Framework for analysing the role of state owned enterprises in innovation policy management: The case of energy technologies and Eesti Energia

• The paper analyses state owned enterprises role in innovation policy.
• A new framework for analysis of innovation policy practices in state owned enterprises is proposed.
• Probable outcomes of innovative investment depending on the broad framework are discussed.
• The importance of innovation policy management is discussed in the context of energy technologies.
• Proposed framework is applied to the case study of Eesti Energia, the state owned energy company in Estonia.

This article discusses the role of state-owned enterprises in innovation policy management. This has long been a neglected topic in both management and innovation literature. The paper outlines the most important factors that influence R&D objectives and investments in state-owned enterprises and their interaction with other innovation policy actors and measures. The main contribution of the article is a novel theoretical approach for analyzing the main trends in innovation policy practices in state-owned enterprises. Their possible role in technology advancement, especially in areas requiring large-scale investments, as in energy technologies is discussed. The probable outcomes of innovative investment depending on the constraints present in the system are analyzed. The framework is actualized with a case study of Eesti Energia, a state-owned energy company in Estonia.