TY - JOUR AU - Karo, Erkki AU - Kattel, Rainer PY - 2014/01/01 Y2 - 2024/03/28 TI - Public management, policy capacity, innovation and development JF - Brazilian Journal of Political Economy JA - BJPE VL - 34 IS - 1 SE - DO - UR - https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/262 SP - 80-102 AB - <p>In this paper we discuss the question of what factors in development policy create specific forms of policy capacity and under what circumstances development-oriented complementarities or mismatches between the public and private sectors emerge. We argue that specific forms of policy capacity emerge from three interlinked policy choices, each fundamentally evolutionary in nature: policy choices on understanding the nature and sources of technical change and innovation; on the ways of financing economic growth, in particular technical change; and on the nature of public management to deliver and implement both previous sets of policy choices. Thus, policy capacity is not so much a continuum of abilities (from less to more), but rather a variety of modes of making policy that originate from co-evolutionary processes in capitalist development. To illustrate, we briefly reflect upon how the East Asian developmental states of the 1960s-1980s and Eastern European transition policies since the 1990s led to almost opposite institutional systems for financing, designing and managing development strategies, and how this led, through co-evolutionary processes, to different forms of policy capacity.&nbsp;</p><p><strong>JEL Classification:</strong> O25; P110: P160; P520.</p> ER -