innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may … be particularly conducive to innovation, and demonstrates that, in general, the optimal policies of the leader should … industrial policies, public investments, and systems of social protection), not only leading to more innovation, but ensuring …

learning by doing, where learning occurs within the industrial sector but spills over to other sectors, we demonstrate the … innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may … be particularly conducive to innovation, and demonstrates that, in general, the optimal policies of the leader should …

wider range of instruments. In particular, it argues that 'learning' is central to development, there are intrinsic market … failures associated with learning, and that carefully crafted industrial policies can promote learning and development. …