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Economic specializa ion and di e si ica ion a
he coun y and egional le el: in oducing a
concep ual amewo k o s udy inno a ion policy
logics
Yuzhuo Cai, Roge No mann, Rómulo Pinhei o & Ma kku So a au a
To ci e his a icle: Yuzhuo Cai, Roge No mann, Rómulo Pinhei o & Ma kku So a au a (2018)
Economic specializa ion and di e si ica ion a he coun y and egional le el: in oducing a
concep ual amewo k o s udy inno a ion policy logics, Eu opean Planning S udies, 26:12,
2407-2426, DOI: 10.1080/09654313.2018.1529142
To link o his a icle: h ps://doi.o g/10.1080/09654313.2018.1529142
© 2018 The Au ho (s). Published by In o ma
UK Limi ed, ading as Taylo & F ancis
G oup
Published online: 09 Oc 2018.
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Economic specializa ion and di e sifica ion a he coun y and
egional le el: in oducing a concep ual amewo k o s udy
inno a ion policy logics
Yuzhuo Cai
a
, Roge No mann
b
, Rómulo Pinhei o
c
and Ma kku So a au a
a
a
Facul y o Managemen , Uni e si y o Tampe e, Tampe e, Finland;
b
Depa men o Wo king Li e and
Inno a ion, Uni e si y o Agde , Agde , No way;
c
Depa men o Poli ical Science and Managemen ,
Uni e si y o Agde , Agde , No way
ABSTRACT
While he e has been a sha ed unde s anding ha inno a ion policy
is abou ende ing ins i u ional change, he e has been an eme ging
in e es in iden i ying he ins i u ional logics unde lying inno a ion
policy. To da e, ew s udies ha e a emp ed o concep ualise hese
logics. This pape de elops a no el concep ual amewo k o
unde s anding inno a ion policy logics based on seminal
con ibu ions om o ganiza ional and economic heo y. The
amewo k dis inguishes ou logics, namely, specialized
exploi a ion, di e sified exploi a ion, specialized explo a ion, and
di e sified explo a ion. I is illus a ed in he empi ical analysis o
inno a ion policies and de elopmen on bo h na ional and
egional le els in No way and Finland. The findings e eal ha in
bo h coun ies he e is a mo emen owa ds inc easingly
di e sified inno a ion s a egies, despi e diffe ences in logics
unde pinning he policies.
ARTICLE HISTORY
Recei ed 6 No embe 2017
Re ised 24 Augus 2018
Accep ed 21 Sep embe 2018
KEYWORDS
Inno a ion policy;
ins i u ional logics;
specializa ion; di e sifica ion;
Finland; No way
The e has been a bu geoning in e es in b inging he ins i u ional heo y pe spec i e in o
s udies o inno a ion sys ems, ocusing, o example, on he ins i u ional con ex (Cai,
2015; Leydesdo ff,2002), agency and ins i u ional change (Bennewo h, Pinhei o, &
Ka lsen, 2017; Isaksen, Jakobsen, Njøs, & No mann, 2018; So a au a & Pulkkinen, 2011),
he dynamic in e play be ween ins i u ions and o ganiza ions (Edquis & Johnson, 1997),
and he effec s o ins i u ional cons ella ions on echnology inno a ion (Sánchez-Ba io-
luengo, 2014). All hese s udies imply ha he success o a gi en inno a ion sys em
depends on he app op ia e ins i u ional con ex . In mos cases he in oduc ion o an inno-
a ion sys em o en challenges adi ional legisla ions, no ms and ou ines locally.
Inno a ion policy is conside ed c ucial in de e mining he di ec ion o inno a ion
sys em de elopmen , and b inging abou ins i u ional change (Cai, Pugh, & Liu, 2017).
