Tallinn University of Technology

Institute of Public Administration

Innovation Policy and Small States

General description of the specialisation

The second semester "Innovation Policy and Small States" specialization deals with small states-specific socio-economic and institutional aspects that determine the possibilities for different types (technical, socio-economic, cultural etc.) of innovation and their level of sophistication (radical, incremental), paving eventually the way for economic growth and development. By following the examples Central and Eastern European (CEE) countries, students will get an insight of techno-economic capacity of these states. They will study the governance and economic structure of these small states, which define the specific context for the instruments to be used in order to achieve the objectives of innovation policy. Thereby, by following comparative study approach, the phenomenon of core periphery relations in Europe is surveyed, and as a result, students are presented with the discussion about the possibilities and obstacles for policy transfer, stemming from the dichotomy between CEE small states and big powers of Western Europe within the European Community due to historical and cultural reasons.

The specialization module for the ESST students consists of three courses in the total amount of 10 ECTS. These three courses would be introductory and fundamental to assist students with articulating and developing their research topic for masters` thesis development.

1) “Master`s Seminar”

Obligatory: Yes

Number of credit points: 4 ECTS, 120 hours

Grade: Pass/Fail

Language of instruction: English

Content: The seminar operates as a classical graduate seminar, where Master's students have to present their work on their MA thesis. During the course students are expected to engage in articulating work, in formulating research questions, in designing a thesis proposal and writing a literature review. Students are introduced with the research methods they mostly need to get acquainted with to conduct their specific thesis work.

Bibliography (recommended):

Patrick O`Brien. Technology and World Economic History, London School of Economics.

Geoffrey Hodgson. Institutional Economics, University of Hertfordshire.

Ha-Joon Chang. Institutions and Develpment, University of Cambridge.

Mario Pianta. Innovation and Employment, University of Urbino.

Franco Amatori. Technology and Structure in Alfred Chandler, Universita Bocconi, Milan.

Leandro Burlamaqui. Competition Policies and Intellectual Property Issues, Universidade Candido Mendes, Rio de Janeiro.

Gabriel Palma. The process of De-Industrialization, Cambridge University.

Richard Jolly. Poverty and Human Development, Institute for Development Studies, University of Sussex.

Lars Mjoset. Technology and the Irish Development, University of Oslo.

Pekka Ylä-Anttila. Technology and the Finnish Development, ETLA, The Research Institute of the Finnish Economy, Helsinki.

Dirk Messner. China and India in the Global Economy, German Development Institute, Bonn.

Lecturer(s): Professor Rainer Kattel

Educational methods:

Teaching consists of 6 seminars and a number of individual assignments.

Evaluation method:

Evaluation based on class participation and writing assignments.

2) "Policy Skills: Strategic Management, Policy Analysis, and Lesson-Drawing"

Obligatory: Yes

Number of credit points: 3 ECTS, 80 hours

Grade: Yes

Language of instruction: English

Content: Contemporary governments and policy makers often face highly complex task of designing long-term strategic policies within the framework of annual budget-making process that is necessarily geared towards short-term political gains and goals. Innovation and technology development are almost by definition policy areas were impact of policies lies in a more or less distant future. In order to design in such situation policies that perform well and actually attain desired goals, policy analysis, lesson-drawing and strategic management, public-private partnerships and procurement play key roles. This class is designed to address the “how”, rather than the “what”, of successful policy analysis and design, strategic management and lesson-drawing.

Bibliography:

Mintzberg, H. The Fall and Rise of Strategic Planning, Harvard, 1994.

Schick, A. The Performing State Reflection on an Idea Whose Time Has Come but Whose Implementation Has Not, OECD Journal on Budgeting, 2003, Vol. 3 Issue 2.

Dolowitz, P. D and D. Marsh. Learning from Abroad: The Role of Policy Transfer in Contemporary Policy-Making, Governance 13(1), 2000.

Evans, M and J. Davies. Understanding Policy Transfer: A Multi-Level, Multi-Disciplinary Perspective, Public Administration 77(2), 1999.

James, O and M. Lodge. The Limitation of „Policy Transfer“ and „Lesson Drawing“ for Public Policy Research, Political Studies Review (1), 2003.

Van Thiel, S. Trends in the Public Sector. Why Politicians Prefer Quasi-Autonomous Organizations. Journal of Theoretical Politics, 16(2), Sage Publications.

Pollitt, C and G. Bouckaert. Public Management Reform. A Comparative Analysis. Second edition. Oxford University Press, 2004.

Searle, R. J. What is an institution? Journal of Institutional Economics (2005), 1: 1.

Cabral, L., Cozzi, G., Denicoló, V., Spagnolo, G. and Zanza, M. 2006. Procuring Innovations. In: Dimitri, N., Piga, G. and Spagnolo, G. (eds). Handbook of Procurement. Cambridge: Cambridge University Press.

