Managing diversity in a system of multi-level governance: the open method of co-ordination in innovation policy

This article explains why open policy co-ordination has not yet gone very far in innovation policy. We claim that the multi-level character of innovation policies and the diversity of national innovation systems are major stumbling blocks to applying the OMC in this policy area. So far, these two peculiarities of innovation policies prevented ‘vertical policy co-ordination’ and ‘horizontal policy learning’, which have both been heralded as the main goals of applying the OMC. Acknowledging these features of innovation policies, this article argues that the OMC is only likely to constitute a valuable mode of governance if national and regional specificities are carefully taken into account, if actors at each territorial level are considered during the entire policy process, and if qualitative benchmark indicators are developed which consider the diversities of national innovation systems and regional idiosyncrasies. We explore our argument with respect to Austria, Germany, the Netherlands and Sweden.