Ne e heless, ew s udies o da e ha e a emp ed o conduc ins i u ional analysis o inno-
a ion policy, especially om he ins i u ional logics pe spec i e. We belie e ha he
unde s anding o he unde lying ins i u ional logics o inno a ion policy (he ea e we
© 2018 The Au ho (s). Published by In o ma UK Limi ed, ading as Taylo & F ancis G oup
This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons A ibu ion-NonComme cial-NoDe i a i es License
(h p://c ea i ecommons.o g/licenses/by-nc-nd/4.0/), which pe mi s non-comme cial e-use, dis ibu ion, and ep oduc ion in any
medium, p o ided he o iginal wo k is p ope ly ci ed, and is no al e ed, ans o med, o buil upon in any way.
CONTACT Yuzhuo Cai yuzhuo.cai@u a.fiFacul y o Managemen , Uni e si y o Tampe e, Tampe e, Finland
EUROPEAN PLANNING STUDIES
2018, VOL. 26, NO. 12, 2407–2426
h ps://doi.o g/10.1080/09654313.2018.1529142
simply call i ‘inno a ion policy logics’) helps o accoun o he effec s o inno a ion policy
a he le el o he na ional inno a ion sys em. In an effo o add ess his esea ch gap, we
de elop a concep ual amewo k o iden i ying inno a ion policy logics and o discussing
hei mani es a ions a he inno a ion sys em le el. We demons a e he concep ual ame-
wo k by using wo No dic coun ies, Finland and No way, as cases in poin .
In he ea ly 1990s, Finland was among he fi s coun ies in he wo ld, i no he fi s , o
adop he concep o a na ional inno a ion sys em o ame i s science and echnology pol-
icies (Lund all, Johnson, Ande sen, & Dalum, 2011; Sha i , 2006), and i ope a ionalized i
in he spi i o eme ging concep ual amewo ks and ecommenda ions (see So a au a,
2012). Also in No way, inno a ion policy g adually eme ged as a policy concep wi h a
dis inc con en emphasizing he dis inc ion and ansi ion om linea o in e ac i e
modes o inno a ion. New concep s such as egional inno a ion sys em, lea ning
egions, lea ning economy, iple-helix eme ging in academic ci cles he la e pa o
he 1990s was soon he ea e mani es ed as expe imen al la e in mo e ins i u ionalized
inno a ion policy p og ammes such as clus e p og ammes and cen es o excellence.
Fu he , he wo cases p o ide con as ing inno a ion policy app oaches wi hin he
con ex o a sha ed No dic socio-economic wel a e model. In so doing, o cons uc
and es he concep ual amewo k, we add ess he ollowing esea ch ques ion: ‘Wha
a e he unde lying ins i u ional logics unde pinning na ional and egional inno a ion pol-
icies in No way and Finland?’The fi s pa o he a icle ocuses on policy a he na ional
le el, whe eas he mani es a ions and effec s obse ed, cons i u ing he second pa o he
a icle, a e assessed a he egional le el, by discussing wo case egions (one in each
coun y) ha illus a e he dilemmas and ade-offs acing policy make s.
1. Analy ical amewo k
1.1. Concep ual poin s o depa u e
Be o e ou analy ical amewo k is p esen ed, a cla ifica ion o wo key concep s (building
blocks o he amewo k) unde pinning he pape is wa an ed, namely: ins i u ional
logics and inno a ion policy.
1.2. Ins i u ional logics
The concep o ins i u ional logics was fi s in oduced by Al o d and F iedland (1985).
Tho n on (2004b) and colleagues ha e u he elabo a ed he concep and de eloped i
in o a mo e nuanced heo e ical app oach o conduc ins i u ional analysis The ins i-
u ional logics pe spec i e sees ins i u ionaliza ion as a p ocess o econciling diffe en
ins i u ional logics and d aws pa icula a en ion o ins i u ional compa ibili y and he
ole o agency in he p ocess o ins i u ional changes o he ins i u ionaliza ion o inno-
a ion. One pe asi e a gumen is ha mul iple and con ending logics p o ide he
dynamic o po en ial change in bo h o ganiza ions and socie ies (Tho n on, Ocasio, &
Lounsbu y, 2012).
