In this episode of Innovation Matters, we delve into the complex interplay between government policies, market dynamics, and transformative innovation with Dr. Anders Kärnä. As we navigate through the nuances of economic development and public policy, Dr. Kärnä offers a critical analysis on how governments can either foster or hinder innovation through industrial policies. Drawing from historical examples and current economic theories, this episode explores the delicate balance between governmental intervention and market freedom that underpins successful innovation ecosystems worldwide.