Government Policy and Trajectories of Radical Innovation in Dirigiste States: A Comparative Analysis of National Innovation Systems in France and Korea

Contrary to the argument that radical innovation is only compatible with institutional arrangements characteristic of liberal market economies, this paper shows how state-led economies successfully organize their innovation systems to promote radical innovation with a comparative analysis of two dirigiste states, France and Korea. The authors further analyse how government policies under similar institutional arrangements drive different trajectories of radical innovation, as illustrated by their relative competitiveness in the ICT sector. The two dirigiste economies have undergone substantial institutional changes adapting to globalization but sustained state initiatives in coordinating their relationship-based innovation systems, reinforcing the cooperation among the state, academia and industry.