Innovation is deemed to be one of the key drivers for economic growth, for the
sustainable enhancement of general welfare and ultimately for a better life for
everybody. The desirability of innovation therefore is largely undisputed, irrespective
of the political organization of a national economy. Much to the contrary, a conclusive
answer to the question what brings about innovation hardly can be given. We
only may assume that an indefinite number of factors are likely to play a role. Such
factors influence the decisions of those who potentially might innovate – but who
possibly shrink back from the necessary steps if certain conditions are not fulfilled.
It goes without saying that at least some of these factors directly or indirectly
depend on state intervention, be it the legal framework of a national economy or
further circumstances influenced by governments on different layers. It is, however,
difficult to imagine that legislatures or state authorities really understand the highly
complex interplay of all factors they intend to influence. This is even truer because
verifying the causality between an individual factor and certain effects observed in
the environment in which that factor is supposed to have an impact is one of the
hardest tasks of – particularly economic – research. Thus it turns out to be
extremely difficult to detect the optimal legal or factual framework, which actually
supports innovation best.