For you what are the best regulatory mechanisms for achieving and maintaining innovative economic growth of the country?
Creation of legal conditions for economic development.
Maintain law and order, build up infrastructure such as education, highways and utilities allow private initiative to take the lead.
Namiq Abbasov
I am not an expert in macro level innovation policy. Your best bet for "generic best practices" is to look at a couple of studies. The World Bank's "Doing Business Report" will give you a sense of policy or regulatory innovations that 190 economies embark on, to make it easier for firms to set up and do business within their countries.
Equally, WEF's Global Competitiveness Report details some regulatory/policy reforms that may make countries competitive. The GCR and its Global Competitiveness Index measures countries on two (2) components of innovation. I have attached both reports for ease of reference.
You may also want to look at Michael Porter's work on "Clusters of Innovation" as well as his "Diamond Framework" to help synthesise your thoughts and ideas.
Apart from the above, they key underlying principle to bear in mind is that, in the end regulation either incentivises suppliers (firms) to innovate or consumers to be sophisticated and demand "innovative" products.
If this is a research topic you are looking at, you may want to narrow your focus to a specific trend such as the "circular economy" or an industry sector, ie.., materials sector GICS 15 or energy, GICS 10.
Frankly, you could look at almost any industry sector. In my part of the world in financial services, GICS 40, as an example, the regulatory thrust aims to "increase penetration of financial services to the poor" and also aims to incentivise financial services players to develop new and "fit for purpose" financial instruments for small businesses.
It is easy to conclude that, in advanced high tech countries, with large, powerful firms, uncertainties would no longer be a major concern. After all, in the United States today, there are more than 16 000 firms that currently operate their own industrial research labs, and there are at least 20 firms that have annual R&D budgets in excess of USD 1 billion. In fact, when American manufacturing firms are ranked by the size of their R&D budgets, the top 20 firms spent a total of USD 54 billion on R&D in the year 2000. Surely, you might think, such firms are no longer preoccupied with nagging problems flowing from uncertainties and their attendant financial risks ( Rosenberg , 2004: p2)
I think there is no fixed set of mechanisms for achieving and maintaining innovative growth, the set has got to be dynamic, run by an operations team, and adaptable to the changing situation on the ground. Governance factors would be the keys in regulating and maintaining innovative growth.
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