ABSTRACT
Following the discussion of employment in Chapter 17, the central issue which is addressed in this chapter is the use of innovation, technology and other complementary policies to support the goal of environmentally sustainable development. Innovation and technology policy have an essential role in achieving this goal, because of the need for innovations to replace current unsustainable production methods and consumption patterns and because of the need for the more rapid development and diffusion of a wide range of alternative more environmentally friendly technologies. There are three additional reasons why focusing on environmental issues is a useful way of highlighting the particular policy challenges raised by technological change and innovation.