D awing on F iedland and Al o d (1991) and Tho n on (2004a), Tho n on e al. (2012)
p opose se en ins i u ional logics o unde s and wes e n socie ies, namely; he s a e, he
ma ke , he amily, eligion, he p o essions, he co po a ion and he communi y. These
2408 Y. CAI ET AL.
logics ha e been la gely used in empi ical s udies on socie al and o ganiza ional issues in a
a ie y o fields (e.g. Cai & Zheng, 2016; G eenwood, Díaz, Li, & Lo en e, 2009), bu a ely
when i comes o inno a ion policy. In inno a ion s udies, schola s o en expand he ange
o ins i u ional logics o use o he kinds o logics, o ins ance, he h ee logics o ma ke ,
ne wo k and hie a chy as applied in he s udy by Laze , Me gel, Ziniel, Es e ling, and
Neblo (2011) on how decen alized sys ems deal wi h inno a ion, and/o he se en
logics aligned wi h he ideal T iple Helix sys em iden ified by Cai (2015). Despi e hei
diffe ences, all hese s udies end o sha e a basic unde s anding o ins i u ional logic as
‘a se o ma e ial p ac ices and symbolic cons uc ions’ ha cons i u e he o ganizing p in-
ciple o an ins i u ional o de and a e ‘a ailable o o ganisa ions and indi iduals o elab-
o a e’(F iedland & Al o d, 1991, p. 248).
Gi en he esea ch ques ion posed a he onse , in his pape we use key insigh s om
he ins i u ional logics pe spec i e as a means o in e p e ing he p e ailing a ionales
unde pinning inno a ion policy in No way and Finland. In bo h coun ies, he ins i-
u ional o de o he s a e is a he p e alen , ye na ional policy also akes in o conside -
a ion a a ie y o s akeholde in e es s and demands in he o m o a co po a e-plu alis ic
model (Olsen, 1988). These include, bu a e no limi ed o, fi ms, knowledge-in ensi e
o ganiza ions such as uni e si ies and egional ac o s ac oss he public and p i a e
sec o s (No mann & Pinhei o, 2018). Needless o say, and as is he case wi h mos Eu o-
pean na ions, No way and Finland ha e in ecen decades eso ed o bo h he ma ke as
well as ne wo k a angemen s as a means o add essing c i ical issues pe aining o
na ional and egional policy making –in he inno a ion ealm and elsewhe e.
1.3. Inno a ion policy
Inno a ion policy can gene ally be defined as a means h ough which go e nmen s a
diffe en le els se p io i ies and define app oaches o os e inno a ion and economic
g ow h (Howells, 2005). I builds upon p e ious policy a eas ha in oduced many o
he hemes which cha ac e ize i oday (Les e & So a au a, 2012; Nauwelea s &
Win jes, 2003). A ecen i e a ion wi hin inno a ion policy s udies is ha o ‘b oad
based inno a ion policy’(Edquis , Luukkonen, & So a au a, 2009) as a sys ema ic
phenomenon (Smi h, 2000). The o me imp o es upon adi ional R&D based
app oaches by inco po a ing non- echnological inno a ions as policy a ge s (A nkil, Jä -
ensi u, Koski, & Pii ainen, 2010). This, in u n, has led o a ecen inclina ion o comp e-
hend o unde s anding inno a ion policy as a ‘policy mix’, implying ‘a ocus on he
in e ac ions and in e dependencies be ween diffe en policies as hey affec he ex en o
which in ended policy ou comes a e achie ed’(Flanagan, Uya a, & La anja, 2011, p. 702).
