Dr Christian Sandstrom and Dr Karl Wennberg discuss their new book, Bureaucrats or Markets in Innovation Policy? at a digital seminar hosted by Institute of Economic Affairs.
Based on a major interdisciplinary research program with a special focus on Sweden, paired with international research, Dr Sandstrom and Dr Wennberg explain how targeted interventions and firm subsidies do not have the intended effects but instead creates policy failures, government waste and rent-seeking. Instead, they argue that innovation policy should focus on supplying the right competencies and on improving the institutions of the market economy and the general conditions for enterprise. Markets rather than bureaucrats are decisive for innovation, industrial development and growth.
Watch their presentation here: