Demand-based innovation policies increase demand for innovations and improve conditions for the uptake of innovations in order to spur innovation and their diffusion into the marketplace.
Development of Lead Markets
Demand-based policies target innovations towards new markets and promote business development by exploiting lead market potential for markets that are suited for the introduction of innovations. They are also the markets that provide the catalyst for most global products and technologies, and Azione’s expertise helps public agencies identify them.
Public agencies are thus crucial in supporting new industries, and their growth should be a combined effort of the participants within the entrepreneurial ecosystem. By investing in market development and driving demand, governments play a key role in supporting entrepreneurs.
Agencies may also improve demand competence of costumers as a key enabler for the diffusion of innovation. The more capable the users, the more likely it is that they will demand and adopt innovations. Policy makers improve awareness through marketing support, skills training, education, and demonstration. Azione can advise public agencies on this process.
Businesses as Entrepreneurial Hubs
Industry bodies and chambers of commerce could also drive greater collaboration between established and emerging businesses. Azione partners these organisations to develop:
1. Greater collaboration both as a buyer and a supplier: Established businesses can work with small businesses to source innovation and technology. They will also better understand the buying needs of emerging firms and develop solutions and products specifically tailored for them.
2. Greater M&A activity: Established businesses need to proactively look at start-ups as sources of inorganic growth – both intellectual property (IP) and non-IP related. Greater engagement with new ventures will improve established their understanding of such ventures and encourage acquisitions as a preferred mode over organic development, with the benefits of the access to passion-driven talent and reduced time-to-market.