Towards a new role of the state for transformative innovation

This introduction to the The New Role of the State for Transformative Innovation: An International Research Handbook outlines the conceptual and normative foundations for rethinking the role of the state in the context of innovation-driven societal transformation. It positions the discussion within historical and contemporary debates on state–market relations, arguing that traditional frameworks – focused on market failure correction – are inadequate for addressing today's grand societal challenges imperatives. The introduction presents transformation as both an economic and socio-political process, involving high uncertainty, intergenerational implications, and structural change across systems. In this context, it explores how the state must adopt new and adaptive roles to catalyze systemic innovation trajectories. It also reflects on the importance of addressing systemic and transformation-specific failures through reflexive policy approaches. The authors emphasize the need for agile governance, policy learning, and institutional capacities that can balance long-term strategic direction with short-term responsiveness, - particularly under conditions of global crises and geopolitical tensions. By framing the key themes, rationales, and questions that inform the subsequent chapters, the introduction positions the book as a contribution to the emerging field of transformative innovation policy and as a call for a renewed and multi-dimensional understanding of statehood in shaping innovation systems.