New instruments in innovation policy: The case of the Department of trade and industry in the UK

This paper studies how investments in knowledge codification may be used as innovation policy tools, in a non-interventionist policy environment. Analysing statistically and historically the case of the UK's Department of Trade and Industry, from the early 1980s to 2002, the paper shows how knowledge codification can be used as policy-instrument for restructuring the design, characteristics and implementation of public innovation support as well as for developing new national competitive competences. This paper suggests that within a context of outsourced policy implementation and execution, the continuous upgrade of public support for innovation requires that both governmental department and external suppliers engage in 'learning-by-codifying'. © Beech Tree Publishing 2007.