Introduction to "Innovation and Public Policy"

Innovation is often seen as a central force for increasing economic prosperity and improving health. This volume collects new insights on innovation policy. The chapters study first-order policy mechanisms and actionable ideas that can fuel scientific and technological advance. Each analysis is based in the latest empirical evidence, understood within the context of existing policies and institutions.
In this chapter, we present an overview of the chapters, organized around five subjects. The first is the social returns to innovation investment, which is central to the case for public support. The second subject is human capital, which can constrain the nation’s innovative capacity. The third subject is scientific grant funding, which occurs mostly outside markets and is closely tied to government financing. The fourth subject is tax policy, which can create incentives for and against innovation investment in the private sector. The final subject is entrepreneurship and ways in which government policy supports new venture creation.