Technology Push, Demand Pull, Networks, and Public Policy: What Drives and Facilitates Innovation?

Despite innovation being used as a buzzword in most policy documents globally, it is not always clear what we understand by innovation. Traditionally, social science research has considered technological progress to be exogenous to the economic system, while the innovation process itself has been thought of as a ‘black box’. In recent years, research on innovation has increased manifold. Yet, no consensus has been reached regarding what constitutes innovation, what drives and facilitates innovation, and what impact it has on the economy. Taking cue from this backdrop, the chapter discusses the prominent theories of technology push and demand pull drivers of innovation. Next, it identifies the apparent limitations of linear push-pull models and emphasises the more realistic dynamic models of innovation facilitated by external knowledge networks and public policies. The final part of this chapter suggests the need for considering systemic interactions between the instruments and provides some discussion on India’s evolving innovation ecosystem.