The erosion of state capacity and the European innovation policy dilemma -A comparison of German and EU information technology policies

The article analyzes the impact of the globalization of markets, technologi es and companies and of the Europeanization of public policies on state cap acities in technology policy. Based on empirical examples from the field of information technology, the article argues that technology policy has been characterized by two contradictory developments in the last two decades. O n the one hand, the concepts and strategies guiding public policies have be come more and more complex, resulting in comprehensive programs for nationa l and European "innovation policies". On the other hand, as a result of the economic globalization; as well as of changes in the internal structure of the state, the state capacities to implement these ambitious strategies su ccessfully have been eroding. As a consequence, technology policy both on t he national and on the supranational level has been confronted with an inte nsifying strategic dilemma. Finally, the article discusses policy options t o cope with this strategic dilemma in innovation policy. (C) 2001 Elsevier Science B.V. All rights reserved.