Template-type: ReDIF-Paper 1.0
Author-Name: Toivanen, Otto
Author-Email: otto.toivanen@helsinki.fi
Author-Workplace-Name: University of Helsinki, Helsinki Center of Economic Research
Title: Innovation Policy, Entrepreneurship, and Development: A Finnish View
Abstract: This article first reviews the economic rationales for innovation 
	 policy. It then describes the Finnish innovation policy and policy 
	 making environment. The Finnish policy is evaluated from the point of 
	 view of fostering entrepreneurship. R&D subsidies, the main tool of 
	 Finnish innovation policy, may not be a very effective way of fostering 
	 entrepreneurship, compared to R&D tax credits of the type used in the 
	 Netherlands and Norway. The main reason for this is that the latter 
	 provide support in a more transparent way. The article ends with a 
	 discussion of what lessons the Finnish innovation policy offers to 
	 developing countries.
Classification-JEL: L53, O25, O38
Keywords: innovation policy, R&D subsidies, R&D tax credit, developing countries,
	 interim efficiency, market failure
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 050
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-050.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009050