In ecen decades, he e has been a g owing ealiza ion ha na ional inno a ion policies
mus be supplemen ed wi h egional inno a ion policies. Regional inno a ion policies a e
specifically aimed a c ea ing de elopmen ajec o ies based on specificcapabili ies,
cha ac e is ics and he needs o egional and local indus ies (Asheim e al., 2006; Töd ling
& T ippl, 2005). Regions may also ha e diffe en configu a ions o egional inno a ion
sys ems diffe ing in hei capaci y o ini ia e new indus ial g ow h pa hs (Isaksen &
T ippl, 2016). Fo ins ance, sma specializa ion policies (Fo ay, 2015; Fo ay, Da id, &
Hall, 2011) may be conside ed a policy s a egy aimed a de eloping egions based on
he ans o ma ion o he exis ing economic s uc u es h ough R&D and inno a ion
EUROPEAN PLANNING STUDIES 2409
h ough he specific p io i iza ion o gi en echnologies o indus ies based on in o med
assessmen s o egional needs and oppo uni ies.
Acknowledging he cha ac e is ics men ioned abo e, we concei e o inno a ion policies
‘as hose go e nmen al policies and p og ammes, on a ious le els and in diffe en fields,
which could ei he in en ionally o by coincidence enhance enabling condi ions o he
inno a ion sys ems o he egion’, (Cai e al., 2017, p. 240).
1.4. Inno a ion policy logics: owa ds a new amewo k
In his sec ion, we de elop an analy ical amewo k o unde s and he ins i u ional logics
unde pinning inno a ion policy in No way and Finland. Policy can be d i en by diffe en
se s o ins i u ional logics (Heiskanen, Ki isaa i, Lo io, & Mickwi z, 2009; Jø gensen, 2012;
Richa dson, 2006). Hence, ins i u ional logics a e he e unde s ood as ‘b oade cul u al
ules and belie s ha s uc u e cogni i e ideas and guide decision-making as well as he
beha iou o ac o s in he policy field’(Jø gensen, 2012, p. 247). When in es iga ing inno-
a ion policy design, we dis inguish be ween wo b oade s a egic app oaches. One
app oach ocuses on he balance be ween ‘specializa ion’and ‘di e sifica ion’, and he
o he on he in e play be ween ‘explo a ion’ e sus ‘exploi a ion’. When combined,
hese cons i u e ou quad an s ep esen ing ou dis inc inno a ion policy logics, each
wi h hei own a ionale and in ended and unin ended effec s.
The s a egies o explo a ion and exploi a ion a e based on James G. Ma ch (1991), who
s esses he impo ance o achie ing a balance be ween he explo a ion o new possibili ies,
h ough isk- aking, play, disco e y, inno a ion, e c., and he exploi a ion o old ce ain ies
in he o m o efinemen , choice, selec ion, implemen a ion, e c., when discussing he
c i ical aspec o o ganiza ional adap a ion o changing eali ies in he con ex o lea ning.
Al hough Ma ch’s(1991) ocus is on he o ganiza ional le el, he wo logics o explo a ion
and exploi a ion espec i ely eflec diffe en aspec s o he ‘adap abili y’and ‘lea ning’
na u e o inno a ion policy design (Edquis , 2011). Acco ding o James G. Ma ch
(1991, p. 71).
‘Adap i e sys ems ha engage in explo a ion o he exclusion o exploi a ion a e likely
o find ha hey suffe he cos s o expe imen a ion wi hou gaining many o i s benefi s’
(Ma ch, 1991,p. 71). They exhibi oo many unde eloped new ideas and oo li le dis inc-
i e compe ence. Con e sely, sys ems ha engage in exploi a ion o he exclusion o
explo a ion a e likely o find hemsel es apped in subop imal s able equilib ia. As a
esul , main aining an app op ia e balance be ween explo a ion and exploi a ion is a
p ima y ac o in sys em su i al and p ospe i y.
