Innovation policy is in need for a rational which allows the design and evaluation of policy instruments. In economic … intervene and which instrument should be applied. In innovation policy this rational cannot meaningfully be applied because of … the uncertain and open character of innovation processes. Uncertainty is not a market failure and cannot be repaired …

Innovation is an inherently uncertain process. Success is typically coupled with risk and we can only hope that those … with great ideas will persevere. To encourage innovation, society reduces some of the innovation risk through structures … addressed by legal reform, while the others are actually essential to a healthy innovation system. The article concludes with …