Scarcity of Ideas and Design of Optimal Incentive Schemes for Innovation

Abstract

Since innovation is the driving force behind economic growth, enhancing its innovative capacity is an important consideration for Australia. From an economics point of view, this requires the design of optimal incentive schemes in the institutional structures which are central to promoting innovation. The proposed research aims to achieve exactly this by developing a definition of innovativeness and analyzing its implications. Its results will contribute to the policy discussions on innovation in Australia and will enhance the academic interactions between Australian and international universities.