The s a egies o specializa ion and di e sifica ion eflec diffe en concep ions o he
op imal le el a which o le e age esou ces and boos economic g ow h (Imbs & Wac-
zia g, 2003; Kaulich, 2012a;Neffke, Henning, & Boschma, 2011). The a ionale unde lying
indus ial specializa ion mainly ollows he heo y o Rica do (1971), which conside s ha
when a coun y o egion specializes in ce ain goods and se ices in which hey ha e com-
pa a i e ad an age by way o esou ce endowmen s and/o supe io alue added ech-
niques, he alloca ion o esou ces becomes mo e efficien , hus enabling o e all wel a e
imp o emen s (Kaulich, 2012a; K ugman, Obs eld, & Meli z, 2015). The assump ion
unde pinning (indus ial) di e sifica ion is mainly based on he wo k o Nobel lau ea e
Simon Kuzne s (1971, p. 87), who s a es ha : ‘[a] coun y’s economic g ow h may be
2410 Y. CAI ET AL.

defined as a long- e m ise in capaci y o supply inc easingly di e se economic goods o i s
popula ion […]’(Figu e 1).
The ou ypes o inno a ion policy logics a e pe mea ed in specific a ionales (means-
ends a ionali y) and esul in o mul iple effec s on inno a ion p ac ices, bo h in ended
and unin ended (Table 1).
2. Inno a ion policy logics in No way and Finland
In his sec ion we p o ide empi ical insigh s on how he dominan inno a ion policy logics
in No way and Finland ha e mani es ed hemsel es bo h a he na ional and egional
Figu e 1. Ins i u ional logics in inno a ion policy. Sou ce: au ho s, applying (Kaulich, 2012b; Ma ch,
1991; Rica do, 1971).
Table 1. Inno a ion policy logics: a ionales and effec s.
Inno a ion
policy logics Ra ionale Effec s
Specialized
exploi a ion
Excel a making use o exis ing esou ces,
knowledge and echnology
In ended: Con inui y. Unin ended: Lock-in
(concen a ion)
Di e sified
exploi a ion
Excel a making use o a mul iplici y o ela ed
esou ces, knowledge and echnology
In ended: Mode a e le els o change (g adual).
Unin ended: Reduced esilience
Specialized
explo a ion
Excel a in oducing new knowledge and
echnology a ound selec ed a eas
In ended: Mode a e o high le els o change (new and
old elemen s combined). Unin ended: Hyb idiza ion
Di e sified
explo a ion
Excel a in oducing new elemen s ac oss a
mul iplici y o knowledge and echnology
a eas
In ended: Radical change (dis up ion wi h pas ).
Unin ended: Lack o ocus (dispe sion)
Sou ce: Au ho s own.
EUROPEAN PLANNING STUDIES 2411
le els. No way has o e he las ou decades de eloped in o one o he mos specialized
economies in he OECD a ea, while Finland has de eloped in o one o he mos di e sified
economies. In bo h 2000 and 2010 No way was he second mos specialized economy in
he OECD a ea, while Finland anked among he mos di e sified ones (OECD, 2013).
This pic u e has no eme ged a andom, bu i is a consequence o bo h delibe a e poli ical
p ocess and ma ke exploi a ion o eme ging oppo uni ies. Impo an o unde s anding
he inno a ion policy logics in he wo coun ies is hei indus ial s uc u e. Finland and
No way ep esen almos opposi e ends o he spec um among he op ie ad anced
OECD economies. Whe eas No way is among he op en expo e s o p ima y goods
in he wo ld, Finland is a op en expo e o manu ac u ed goods (OECD, 2013).
Finland p oduces a wide ange o manu ac u ed goods o he in e na ional ma ke
place, while No way is one o he wo ld’s leading p oduce s o pe oleum and gas. In
2014, close o 60 pe cen o No wegian expo s we e linked o pe oleum- ela ed p oduc s
(Simoes & Hidalgo, 2017). As shown in mo e de ail below, he e is a dis inc inno a ion
policy logic d i ing and ein o cing a specialized economy in No way in con as o a mo e
di e sified economy in Finland. This is appa en i we iew how he wo coun ies u ilize
hei Resea ch and De elopmen (R&D) esou ces (Figu e 2).
Figu e 2 shows ha in Finland la ge fi ms, pa icula ly hose in non- esou ces based
and high- ech manu ac u ing indus ies, con ibu e significan ly o domes ic R&D expen-
di u es. By con as , se ices, p ima y and esou ce based indus ies and SMEs a e he
main con ibu o s o No way’s G oss domes ic expendi u e on R&D (GERD). In 2014,
Figu e 2. S uc u al composi ion o business R&D –in 2013 (IPP, 2017).
