Mind map
Public Policy Approaches
Mind map: Public Policy Approaches
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Public Policy Approaches
0. Preface:
- Economy is a Complex System
- in LR largely outside of direct control of individual policy makers
- take Systems Process Approach
- facilitate community processes
- e.g. communication
- e.g. self-organisation
- e.g. transformative innovation
- facilitate community processes
- Economy is a Complex System
1. Innovation is key driver of capitalist system
- process will involve creative destruction
- recessions free up resources used by inefficiency / defunct firms
- policy can encourage or hinder innovation
- avoid propping up old dying inefficient industries
- facilitate structural change processes to speed up destructive process
- social welfare system important support during digital disruption
- process will involve creative destruction
2. Emphasize LR dynamic efficiency
- Long term strategic direction for a firm, industry or economy
- strategic trade theory
- invest in building blocks today for tomorrows evolutionary development
- more and ealier STEM education, programming at high school, financial incentives
- e.g. NBN, telecommunications investements
- health and education
- private health care levy
- superannuation policy
- renewable energy
- govt funded R&D
- Critical for radical innovation, but so much UNCERTAINTY present
- Strategic role for public investment
- e.g. medical research, renewable energy, defence
- Strategic role for public investment
- tradeoff between stability and order, and openness and diversity
- Dynamic VS Static
- will need BOTH but different situations required different emphases
- DYNAMIC: creativity, entrepreneurship, LR
- STATIC: Managerialism, SR
- will need BOTH but different situations required different emphases
- Dynamic VS Static
- allows for sub-optimal frameworks within jurisdiction
- facilitating diverse points of view within system
- e.g. Arts and Humanities funding
- dictatorships dont allow for diversity -> no innovation
- facilitating diverse points of view within system
- Long term strategic direction for a firm, industry or economy
3. Improve Linkages between system components
- encouraging firms to work together
- law & order
- CRC: Cooperative Research Centers (between govt, universities and private industry)
- Government can set visions for the future
- these visions can be the catalyst for increased linkages between industries
4. Support and encourage experimental behaviour
- economy needs to be tolerant of failure
- social security network
- support by gov for R&D, seed funding, incubators
- economy needs to be tolerant of failure
5. Encourage abundant microdiversity and variety