Legal-institutional design effects on mission-oriented dynamic capabilities

Abstract

While policymakers and academics have advocated for mission-oriented innovation policies to address global challenges, implementing those policies requires strong adaptive capabilities in innovation agencies, which are influenced by their legal-institutional design. This paper explores how the legal-institutional design of two Brazilian innovation agencies shapes organizational routines that affect the development of dynamic capabilities needed for missions. The findings enhance the understanding of these designs, offering insights for policymakers to (re)design more effective innovation agencies.