Public Financial Support for Commercial Innovation

Abstract

The Europe and Central Asia (ECA) Knowledge Economy Study aims to offer ECA policy makers options to increase and maintain productivity and growth by creating an environment conducive to the application of knowledge in the economy via innovation and learning. The tradition of excellence in learning and basic research in several ECA countries provides some basis for hope that commercial innovation could be adopted and built "on the shoulders" of the past. Translating this research foundation into economically productive commercial applications, however, remains a critical missing link in ECA countries. Against that background, this study focuses on public policies for building institutions and creating an incentives framework for the support of commercial innovation. Basic research policies are outside our scope.

Keywords: innovation, technology, transition, knowledge economy, public support

JEL Classification: 03