This article first reviews the economic rationales for innovation policy. It then describes the Finnish innovation policy and policy making environment. The Finnish policy is evaluated from the point of view of fostering entrepreneurship. R&D subsidies, the main tool of Finnish innovation...

In this article we review recent evidence showing how market forces and policies shape the rate and direction of innovation, with various implications for inequality. First, we characterize several market mechanisms whereby higher rates of innovation lead to higher inequality. Second, we...