Government support of manufacturing innovations: two 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 1980s, governments of the most advanced industrial economies introduced a range of programs designed to facilitate the introduction of advanced manufacturing technologies. The theoretical underpinnings of these policies from the literature on the transfer of technology are reviewed and the pattern of policy evolution that has occurred as policymakers have become more aware of the determinants of the diffusion process are outlined. The principal features of typical government programs in Europe are illustrated with case studies from the United Kingdom and (West) Germany. It is argued that the need for continuing government support for small- and medium-size enterprises and for firms in more traditional sectors is growing