Co-Evolution of Innovation Policy and Industrial Structure in Sweden Term Paper

Co-Evolution of Innovation Policy and Industrial Structure in Sweden - Term Paper Example   As interaction in the society gives rise to the development of institutions, manifold arbitrary behaviors ushers in those institutions which come in practice and thus become stereotyped norms of those institutions followed through time. So institutions become dire indicators of several outcomes of the many domains of the society. It is a general notion that the key indicators that promote economic development are the levels of investment, education, culture, governmental policies, income etc. But if rather viewing in a more magnified way, the social scientists of the modern world have claimed that it is the primary role of social institutions whereby the lieu of interaction between independent agents play a dominant role in accumulating valuable resources and fetching profits for the society. This notion of the institution acting as the primordial driving force of economic development is resonated in different arrangements of the society like property rights, microfinance, busine ss associations, the advice of developmental agencies in proposing minimal state intervention implying pro market paradigm etc. Institutional variations are a huge domain of study and focus in the modern industrialized world as it has been the real fact that the so-called differences between developed and developing nations have emerged. Many countries have emerged as superpowers and many countries are still stuck in a vicious circle of poverty and the main reason for this can be attributed to the diverse institutional innovation policies adopted and successfully implemented in the former case and lack of implementation of institutional innovation policies in the latter case. However, there are many instances of developing countries coming from the periphery and emerging as a nucleus of growth potential.