2412 Y. CAI ET AL.
GERD as a pe cen age o he G oss Domes ic P oduc (GDP) was 1.71 in No way and
almos wice ha (3.17) in Finland. Be ween 2009 and 2014, GERD’s annual g ow h
a e was + 2.3 pe cen o No way and -2.78 o Finland. As ega ds publicly financed
GERD as a pe cen age o GDP, in 2013 No way had 0.77 while he alue o Finland
was -0.5; wi h he g ow h a e in he pe iod 2008–2013 being + 2.38 pe cen o No way
and -0.5 pe cen o Finland (IPP, 2017).
The da a also e eals an o e all decline in he g ow h o R&D in es men s in bo h
coun ies. In 2012 No way spen oughly NOK 48 billion (equi alen o 4.8 billion
Eu os as o 18 July 2018,) on R&D in es men s, wi h he business sec o accoun ing o
44 pe cen o he o al and he highe educa ion and he ins i u e sec o s con ibu ing
wi h oughly 25% each. In 2013, R&D expendi u e in Finland o alled 6.7 billion Eu os,
wi h he sha e o he business sec o being 69% (S a is ics Finland, 2017), 25% mo e
han in No way. Expendi u e peaked in 2011 (Eu o 7.2 billion in o al), and has been
dec easing since, below Eu o 6 billion du ing 2016. The da a shows ha a e he 2008
financial c isis bo h he public and he p i a e sec o s in Finland expe ienced a d ama ic
cu in R&D expendi u es (The Resea ch Council o No way, 2015).
Following he 2008 c isis, R&D expendi u es in No way inc eased, bu almos exclu-
si ely in he public sec o . E en a e he cu s, R&D expendi u es in Finland a e wice
as la ge as in No way. This is indica i e in No wegian indus y o a lack o eliance on
o mal R&D o s imula ing in-house inno a ion (Fage be g, Mowe y, & Ve spagen,
2009). I is also illus a i e o a mo e gene al pic u e whe e, as a No he n Eu opean
economy, Finland is cha ac e ized by an indus ial s uc u e domina ed by high and
medium-high echnologies and wi h a s ong le el o specializa ion wi hin ICT. In
Finland, he his o ical ole o Nokia has been c ucial in economic de elopmen and
R&D expendi u es in gene al and specifically in ICT. Du ing i s heyday in 2001, Nokia
held a 40% sha e o he wo ld’s mobile phone ma ke , accoun ing o 4% o Finnish
GDP. Fu he , Nokia alone accoun ed o app oxima ely one hi d o he o al Finnish
R&D expendi u e and o oughly hal o business R&D (Ali-Y kkö & He mans, 2002).
As Ali-Y kkö and He mans (2002) obse e, i Nokia’s sha e we e emo ed om he
na ional figu es, Finland’s R&D spending in 2001 would ha e been 2.4% o GDP; only
sligh ly abo e he Eu opean a e age.
R&D expendi u e migh no be synonymous wi h inno a ion ac i i y. This can be seen
in he case o Finland and also Sweden. Since he 1990s wo o he s onges so-called
‘R&D na ions’in he wo ld, Sweden and Finland, ha e in es ed hea ily in R&D, bu
ha e shown ai ly low le els o comme cially success ul inno a ions. This phenomenon
is known as he ‘No dic pa adox’(Bi a d, Edquis , Hommen, & Richne, 2008). Fo i s
pa , No way ep esen s a si ua ion eminiscen o a ‘ e e sed No dic pa adox’wi h
s ong GDP g ow h bu significan ly lowe in es men s in R&D, a behind Finland and
he a e age o bo h he EU and OECD a eas. The main eason o No way’s e e sed
No dic pa adox is ha No way’s indus ial s uc u e is cha ac e ized by high alue-
added in indus ies wi h low R&D in ensi y, mos no ably a ound na u al esou ces
such as gas and oil as well as fishe ies (Fo sknings åde , 2014). In con as o i s No dic
coun e pa s, No way lacks leading in e na ional high- ech fi ms. Some o he leading
Finnish fi ms and indus ial sec o s a e acknowledged o hei inno a i eness and
global compe i i eness.
