CHAPTER FOUR
HOW NONMARKET FACTORS AFFECT INNOVATION
What are the true drivers of innovation? How do nonmarket factors affect these drivers? What actions can nonmarket players take to increase the pace of innovation? What actions are likely to impede innovation? Which will have no effect? How can we identify circumstances in which no intervention is necessary, in which proper intervention can be successful, and in which intervention is likely to have little impact?
This chapter continues to use the telecommunications industry to develop the motivation/ability framework introduced in chapter 1 and to explain how to assess the impact of nonmarket intervention on innovation. 1
One of the stated goals of the U.S. government is to promote the ...
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