The role of the State in fostering innovation activity: case studies of the USA and Germany

Vol. 39 No. 4 (2019)

Oct-Dec / 2019
Published October 1, 2019
PDF-English
PDF-English

How to Cite

Gordon, José Luis. 2019. “The Role of the State in Fostering Innovation Activity: Case Studies of the USA and Germany”. Brazilian Journal of Political Economy 39 (4):571-90. https://doi.org/10.1590/0101-31572019-2899.

The role of the State in fostering innovation activity: case studies of the USA and Germany

José Luis Gordon
Diretor de Planejamento e Gestão da EMBRAPII – Empresa Brasileira de Pesquisa e Inovação Industrial, Brasília/DF, Brasil.
Brazilian Journal of Political Economy, Vol. 39 No. 4 (2019), Oct-Dec / 2019, Pages 571-590

Abstract

The present study analyzed the role of the State in fostering innovation in the USA and Germany. It was argued that governments in these countries play an active role in innovation, but each one operates with dissimilar objectives and tools, to stimulate and induce innovation activity in companies. Some specific cases of innovation policies in each country were analyzed to demonstrate the performance of the public power in different contexts. It was concluded that innovation policy is flexible and adaptable to each context, but the active role of the State stands out in both countries. 

JEL Classification: E60; F13; H20.


Keywords: Export support policies implicit real exchange rate exports panel data