EUROPEAN PLANNING STUDIES 2413
Mo e gene ally, some o he diffe ences be ween he Finnish and No wegian economies
a e illus a i e o some o he ea u es associa ed wi h he STI (Science, Technology, Inno-
a ion) and DUI (Doing, Using, In e ac ing) modes o inno a ion espec . STI is ‘explici ’
(e.g. scien ific) knowledge, capable o being w i en down and hus ans e ed easily om
one con ex o ano he . Following Jä inen (2007), STI and DUI modes co esponds o an
a emp , a he na ional policy le el, o finding an adequa e balance be ween o mal R&D
p ocesses o p oduce explici and codified knowledge and p ocesses ocusing on lea ning
o m in o mal in e ac ion wi hin and be ween fi ms esul ing in compe ence de elopmen
(Isaksen & Ka lsen, 2010; Jä inen, 2007). No way’s inno a ion app oach elies ypically
mo e on DUI (Fage be g e al., 2009) when compa ed o Finland which is mo e STI
o ien ed (Lemola, 2007).
No way and Finland a e among he leading na ions in e ms o human esou ces, wi h
he p opo ion o he popula ion wi h a highe educa ion deg ee being abo e a e age o
bo h he OECD and he EU (OECD, 2017a). Wha is mo e, No way has a high and ising
p opo ion o esea che s in he popula ion, and in Finland he sha e o R&D employmen
has o some ime been he highes among he OECD coun ies (High- ech s a is ics –
employmen , 2016). In ecen decades bo h coun ies ha e expe ienced a ma ked
g ow h in he numbe o doc o a es (The Resea ch Council o No way, 2015). Recen
s udies show ha No wegian adul s ha e a ai ly high le el o basic skills (OECD,
2014), ye he e is s ill a diffe ence when compa ed o Finland, whe e he adul popula ion
is a he op ac oss all ca ego ies; eading, w i ing and p oblem sol ing (The Resea ch
Council o No way, 2015).
In in e na ional compa isons o inno a ion (IUS/EIS), No way ypically anks below
among he leading inno a ion coun ies in Eu ope, alongside Denma k, Ge many and
Sweden. The eason o his is as showed in Figu e 1, ela ed o he indus ial s uc u e
in No way whe e No wegian fi ms ypically a e less esea ch in ensi e and on a e age
mo e cha ac e ized by DUI modes o inno a ion han hei Finnish coun e pa s. No we-
gian fi ms a e ypically on a e age only sligh ly less inno a i e han he Finnish fi ms bu
much less R&D-in ensi e, a endency ha is s eng hen by Finland ha ing mo e la ge
fi ms wi h o mal R&D-capaci y han No way.
3. Dominan inno a ion policy logics
3.1. No way: in sea ch o a di e sifica ion app oach
In he 1990s, No way was al eady highly specialized in he pe oleum sec o . Domes ic
inno a ion policy measu es since hen seem, by and la ge, o ha e s eng hened and
ein o ced exis ing specializa ions (‘specialised exploi a ion logic’). An indica ion o his
is ha basic esea ch effo s a e s ill concen a ed a ound na ional indus ial specializ-
a ions; economic a eas whe e No way is s onges indus ially. When we compa e scien-
ific publica ions om No way o hose p oduced in o he coun ies, we can obse e a e y
s ong specializa ion in geoscience and ela ed subjec s (The Resea ch Council o No way,
2015), which is closely associa ed wi h oil and gas ope a ions. This eflec s an inno a ion
policy o ien a ion aimed a exploi ing exis ing esou ces and knowledge bases and, hus
has he di ec effec o inc easing he coun y’s o e all economic specializa ion p ofile.
