Governments’ intervention on enhancement of innovation through innovation policy making may be made in developed countries to maintain competitiveness but in developing countries like Iran, could be for the aim of catching up promotion at national level. So, for our country applying right and effective policies has critical importance.
In our country the supply side innovation policies, such as establishment of academic and government research institutions, supporting research and development in industry, has been implemented since last decades, and in recent years, in the form of effective programs such as, Innovation and Efflorescence Fund, has become more diverse.
In the last two decades, a new wave in the area of innovation policies, as demand-side innovation policies has been emerged that has been known important by innovation policy experts, in their opinion, if demand-side policies accompanied by supply-side policies, the result actually will be more effective.
In demand-side policies category, various tools such as, innovation-oriented public procurement, innovation-based regulations and standards, and labeling are being used. The purpose of this paper is that to provide more understanding to demand-side policies, their policy logic, a variety of policy instruments applicable in this field, and explain a depiction of these policies implementation trend in Europe.