A human capability approach to transformative innovation policy. Theoretical insights and practical implications for directionality

Abstract

Transformative Innovation Policy (TIP) is an emerging approach to science, technology, and innovation policy that addresses social and environmental challenges. While TIP literature highlights the importance of considering multiple innovation pathways, it often overlooks the injustices hindering them. This paper explores how the Capability Approach (CA) can enhance the analysis and practical considerations of directionality within the TIP. We begin by discussing the TIP’s directionality principle, adopting a more politically nuanced view that sees innovation as irreducible pluralities of possibility in balanced ways ([Stirling, A. 2024. “Responsibility and the hidden politics of directionality: opening up ‘innovation democracies’ for sustainability transformations.” Journal of Responsible Innovation 11 (1): 2370082.]). Based on this conception of directionality, we propose rethinking TIP principles, emphasizing the democratic aspect of innovation and, to this end, introducing a new principle: democratic decision-making. We argue that strengthening democracy is vital for continuously refining and improving collective decision-making processes locally and globally, making it an essential feature for TIP and innovation policy in general. Furthermore, we examine the core elements of the CA – capability, agency, and conversion factors – and demonstrate how these can inform TIP by adding justice considerations to its core framework. This potential is illustrated through a case study, showing how the CA can guide specific considerations in TIP policy engagements. Finally, we conclude by discussing the mutual benefits: how TIP’s directionality can be enriched by the CA, and conversely, how the CA can be enhanced with the new understanding of TIP directionality.