ABSTRACT
The role of the state in innovation, an area which is often regarded as a significant weakness in understanding systems of innovation. However, the state has long had a key role in innovation processes through its direct investment and support of innovations as well as the creation of the framework within which innovation occurs as a result of its policies, institutions, and regulatory functions. The chapter is divided into three main sections. The first examines the nature of the state and discusses how it is of significance to innovation. The second section discusses the institutional dimensions of innovation. Finally, the third section highlights the significance of multilayered governance for innovation systems. A wide range of public policy instruments are available to the state to achieve its goals with respect to innovation. Nevertheless, the use of such mechanisms is noted as changing in light of different theoretical perspectives on the best means for the state to leverage its innovation policies. An innovation systems framework is used to illustrate the state’s role.
