ABSTRACT
State-owned enterprises (SOEs) have been a key driver of industrial and technological development, as the experience of many countries shows. The main aim of this chapter is to analyse the role that SOEs can play as innovation inducers. This chapter provides a theoretical approach to study the role of SOEs, based on the innovation system framework. The research is focused on three main issues: the role that SOEs can play for innovation from the theoretical perspective, the several ways through which SOEs could affect and drive innovation, and the changes in the innovation behaviour after privatization of former SOEs. Privatization implies a change in firms’ aims and management strategies, which could affect their innovation behaviour. SOEs could contribute to innovation through two main ways: carrying out R&D activities and acting as pioneers in new high-technology activities.
