The Evolution and Use of a Policy and Research Tool: assessing the technological capabilities of firms

Firms differ widely in their technological capabilities. Innovation policies are likely to be more or less successful depending upon the level of such abilities of those firms to which a policy is aimed. Without data on the proficiencies, strengths and weaknesses of firms within the target group(s), the construction and application of innovation or industrial policies are likely to miss salient factors in the ability of firms to benefit from the support that is intended. An in‐depth knowledge of firms’ capabilities can allow policymakers to target support according to the specific needs of firms. This paper describes the Technology Capability Audit Tool (or CAT) that was designed to assist policymakers in differentiating between firms and in understanding their level of ‘innovation readiness’. Examples of the use of the CAT are presented from South Korea, Thailand, Ireland, Brazil and the UK.