© TiCCA4DANU
How can innovation policy rise to the scale of today’s most complex challenges, especially climate change adaptation? In a recent TiCCA4DANU video talk, Prof. Dominique Foray—emeritus professor at Ecole Polytechnique Fédérale de Lausanne (EPFL), co-founder of the Smart Specialisation (S3) methodology and Chair of the TiCCA4DANU Advisory Board—explains why traditional approaches to innovation are no longer sufficient and Transformative Innovation Policies (TIP) are needed.
Innovation is often understood as the development of new products, processes, or business models. These “granular” innovations improve existing systems but do not fundamentally alter them. Today, however, many societal challenges require a different kind of innovation: the transformation of entire systems. Whether establishing a circular economy, redesigning urban mobility, or enabling regions to adapt to climate risks, transformative innovation moves beyond single solutions and involves coordinated changes across technologies, infrastructures, services, and social behaviours.
A key distinction of transformative innovation policy is the central role of the public sector. While firms may drive individual innovations, system transformations require an orchestrator capable of aligning diverse actors, ensuring inclusiveness, and maintaining a long-term, mission-oriented perspective. Private companies may attempt such transformations, but their efforts inevitably reflect their own business interests. The public sector, by contrast, is better positioned to manage the breadth and complexity of societal transitions.
Prof. Foray also emphasises the experimental nature of transformative innovation. Because system change is uncertain, policymakers must adopt an iterative, learning-oriented mindset—testing different instruments and incentives, observing how stakeholders respond, evaluating outcomes, and adjusting strategies. This discovery process reveals not only what works, but also which barriers or behavioural patterns must be addressed as part of the transition.
Another defining challenge is coordination. Effective system transformation requires simultaneous action across markets, technologies, regulations, infrastructures, and social norms. For example, sustainable mobility depends not only on new technologies or alternative transport services, but also on citizens’ willingness to change habits—something that becomes possible only when supportive infrastructures and policies are in place. No single intervention is sufficient; progress emerges from reinforcing actions implemented together.
This is why Transformative Innovation Policies are so relevant for climate change adaptation. Adapting to climate risks demands comprehensive, interconnected changes across multiple domains. It requires a public sector capable of orchestrating cooperation, fostering experimentation, and mobilising society around shared goals.
Explore these insights directly from Prof. Dominique Foray:
👉 Watch the video here
