Innovation which does not need R&D: suggestions for a technological innovation policy based on dissemination and supply

Abstract

In this article we propose to analyze the foundations for an innovation policy in Portugal. The core argument is that what has been lacking is an innovation policy directed at satisfying the needs and pattern of demand of corporations, with special attention being given to the adoption and dissemination of intangible capabilities. Due importance is given to tangible investment in companies (modernization of machinery and equipment), to R&D plans and to structures of state support for scientific activities, but the specific needs of SMEs have not been taken into account. For most SMEs innovation is not based on R&D in the strict sense of the term, and the purchase of new equipment is merely the first step. For most SMEs innovation depends on combining existing «bits» of technology and knowledge, in areas such as engineering, design, quality, production management, and managing the value chain, etc. So we suggest a set of tools, programmes and institutional set-ups which in our view are necessary for promoting technological and innovation policies focused on companies and on dissemination.