A Macro Perspective of the Innovation Process: A Dynamic Performance Management Approach Chapter in Scopus uri icon

abstract

  • This chapter introduces a novel approach to macroeconomic policy design and analysis, using Dynamic Performance Management (DPM) to investigate the complex relationship between institutional quality and innovation. Integrating performance management, system dynamics, and political economy enhances performance reports, governance, and policy design by mapping output outcome measures and performance drivers. A DPM model is proposed, highlighting the interaction between strategic resources, performance drivers, and final outcomes, focusing on taxation¿s impact on institutional quality. This approach aims to improve the understanding of resources, drivers, and outcomes needed for effective public policy in national innovation systems. Although the preliminary model centres on one variable, it can be expanded to include others, providing valuable insights for policymaking, and fostering institutional collaboration. Further research on combining qualitative modelling with simulation for a robust macroeconomic policymaking methodology is recommended. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

publication date

  • January 1, 2023