Government Failures and Institutions in Public Policy Evaluation The Case of Dutch Technology Policy A 349389 Ard Schilder V 2000 ^VAN GORCUM
Contents Preface 1 Chapter 1 Technology policy and a changed government paradigm 1.1 Introduction 3 1.2 Technology: dynamic theoretical and policy developments 4 1.2.1 Technology in economic theory 4 1.2.2 Policy developments 6 1.3 A changed government paradigm 7 1.3.1 The "Golden Age" of the old government paradigm 7 1.3.2 The end of the Golden Age and a new government paradigm 11 1.4 Research questions 17 1.5 Methodology 21 1.6 Summary and dissertation outline 21 1.6.1 Summary 21 1.6.2 Dissertation outline 22 Chapter 2 Public choice perspectives on public policy 2.1 Introduction 23 2.2 Bureaucratic behaviour 24 2.2.1 Down's pluralist model of bureaucracy 24 2.2.2 Niskanen's theory on bureaucracy 26 2.2.3 Dunleavy's bureau-shaping model 34 2.3 Rent-seeking 36 2.3.1 TheTullock rectangle and beyond 37 2.3.2 The logic and consequences of collective action 40 2.3.3 Possible remedies and critiques 41 2.4 Political opportunism 44 2.4.1 The basic argument 44 2.4.2 Empirical issues 45 2.5 Public choice and government failures 46 2.6 Relevance for central research question 47 Chapter 3 Institutional economic analysis and public policy 3.1 Introduction 51 3.2 What is institutional economics? 51 3.2.1 Terminological issues 51 3.2.2 Central concepts in the New Institutional Economics 52 3.3 New Institutional Economic analysis 54 3.3.1 The micro-analytic perspective 54 3.3.2 The macro-analytic perspective 58 3.3.3 An integrated institutional economic framework 60
3.4 Institutional Economic analysis and government 63 3.4.1 Government in the institutional environment approach 64 3.4.2 The public sector as governance structure of last resort 65 3.4.3 Principal-agent theory and public policy 67 3.4.4 Transaction cost politics 68 3.4.5 New institutional political economy 71 3.5 Institutional economic analysis and public policy 72 3.6 Relevance for technology policy in the Netherlands 76 Chapter 4 The New Public Management 4.1 Introduction 79 4.2 New Public Management versus the traditional public administration paradigm 79 4.2.1 Mission, goals and strategy in the New Public Management 80 4.2.2 Focus on results and performance measurement 81 4.2.3 Attention for external relations 82 4.3 The New Public Management and its critics 83 4.3.1 Private management theory and economics in the analysis of the public sector 84 4.3.2 The empirical basis of the New Public Management 85 4.4 Examples of the application of the New Public Management paradigm 87 4.4.1 General developments in the public management of OECD countries 87 4.4.2 The new style government budget in the Netherlands 90 4.5 New Public Management and Public Choice 93 4.6 New Public Management and Institutional Economics 94 4.7 Summary 95 Chapter 5 A changed government paradigm and the evaluation of public policy 5.1 Introduction 97 5.2 The starting point: government failures and (institutional) remedies 97 5.2.1 The establishment of clear and unitary policy goals 99 5.2.2 Performance related reward systems 100 5.2.3 Competition in the implementation of public policies 101 5.2.4 A balanced review system 101 5.3 Complexity and remediability 102 5.3.1 Complexity in public policy 102 5.3.2 Remediability 103 5.4 Government failures, transactions and institutions in public policy 107 5.4.1 Policy goals and governance 108 5.4.2 The implementation of public policy and governance Ill 5.4.3 Other governance structures 113 5.5 Evaluating technology policy in the Netherlands 115 Chapter 6 Technology policy in the Netherlands 6.1 Introduction 119 6.2 General background and developments in technology policy 120 6.2.1 The origins of technology policy in the Netherlands 121 6.2.2 Towards a more market-oriented approach 123 6.2.3 Technology policy as policy for economic change and competitiveness 124
6.3 Survey of main organisations, instruments and expenditures 128 6.3.1 Survey of main organisations in Dutch technology policy 128 6.3.2 Survey of main instruments of technology policy 132 6.3.3 Technology policy expenditures 136 6.4 Summary and some preliminary conclusions 139 6.4.1 Summary 139 6.4.2 Some preliminary conclusions 140 Chapter 7 Evaluation of technology policy in the Netherlands 7.1 Introduction 143 7.2 Evaluations commissioned by government organisations 143 7.2.1 The reports of the Dekker Committee 144 7.2.2 Evaluations.from the RAWB and AWT 145 7.2.3 Evaluation of the WBSO 148 7.2.4 Dutch technology policy in a European context 149 7.2.5 Report of the Netherlands Court of Audit 150 7.3 Academic Evaluations 151 7.3.1 Innovation and government policy 151 7.3.2 The technology race 152 7.3.3 Instruments of technology policy 153 7.3.4 Theoretical basis and focus of technology policy 154 7.3.5 Science and technology policy 152 7.3.6 Technology policy in the Netherlands 155 7.4 Recurring issues 156 7.5 Existing evaluations compared to our evaluation framework 160 7.6 Summary and conclusions 163 Chapter 8 Complexity and remediability in Dutch technology policy 8.1 Introduction 165 8.2 Complexity, remediability and policy goals 166 8.2.1 Information from the literature and policy documents 166 8.2.2 Complexity with respect to policy goals as perceived by policymakers 170 8.2.3 Conclusions on the complexity and remediability involved in setting policy goalsl71 8.3 Complexity, remediability and the implementations of Dutch technology policy 173 8.3.1 Information from the literature and policy documents 174 8.3.2 The complexity of implementation as perceived by policymakers 175 8.3.3 Conclusions on complexity, remediability and policy implementation 177 8.4 Complexity, remediability and the 'privilege grating system' 179 8.4.1 Information from the literature and policy documents 180 8.4.2 Complexity of the privilege granting systems perceived by policymakers 181 8.4.3 Conclusions on complexity, remediability and the privilege*grating system 181 8.5 Summary and conclusions 183 Chapter 9 Summary and Conclusions 9.1 Introduction 185 9.2 Summary 185 9.3 Conclusions on the propositions of chapters 2 and 3 195 in
9.4 Public Choice, Institutional Economics, New Public Management and the evaluation of public policy 197 9.4.1 Public Choice and the evaluation of public policy 198 9.4.2 Institutional Economics and the evaluation of public policy 199 9.4.3 New Public Management and the evaluation of public policy 200 9.4.4 A combined framework and the evaluation of public policy 201 9.4.5 The theories of the new government paradigm and evolutionary approaches 202 9.5 Recommendations 202 9.5.1 Recommendations concerning Dutch technology policy 202 9.5.2 Recommendations concerning the evaluation of Dutch technology policy 204 9.5.3 Recommendations for further research 204