3 – with the ambition to develop and match academic research to business needs – implies and what underpinnings it is resting on. Hence, the focus is directed to what new types of policy arrangements are supposed to result in what types of benefits – and last but not least, the ability for these to interfere with businesses which are interconnected across spatial borders.

The recent economic crisis has significantly slowed Slovenia’s recent social and economic progress and exposed some important long-term problems such as a reliance on low value added industries and lagging labor productivity. The Slovenian government has taken steps to create research partnerships between public science and the private sector and among multiple private sector companies. The purpose of this paper is to conduct a social network analysis (SNA) of the research partnerships and examine whether public funding has created the desired partnerships.

The authors employed a SNA in two stages. In the first stage, the authors treated the founding partners of government-funded 32 research centers as a single two-mode network and investigated how each of the members was bound to the network. In the second stage of the analysis the authors used project data from ten of the centers to characterize a project network based on collaborations on specific projects. Thus, the second stage overlaps the center network with the project network. The authors used information from interviews with network members to assist in interpreting the results.

Networking policies are stimulating collaborations among different types of centers and partners, but to differing degrees. While the formal collaborative network showed strong participation from the private sector, public research organizations, and higher education institutions, some of the centers are not well connected to the rest of the network. Partnership in the development of a proposal in response to a tender does not always translate into project collaboration, and the networks have evolved as project workplans and staffing plans are developed. The innovation network is evolving into an international network within and across scientific areas. Networks are path dependent and require policy stability; experienced bridging institutions can fill gaps where partners lack experience.

The definition of a network member is the company, faculty, or department. In reality, individuals within these organizations are acting on their own connections and experiences, and these may or may not encourage other individuals in the same organization to engage in partnerships. Thus, the authors may be overstating the extent to which one connection among organizations generates experience that will lead to future connection. Another important limitation of the data is that for the second stage of the analysis the authors received project information from only ten of the 32 formal center programs examined in the first stage.

Partnership is a learned behavior and the development of trust among partners takes time. The Slovenian government should provide policy stability and allow niches of technical excellence to emerge through consortium proposals. They should monitor the project partnerships and adjust funding so that it is reaching applicants that are actually partnering on projects rather than working alone or within their own institutional types. Other nations should also monitor the impact of partnership programs to ensure that as they evolve the funding is continuing to support and demonstrate the benefits partnership behavior.

Due to the path dependent nature of innovation partnerships, the authors expect participation in innovation networks to generate a change in the culture of research and development (R & D) partnerships in Slovenia. However, this transition will occur faster as organizations partner face-to-face on actual projects. Centrality in a network fosters common understanding and shared principles of collaboration.

Like many nations struggling to emerge from the recession, Slovenia has to examine its long-term strategy for upgrading its industries and improving productivity. This paper demonstrates how policies to enhance the innovation agenda might be more effective by examining how the networking resources are actually being used, whether participants are participating in networks that cross institutional types, whether policies are encouraging the exchange of information across stages of the innovation process, and therefore whether the policy will move the culture toward greater collaboration and R & D effectiveness. The results can assist Slovenia’s policymakers in redesigning innovation network policy.

Previous studies of innovation policy claim that there is a mismatch between the underlying assumptions of these policies and the reality of how firms involved in innovation operate. The purpose of this paper is to deepen the knowledge of actual innovation processes in order to contribute to the modification of innovation policies.

The paper is based on: a literature study focusing on the criticism and suggestions for revision of mainstream policy; and two empirical illustrations of innovation through interactive resource development. The framework is rooted in the industrial marketing and purchasing (IMP) approach to innovation, implying that a potential innovation needs to be embedded in three network settings – the developing, the producing and the using settings.

The study shows that effective policy requires a modified perspective on the basic mechanisms behind innovation. First, the paper emphasises the central role of inter-organisational interaction for the outcome of innovation processes. Second, it shows that the embedding of an innovation in its business context requires the joint efforts of several organisations. Third, implementation of a potential innovation is a time-demanding process.

The implementation of a potential innovation requires close connections in relationships and networks. Policy practitioners therefore increasingly need to take these constellations into account. Furthermore, time frames must be extended to take long-term effects into consideration.

The framing of innovation as “interactive resource development” reflects the criticism of innovation policy identified in the literature study. The IMP approach applied in the empirical illustrations of these phenomena was useful for providing suggestions for modifications of current innovation policy.

This Special Issue of the European Journal of Innovation Management sheds new light on the burning issue of Research and Innovation Strategies for Smart Specialisation (RIS3), both in terms of their policy formulation and their practical implementation in the field. This new policy approach refers to the process of priority setting in national and regional research and innovation strategies in order to build “place-based” competitive advantages and help regions and countries develop an innovation-driven economic transformation agenda. The paper aims to discuss these issues.

This is an important topic both in the current debate about a new industrial policy for Europe and as a policy option for a successful crisis exit strategy led by public investments in the real economy. Moreover, smart specialisation is promoted by the European Commission as an ex ante conditionality for all regions in Europe to receive European Structural and Investment Funds in the field of innovation. Thus, it has become a pre-requisite for accessing fresh funds for investing in badly needed innovation-driven productivity growth throughout the European Union (EU).

The six papers in this Special Issue are the fruit of ground-breaking research and policy testing by nearly 20 leading academics and policy makers throughout the EU. They explore the early smart specialisation concept and its further developments, examine the methodological tools at its disposal and advance specific policy proposals and governance considerations based on actual experimentation in the field.

All these make the present Special Issue of the European Journal of Innovation Management an important research milestone. This Special Issue is the fruit of a call towards the European academic and research community to help shaping and advancing the smart specialisation concept and thus contribute to better position regions and countries in the global economy through innovation-driven policies.

The purpose of this study is to examine the impact of government support policies and research and development (R&D) activities on product innovation under market uncertainty.

This study applies logistic regression analysis to a sample of 4,000 South Korean manufacturing firms in order to investigate the impact of government policies and R&D activities of the firm on firm innovation performance, with particular interest in the moderating role of the firm's perceived market uncertainty (PMU).

Policies supporting industry/university/institute/local collaboration are found to have greater benefit under high PMU. Surprisingly, support for a consortium among different-sized firms has a negative effect on product innovation, although this negative effect disappears under high PMU. Both support for the protection of intellectual property (IP) and support for the resolution of manpower shortages have strong positive effects on the propensity to innovate products, but in both cases the moderating effects of uncertainty are negative. Finally, all types of R&D activities have positive effects on the propensity to innovate, more so for new product innovation than for improved product innovation.

To the best of the authors' knowledge, this is the first study to examine analytically the moderating effect of PMU in the effectiveness of government policies promoting innovation in the manufacturing sector. The study is potentially useful both for policymakers in deciding which policies to implement under prevailing market conditions; and for entrepreneurs choosing between different forms of government support, particularly given the abnormal levels of market uncertainty prevailing in the Covid-19 era.