On the Informational Basis of Regional Innovation Policy: From Growth to Capabilities

The shift from the linear to the innovation system-based approach has resulted in the emergence of differentiated regional innovation policy. However, certain common presumptions bind these location-specific policies together. The set of information that is used to design these policies and the set of information excluded are fairly similar. The theoretical sections of this paper provide a critical review on the informational basis of regional innovation policy by contrasting the interpretations of the welfare effects of technological change in the utilitarian tradition and in Sen's capability approach. The empirical sections analyse the correspondence of the innovation capacity and welfare (well-being) situation in a Hungarian micro-regional data set. We conclude that the conventional informational basis of innovation policy is too narrow from a welfare perspective. Not only should the differences in the innovation systems, but also the peculiarities of the region's welfare situation be considered during the design of innovation policy.