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Crisis Innovation Policy from World War II to COVID-19

In: Entrepreneurship and Innovation Policy and the Economy, volume 1

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  • Daniel P. Gross
  • Bhaven N. Sampat
Abstract
Innovation policy can be a crucial component of governments’ responses to crises. Because speed is a paramount objective, crisis innovation may also require different policy tools than innovation policy in noncrisis times, raising distinct questions and trade-offs. In this paper, we survey the US policy response to two crises in which innovation was crucial to a resolution: World War II and the COVID-19 pandemic. After providing an overview of the main elements of each of these efforts, we discuss how they compare and to what degree their differences reflect the nature of the central innovation policy problems and the maturity of the US innovation system. We then explore four key trade-offs for crisis innovation policy—top-down versus bottom-up priority setting, concentrated versus distributed funding, patent policy, and managing disruptions to the innovation system—and provide a logic for policy choices. Finally, we describe the longer-run impacts of the World War II effort and use these lessons to speculate on the potential long-run effects of the COVID-19 crisis on innovation policy and the innovation system.
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Suggested Citation

  • Daniel P. Gross & Bhaven N. Sampat, 2021. "Crisis Innovation Policy from World War II to COVID-19," NBER Chapters, in: Entrepreneurship and Innovation Policy and the Economy, volume 1, pages 135-181, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14574
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    Cited by:

    1. Bryan, Kevin A. & Lemus, Jorge & Marshall, Guillermo, 2022. "R&D competition and the direction of innovation," International Journal of Industrial Organization, Elsevier, vol. 82(C).
    2. Gross, Daniel P. & Sampat, Bhaven N., 2023. "The World War II crisis innovation model: What was it, and where does it apply?," Research Policy, Elsevier, vol. 52(9).
    3. Giorgio Tripodi & Francesco Lamperti & Roberto Mavilia & Andrea Mina & Francesca Chiaromonte & Fabrizio Lillo, 2022. "Quantifying knowledge spillovers from advances in negative emissions technologies," LEM Papers Series 2022/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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