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Prof. Attila Havas demonstrates in this paper the simultaneous need for systemic institutional changes and macroeconomic stabilisation in order to improve microeconomic performance. This article gives to innovation policy an evolutionary economics framework. One of the most important policy implications of this school is that public policies should be aimed at promoting learning in its widest possible sense, in other words competence building at individual, organisational and inter-organisational levels. Co-operation and networking among a host of actors, including not only researchers and producers but users, too, is a vital element in generating and disseminating knowledge. Other policies, such as investment, privatisation, industrial, regional development, competition, trade, monetary, fiscal, education, labour market and foreign policies, also have certain bearings on innovation and diffusion, and thus should be co-ordinated as well. The paper follows Dodgson and Bessant who - in 1996 - have proposed a clear distinction between science policy, technology policy and innovation policy. They define science policy as “concerned with the development of science and the training of scientists”, while technology policy “has as its aims the support, enhancement and development of technology, often with a military and environmental protection focus”. Innovation policy, however, “takes into account the complexities of the innovation process and focuses more on interactions within the system”. Thus, the Hungarian situation is explained to offer suggestions for other countries undergoing deep structural changes. Journal of International Relations and Development
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