This paper intends to provide a framework for thinking, debate and action on the role of public sector and the R&D process of innovation.
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Contents: 1. Introduction......................................................................................3 2. The Linear Model........................................................................................................5 2.1 Historical Background........................................................................7 3. Public Research and Industrial Innovation...................................................9 4. Exogenous VS Endogenous Scientific Knowledge........................................10 5. The role of the public sector...................................................................12 6. Conclusions......................................................................................14 References..........................................................................................15 INTRODUCTION: From time to time, major innovations develop, often driven by the emergence of new technologies, which transform sectors, giving rise to new workforce structures, new types of organization, new relationships between organizations and step-change in overall performance. Technological Innovation has been recognized as a major factor for economic progress. Adam Smith proved that the Division of Labour results to the process of innovation and inventions are the products of the dexterity of the employees. "Philosophers or men of speculation", according to him, are those who can combine many things into one and manage them efficiently. Market is able to lead economy to optimality and government should only intervene when there is a need. He put emphasis on the demand-pull and less on the technology-push....


