Heuristics and the microeconomics of innovation and development

Researchers have long recognized multiple ways of innovating. However, the expositions fail to connect microeconomics production sets real-world institutional variety required build technological capabilities and innovate. This paper argues for explicit attention in heuristics used innovation policy practice, analyses three such heuristics. While some types social challenges can be addressed through formal science industrial R&D, most common proxies innovation, industrializing contexts will require changes institutions organizations frame solve local development problems. The analysis thus bridges traditional with priorities.