Classification and Choice of Science, Technology and Innovation Policy Instruments

Design and choice of policy instruments are considered as key factors in STI policy-making process. Therefore, it is crucial to understand the nature of policy instruments and the logic of government intervention in the innovation system, based on these instruments’ mechanisms. In addition, considering ongoing changes in STI policy-making environment, the approaches to the instruments and their effects are evolving and because of that, there is a need to review and revise our point of view. There are three major trends for classification of the instruments based on intervention logic, target groups, and the mechanism through that the instruments solve the problems of innovation systems. Respecting that, a focus-based classification is suggested in this paper which classifies the policy instruments into four main categories consist of instruments focused on stimulating the innovation supply-side, instruments focused on stimulating the innovation demand-side, instruments focused on the formation of systemic relations, and instruments focused on infrastructures and regulation. Although the more recent studies have a systemic approach to the policy instruments based on their potential for solving the problems of innovation systems, in this paper, we title a specific type of instruments as systemic instruments which their focus is on capacity building for more interactions and communications between different actors of the system. Eventually “110 Programs for Supporting Knowledge-based Companies in Iran” is reviewed as a case study and the results indicate that a major part of these programs is direct financial support. In addition, amongst different types of systemic instruments, few choices are considered in these programs.