Two Sides of the Same Coin: Why and How Equitable Distribution and Representation Matter for Innovation Advancing the Social Good in Real Places

Abstract

The broad social desirability of innovation is increasingly being questioned, particularly in rich industrially advanced nations. While there is much research on the distributional consequences of innovation-led growth, societal representation in the production of innovation has received much less attention despite being just as vital when aiming to advance the social good. By drawing on Hanna F. Pitkin's work on democratic representation, we distinguish different forms of representation and assess when it is truly meaningful in the production of innovation. We argue that the equitable representation, which requires both 'descriptive' and 'substantive' forms, is not only normatively but also functionally desirable. Among other things, it can enhance product-market fit and technology adoption, boosting business performance and growth. It can also lead to a fairer mid-to long-term distribution of innovation rents by expanding the base of innovators. Therefore, we view equitable representation and distribution as two sides of the same coin; that is, innovation-led growth benefiting the social good in Real Places. We introduce 'Representation-Sensitive Innovation Policies' (RSIPs) as targeted policy tools to benefit innovation-led growth and, at the same time, facilitate more equitable representation.

Keywords: innovation, innovation systems, diversity, representation, inequality