SOTA Review

The role of policy mix in driving business innovation.


Associated Themes
  • Innovation

Businesses often receive a mix of different innovation policy instruments, a policy mix, to support their innovation activities. For example, they may receive a mix of R&D grants and R&D tax credits. What does the evidence suggest about policy mix’s role in driving business innovation? SOTA studies on the impact of different policy mixes present a complex picture. Internationally, findings range from an increase of 34 percent in business innovation associated with some policy mixes to a decrease in business innovation of 26 percent associated with other mixes.