Is Responsible Policy-Making a Prerequisite for Successful Organizational Strategies for Innovation?

The contemporary environment requires policy-makers to act responsible. However, existing research does not provide sufficiently clear answers to the question whether responsible policy-making is important for a country’s prosperity, growth and entrepreneurship. In existing literature, there is no explicit agreement on which aspects of institutional environment are more important than others for continuous improvement and innovativeness, or even which institutions belong to national systems of innovation. Therefore, the paper aims to reveal whether responsible policy-making fosters the emergence of competitive organizational strategies for innovation. The paper is original because of several aspects. First, different innovation strategies are interrelated with firm performance and national economic-institutional contexts. Second, the paper is original in its attempt to focus on responsibility within the relationship between policy-making and innovativeness. Ultimately, the research covers 60 innovation variables across 127,674 organizations from 12 core and 19 additional sectors and from 16 European economies, as well as 368 institutional variables across 123 countries, thus pointing to the impressive scope of the research.

Keywords:

innovation strategy , institutions , policy-making , responsibility