GOVERNMENT SUPPORT OF MANUFACTURING INNOVATIONS - 2 COUNTRY-LEVEL CASE-STUDIES

It is generally recognized that some measure of state support for innovation is necessary in order to preserve a position of international competitiveness. During the 1980's, governments of most advanced industrial economies introduced a range of programs designed to facilitate the introduction of advanced manufacturing technologies. This paper reviews the theoretical underpinnings of these policies from the literature on the transfer of technology and outlines the pattern of policy evolution that has occurred as policymakers have become more aware of the determinants of the diffusion process. The paper illustrates the principal features of typical government programs in Europe with case studies from the United Kingdom and (West) Germany. These cases are presented as a means of illustrating how different governments have translated basically similar principles into alternative policy mechanisms for promoting the transfer of technology. The paper argues for the continuing need for government support for small- and medium-sized enterprises and for firms in more traditional sectors and concludes with some reflections on lessons learned during the 1980's that might usefully inform future policy development into the 1990's.