Edler, J. and Georghiou, L. 2007. Public Procurement and Innovation: Resurrecting the Demand Side. Research Policy, Vol. 36.

European Commission Expert Group. 2005. Public Procurement for Research and Innovation: Developing Procurement Practices Favourable to R&D and Innovation. Expert group report. EUR 21793 EN. Available at (16 December 2007): http://europa.eu.int/invest-in-research/pdf/?report_public_procurement_research_innovation_en.pdf.

European Commission Working Group. 2006. Pre-Commercial Procurement of Innovation: A Missing Link in the European Innovation Cycle. Working Group Report. Available at (16 December 2007): http://ec.europa.eu/information_society/research/key_docs/documents/procurement.pdf.

Skelcher C (2005) 'Public-Private Partnerships and Hybridity' in Ferlie E, Lynn L, and Pollitt C (eds.) Oxford Handbook of Public Management, Oxford: Oxford University Press.

Bovaird, T. 2004. Public-private partnerships: from contested concepts to prevalent practice International Review of Administrative Sciences. Vol 70(2).

Brown, T.L., Potoski, M. and Van Slyke, D. 2006. Managing Public Service Contracts: Aligning Values, Institutions, and Markets. Public Administration Review, May/June.

Office of Management and Budget. 2003. Circular No A-76 (Revised). http://www.whitehouse.gov/OMB/circulars/a076/a76_rev2003.pdf

Pigou, A. C. Some Aspects of Welfare Economics. The American Economic Review, Vol. 41, No. 3. (June, 1951).

Hicks, J. R. The Foundations of Welfare Economics. The Economic Journal, Vol. 49, No 196, (Dec., 1939).

Chang, H.-J., and P. Evans. The Role of Institutions in Economic Change. Paper prepared for the meetings of the „Other Canon“ group. Venice, Italy, 13-14 January, 2000.

Coase, R. The Firm, the Market, and the Law. The University of Chicago Press. Chicago and London, 1988.

Lecturer(s): Research fellow Veiko Lember & Professor Rainer Kattel

Educational methods:

This class is thought as a mixture of classical lectures and discussions based on students homework that focus on various case studies related to policy learning, transfer and management issues in economic and innovation policy areas.

Evaluation method:

Evaluation is based on three homeworks (brief case studies that are also discussed during the class) and final oral exam.

3) "Small States"

Obligatory: Yes

Number of credit points: 3 ECTS, 80 hours

Grade: Yes

Language of instruction: English

Content: The course will provide an overview of the main issues involved in development and administration of small states, which face often different problems than larger states, both in terms of the nature of problems (e.g. size of the market) and in potential solutions (e.g. limited human capital). Globalization and regionalization add new complex challenges to small states. Innovation and industrial development often depend on long-term and large-scale investments and growing markets, both lacking by nature in small states. This implies special focus on innovation and industrial policy context and its peculiarities with regard to innovation and development potential of small states.

Bibliography:

Baker, R. (eds.) Public Administration in Small and Island States, West Hartford, 1992.

Clarke, C. and T. Payne (eds.) Politics, Security, and Development in Small States, London, 1987.

Randma-Liiv, T. Civil Service Careers in Small and Large States: The Cases of Estonia and the United Kingdom, „Administrative Organisation, Tasks of the State, and the Civil Service“ series, vol 47, Baden-Baden: Nomos, 2001.

Raadschelders, J. B. 1992. Definitions of Smallness: A Comparative Study. In: R. Baker (ed.). Public Administration in Small and Island States. West Hartford, CT: Kumarian Press

Benedict, B. 1966. Sociological Characteristics of Small Territories and Their Implications for Economic Development. In: M. Banton (ed.). The Social Anthropology of Complex Societies. London: Tavistock Publications.

Sutton, P. and A. Payne. 1993. Lilliput under Threat: the Security Problems of Small Island and Enclave Developing States. Political Studies, XLI.

Baker, R. 1992. Scale and Administrative Performance: The Governance of Small States and Microstates. In: R. Baker (ed.). Public Administration in Small and Island States. West Hartford, CT: Kumarian Press.

Randma-Liiv, T. 2002. Small States and Bureaucracy: Challenges for Public Administration. Trames, vol. 6(56/51), no. 4.

Warrington, E. 1992. Taking Account of Small Scale and Insularity in Administrative Reform Strategies: The Case of Malta 1988 – 90. In: R. Baker (ed.). Public Administration in Small and Island States. West Hartford, CT: Kumarian Press.

Sikk, A. 2006. From Private Organizations to Democratic Infrastructure: Political Parties and the State in Estonia. Journal of Communist Studies and Transition Politics, vol. 22, No 3.

Sutton, P. 1987. Political Aspects. In: C. Clarke and T. Payne (eds). Politics, Security and Development in Small States. London: Allen & Unwin.

Thorhallsson, B. 2000. The Administrative Working Procedures of Member States. In: B. Thorhallsson. The Role of Small States in the European Union. Aldershot: Ashgate.

