A system failure framework for innovation policy design

This article sets out a policy framework for implementing 'system of innovation' (SI)-based strategies. On the basis of a literature review on system failures, the study designs an SI-policy framework that can provide policy makers with practical leads how to design, analyse and evaluate policy measures in the field of innovation. The functioning of the framework is illustrated on the basis of an evaluation of Dutch cluster policy. From this illustration, it can be concluded that the SI-framework provides helpful leads for policy design and evaluation and renders more specific policy recommendations than the generally used market failure approach.