The de elopmen o he na ional inno a ion sys em in No way has he e o e been
2414 Y. CAI ET AL.
specializa ion and/o ex e nal shocks like ene gy c isis, company ailu es, e c. (Boschma,
2015). This na ional pos u e could, in pa , be a unc ion o he s a egic emphasis ac oss
Eu ope (EU le el) owa ds a s a egy o ‘sma specialisa ion’(Eu opean Commission,
2014), which ends o p io i ize en ep eneu ial disco e y p ocesses and hus sma di e -
sifica ion (Männis ö, 2015).
5. Conclusion
Thiss udyadds o heli e a u eoninno a ionpoliciesbyspecifically ocusingonins i u ional
logicsp o idingpolicieswi ha meaninganddi ec ion.I in oducesa s ylizedconcep ual a-
mewo k o s udy he ins i u ional logics unde lying inno a ion policies. Con e sely, i con-
ibu es o he ins i u ional logics li e a u e by explo ing he impo an bu unde s udied
link be ween ins i u ional logics and inno a ion policies. We join ea lie s udies ha call
o a mo e nuanced unde s anding o di e sifica ion/specializa ion, policy con en s and
policy p ocesses as well as pa h de elopmen (Flanagan e al., 2011; Isaksen & T ippl, 2016).
Mos impo an ly, his s udy links ins i u ions in o he li e a u e o na ional and
egional inno a ion policies ha has been c i icized o no being able o ope a ionalize
ins i u ions in a obus manne . This is impo an , as, in inno a ion s udies, ins i u ions
a e mo e o en han no s udied mo e ins umen ally han wha is he case in sociology
o poli ical sciences, o example. This may be a combined esul o mo e p agma ic ambi-
ions and he abs ac na u e o ins i u ional heo y (Rod íguez-Pose, 2013). The concep-
ual amewo k in oduced in his pape may p o e use ul in u u e endea ou s o shed
addi ional ligh on he ways ins i u ions ame he policy logics, and how, in u n, inno-
a ion policy is cons ained and/o enabled by ins i u ional logics. I can also se e as a
use ul analy ical ool o compa e inno a ion policies and p ac ices ac oss na ions and
egions. Howe e , one should be cau ious when applying he amewo k in empi ical
analysis o a oid simply associa ing one specific inno a ion policy logic wi h a coun y
o egion in a gi en pe iod. This could indeed be he ac , bu in many cases he e a e
mixed and e en compe ing logics unde lying he deba es o inno a ion policymaking as
demons a ed in he pape , especial in he case o Finland.
No e
1. In 2018 he Finnish T ade P omo ion O ganiza ion (Finp o) and Tekes we e me ged, and he
new o ganiza ion was named Business Finland.
Acknowledgemen s
Ea lie e sions o his pape we e p esen ed a he 4S Annual Mee ing, S&T policies: he e olu ion
o agendas and o go e nance p ac ices, Den e USA, in No embe 2015 and he EU-SPRI Con-
e ence: Explo ing New A enues o Inno a ion and Resea ch Policies, Lund, Sweden, in June
2016. We a e g a e ul o all commen s and eedback.
Disclosu e s a emen
No po en ial conflic o in e es was epo ed by he au ho s.
EUROPEAN PLANNING STUDIES 2421

Funding
This esea ch is a pa o he p ojec ‘Explo ing he ole o VRI in egional inno a ion sys em o -
ma ion and new pa h de elopmen ’ unded by he Resea ch Council o No way [g an numbe
233788] in he P og amme o Regional R&D and Inno a ion (VRI ). Wi h ega d o Finland,
his wo k was also suppo ed by a g an om he No dic G een G ow h Resea ch and Inno a ion
P og amme in coope a ion wi h No dFo sk, No dic Inno a ion and No dic Ene gy Resea ch [g an
numbe 83130].
ORCID
Yuzhuo Cai h p://o cid.o g/0000-0002-7934-3828
Ma kku So a au a h p://o cid.o g/0000-0001-6603-6370
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