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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ If budget envelopes are fixed, or difficult to alter, the managers of those budgets have to use whatever money is available as efficiently as possible. This means targeting it at interventions offering the best ratios of amount-spent to outcome, while ensuring that this focus does not create bottlenecks elsewhere in the innovation chain or innovation cycle (see figures 1, 2, 3), such as at the point where an expensive demonstration project is needed to turn a non-bankable technology into a bankable one (often referred to as the “Valley of Death”). Different funding agencies, whether private or public, need to know each other’s capacity to act on different parts of the innovation chain/cycle and to talk to each other to make sure that their combined portfolio of policies reduces the time to market of emerging technology and the cost of bringing the technology to market. Streamlining the research and innovation policies of a country or a region requires collaboration across government departments, from taxation (to incentivise private sector investment in R&D, or, possibly, to redress the imbalance in take-home pay between, for example, the financial services industry and engineering), to immigration (enabling people with the right skills to move to the host country) and education (is there a latent interest in science in general, and emerging energy technology in particular, in schoolchildren or students in that is not being kindled?). (In brackets, the Technology Readiness Level – see 3.2) (1-2) (3-4) (5-6) (6-7) (8-9) Figure 1: The classic linear model of sponsored research, innovation, and deployment [Kammen 2008], applicable up to the point where technology becomes bankable. All parts of the innovation cycle need to be stimulated and supported otherwise new technologies face difficulty in getting to market. IP/A/ITRE/ST/2009-11 & 12 134 PE 440.278PDF Image | Policy Department Renewable Technologies
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