Incentive-/market-based approaches
Depending on the stage of technology maturity, different blends of incentives and risk sharing by governments may be required. This is particularly relevant during the easier stages of technological development. Some interventions could involve positive incentives, for example early-stage R&D grants and awards; collaborative R&D investment; state-funded academic research, incubators, demonstration plants or pilot projects; government loan guarantees for venture capital investments aimed at scale-up; tax credits, accelerated depreciation allowance and capital gains tax breaks for R&D, production and investment, and equity partnerships with preferential or low-interest lending for asset finance during early commercialization. Other interventions could be aimed at removing perverse incentives, such as subsidies that create skewed playing fields. Specific incentive-based policies and measures could include ‘the following;