The Erosion of State Capacity and the European Innovation Policy Dilemma: A Comparison of German and EU Information Technology Policies

Abstract: The article analyzes the impact of the globalization of markets, technologies and companies and of the Europeanization of public policies on state capacities in technology policy. Based on empirical examples from the field of information technology , the article argues that technology policy has been characterized by two contradictory developments in the last two decades. On the one hand, the concepts and strategies guiding public policies have become more and more complex, resulting in comprehensive programs for national and European ?innovation policies?. On the other hand, as a result of the economic globalization; as well as of changes in the internal structure of the state, the state capacities to implement these ambitious strategies successfully have been eroding. As a consequence, technology policy both on the national and on the supranational level has been confronted with an intensifying strategic dilemma. Finally, the article discusses policy options to cope with this strategic dilemma in innovation policy.;