Vital, D. 2006 [1967]. The Inequality of States: A Study of the Small Power in International Relations. In: Ch. Ingebritsen, I. Neumann, S. Gstöhl and J. Beyer (eds.). Small States in International Relations. Seattle: University of Washington Press, Reykjavik: University of Iceland Press.

Thorallsson, B. and A. Wivel. 2006. Small States in the European Union: What Do We Know and What Would We Like to Know? Cambridge Review of International Affairs, Vol. 19, No. 4.

Hey, J.A.K. 2002. Luxembourg’s Foreign Policy: Does Small Size Help or Hinder? Innovation, Vol. 15, No. 3.

Ernst, D and K. Linsu. 2002. Global Production Networks, Knowledge Diffusion and Local Capability Formation. Research Policy, 31.

Stiglitz, J. 2000. The Insider: What I learned at the World Economic Crisis. The New Republic, April 17.

Handel, M.I. 1981. Weak States in the International System. London: F. Cass.

Moses, J. 2000. Open States in the Global Economy. The Political Economy of Small State Macroeconomic Management. Hampshire: Macmillan.

Andersen E.S. and B-A. Lundvall. Small National Systems of Innovation Facing Technological Revolutions: An Analytical Framework. In: Freeman, C. & Lundvall, B. 1988. Small Countries Facing Technological Revolution. London.

Kattel, R. and R. Anton. 2004. The Estonian Genome Project and Economic Development. Trames. 8(58/53), 1/2

Lecturer(s): Research fellows Tarmo Kalvet & Külli Sarapuu & professor Tiina Randma-Liiv

Educational methods:

The teaching method is a mixture of lectures and student seminar presentations. Within two weeks eight 2-hour lectures and two 3-hour seminars are held (all starting at evening times, 5:00 PM). For every lecture students are delivered with topical reading materials to be worked through beforehand. During the lectures the key issues of a topic (small state peculiarities, statehood and public administration, politics and policy-making, international relations, economic systems) are presented and discussed. For the seminars students are expected to present cases orally on the subjects already covered and analyze them by drawing parallels between theoretical standpoints and empirical findings (cases). After the course students are expected to present a paper (5-7 pages long essay) on course-related topic (could be a part of a master`s thesis).

Evaluation method:

Evaluation based on written exam on open questions (70% of a grade) and writing assignment (30% of a grade)

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The introductory module provides students with:

Insight in core literature on the specialisation
Current theoretical debates and issues
Insight into more specific research methods related to the specialisation
Already carried out studies and empirical findings
An overall background to formulate a thesis outline

Schedule of specialisation module courses

The specialisation module courses are held during the first months of spring term, i.e. in February and March. The sequence of courses and exact dates vary annually. All courses are scheduled for evening times starting from 5:00 PM.

Language of instruction

The language of instruction of the whole "Innovation Policy and Small States" specialisation module is English.

Maximum number of ESST students

There are no formal requirements with regard to minimum or maximum number of students for the specialisation under Technology Governance programme.

Some examples of thesis topics

Fiscal policy, budgeting and planning in small states;
The impact of financial policy on innovation process;
The risks and benefits of a development strategy based on external financing;
The impact of technology and techno-economic paradigms on small states (specifically, on education and the university system; on parliamentary elections and the constitutional framework via e- and m-voting and e-governance generally; or on mobility of economic activities (e.g. outsourcing) and company-level strategies);
The role of the diversity of economic activities and occupations in innovation;
Small Country ‘Squeeze’: technology and skills gap between large and small countries;
The role and the nature of social capital in small states;
Public-private partnership, procurement and innovation;
The impact of public sector reform on innovation, R&D and education policies in small states.

Techno-economic paradigms, financial fragility and development, the characteristics of CEE countries, e-governance, administration and innovation, role and impact of structural funds on innovation, the impact of public procurement on innovation, and economic development and innovation in small states is general indication of possible topics to be covered by theses.

Staff members who may act as thesis supervisors

Prof. Rainer Kattel: innovation and development in CEE, national innovation systems

Prof. Wolfgang Drechsler: the role of public management and the state in innovation and economic development

Prof. Tiina Randma-Liiv: administration of small states

Prof. Jan Kregel: financial policies, innovation and economic development

Prof. Carlota Perez: techno-economic paradigms

Prof. Erik S. Reinert: uneven development, preconditions and management of innovations, relationship between financial and production capital

Research fellow Tarmo Kalvet: ICT, e-governance, innovation policy

Research fellow Veiko Lember: impact of public procurement on innovation

Research fellow Külli Sarapuu: administration of small states

Web sites

More information regarding Technology Governance programme, Tallinn University of Technology, and supportive services for international students may be obtained from the following websites:

http://hum.ttu.ee/tg/

http://www.ttu.ee/?lang=en

http://www.campusttu.ee/eng/

http://www.ip.ttu.ee/