Emergence of societal challenges-based innovation policies in market-based innovation systems: lessons from Estonia

The societal challenges-based approach to science, technology and innovation (STI) policy is currently one of the key ways by which the EU seeks to break away from the linear and science-push driven policy thinking. This seems to raise complex challenges of policy legitimisation, rationalisation and institutionalisation especially in the countries that have tried to build market-based innovation systems. Based on the case study of Estonia, we show that in addition to the development of new policy mixes and coordination instruments, such policy shift may also require the re-thinking of core STI policy rationales and legitimisation practices, and these may have to be further supported by experimental policy approaches and institutional innovations for changing the habits and routines of key STI system actors.