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The ultimate aim of the user-driven innovation programme is to obtain a significantly higher number of successful innovations – new products, services or concepts – that satisfy users. The aim is also to upgrade the qualifications of employees taking part in the innovation process. A midway evaluation of the programme highlighted the difficulty of unleashing userdriven innovation. Uncovering user needs does not necessarily lead to innovation, innovation from users takes time and requires involvement of top management in firms.

Phase 2 (two years), USD 750 000 for a full R&D effort. • Phase 3, the firm pursues (with non-SBIR funds) the commercialisation objectives resulting from phases 1 and 2. Phase 3 follow-on projects can benefit from US government R&D funding; awards are then funded from mainstream budget lines. The SBIR programme is worth over USD 2 billion annually and makes over 4 000 awards a year. SBIR funds are designed as a first step on the procurement ladder. Awards are linked to public-sector customer requirements and the details are published on the Internet.

Sale or licensing of university patents) towards a model based on joint development. Such joint development models include public-private partnerships (PPPs) and involve networks of firms and actors outside national borders. g. g. AIDS). For example, the Australian federal government’s competitive grants programmes (Green Car Innovation Fund and Climate Ready) provide matching funding for businesses to develop cutting-edge technologies to mitigate the effects of climate change (see Chapter 2). This type of programme is very much a combination of demand- and supply-side instruments.

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