The Role of Demand on Innovation: Evidence from a Resource Rich Economy

25 Pages Posted: 16 May 2017

See all articles by Elif Bascavusoglu-Moreau

Elif Bascavusoglu-Moreau

University of Cambridge - Centre for Business Research (CBR)

Sami Mahroum

INSEAD Abu Dhabi Campus

Date Written: May 16, 2017

Abstract

As the demand-pull theories of innovation are making their come back, there is also increasing interest in the role of government demand in stimulating innovation. Governments, especially in OECD countries, have announced initiatives and reforms aimed at mobilising the use of procurement to support competitiveness and innovation (OECD, 2013). In the past 10 years, the oil and gas rich countries of the Gulf Cooperation Council have earmarked substantial financial resources to support the development of domestic innovation systems. This paper draws on the Abu Dhabi Innovation Survey to discern the impact of demand on innovation, particularly that of government demand. With a few exceptions (Aschhoff and Sofka 2009; Slavtchev and Wiederhold 2012; Guerzoni and Raiteri 2015), most of the empirical evidence on the effect of government demand on innovation is based on case studies (Edler 2013, Edquist and Zabala-Iturriagagoitia 2012, 2014; Edquist 2015; Georghiou et al. 2014;). This paper therefore provides two unique insights, firstly, insights into an innovation survey from the Middle East and, secondly, insights into the influence of substantial domestic albeit “un-articulated” demand.

Keywords: Government Demand, Innovation Policy, Resource-rich Countries

Suggested Citation

Bascavusoglu-Moreau, Elif and Mahroum, Sami, The Role of Demand on Innovation: Evidence from a Resource Rich Economy (May 16, 2017). INSEAD Working Paper No. 2017/31/IIPI. Available at SSRN: https://ssrn.com/abstract=2968932 or http://dx.doi.org/10.2139/ssrn.2968932

Elif Bascavusoglu-Moreau

University of Cambridge - Centre for Business Research (CBR) ( email )

Top Floor, Judge Business School Building
Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Sami Mahroum (Contact Author)

INSEAD Abu Dhabi Campus ( email )

P.O. Box 48049
Abu Dhabi
United Arab Emirates

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