Title: The dynamics of innovation

Authors: Alain Bienayme

Addresses: Professor of Industrial Economics, Universite de Paris-IX Dauphine, Place du Marechal de Lattre de Tassigny, 75775 Paris Cedex 16, France

Abstract: From a research report carried out for the French Commissariat General du Plan on the connection between business strategies, French industrial economic policy and the growth of international production, we have chosen three themes: the results brought about by exports, the production programmes of multinational companies faced with the problems of over-capacity, and the dynamics of innovation. This paper examines the third of these themes. Having restated why, today, innovation conditions our growth and why the analysis of the economic parameters of innovation only partially account for this phenomenon, this study throws light on the repercussions of innovation within the organization of a business and on its strategies before proposing the concept of an ||innovation multiplier|| based on its resultant ||knock-on|| effects. The result is a critique of current concepts of public subsidization for innovation and proposals for reform of French industrial policy. (This paper is a translation of an original in French: ||Dynamique de innovation|| (1985) Chroniques d|Actualites de la SEDEIS, 141 Boulevard Hausmann, 75008, Paris.)

Keywords: France; government policy; innovation dynamics; research and development; R&D; business strategy; international production; industrial policy.

DOI: 10.1504/IJTM.1986.026103

International Journal of Technology Management, 1986 Vol.1 No.1/2, pp.133 - 159

Published online: 27 May 2009 *

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