There is increasing awareness in Europe about the importance of High Growth Innovative Enterprise (HGIEs) and policies for HGIEs. The examples from Poland and France show that countries are developing related policies; they may however also show that in many countries the development of such policies is in a fairly early stage. Venture capital from funds is an important source of finance for HGIEs.
Demand‐side policies are those that can induce investment in technologies by enlarging markets for them. Rising expectations about future demand for new technologies increase the incentives for investments in innovation by enlarging payoffs to successful innovations. This paper presents several success stories.
Innovative growth firms thus constitute a very important target for policy action, particularly at times of economic downturn such as the current one. In particular, EU member countries experiencing severe economic distress are well advised to consider how to best harness the potential of this category of firms. The paper observed that while supply-side policies and support mechanisms are relatively well known, much less is known about demand-side policies and support mechanisms.
Policies that improve the performance of the science base are those that both maximise inputs and improve the efficiency of the transformation process. Moreover, given the need for the science base to link effectively with other subsystems of national and international innovation systems in order to improve overall system performance, policies facilitating such linkages are also needed. The paper discussed the policy steps needed to improve the performance of the science base under five main dimensions.
The report covers a range of topics, especially the treatment of risk in the design and implementation of demand-side policies; the relevance of priority setting; and the role of indicators and evaluation tools and techniques. Evidence presented indicated that the demand-side interventions mostly used by Member States are the public procurement of innovation and awareness raising, whereas regulation and tax incentives are less frequently used.