The influence of innovation and education policy on inclusive growth

This chapter deals with the main trends of change in innovation and education policies followed by the four models of growth and inequality from the 1980s onwards. Due to international competitive pressures and new technology development, innovation becomes crucial in determining the competitiveness of national economies, while education policy is fundamental in improving workforce skills. The chapter focuses on the role of national governments in sustaining innovation through various policy instruments. The chapter reveals that the countries under study followed quite similar policy developments. Two reasons explain this result. First, advanced economies faced the same exogenous pressures that lead to profound changes in their systems of innovation and educational policies. In particular, European countries dealt with the constitution of the European Union and the subsequent relocation of political sovereignty in the field of industrial policy. Second, we found a straightforward process of mimetic isomorphism where successful intervention by pioneering countries becomes standard response for latecomers. As a result, countries show similar patterns and timing in policy implementation. However, convergent trends are moderated by countries’ specificities that mediate the effects of policy change on national systems of innovation.