The influence of causation and effectuation logics on targeted policies: the cases of Singapore and Israel

We examine the causation and effectuation logics for implementing targeted biotechnology policies using two case studies: Singapore (causation) and Israel (effectuation). After more than a decade of implementing targeted biotechnology policies, both Singapore and Israel have failed to create fully fledged biotech clusters. Singapore has been unsuccessful in creating vibrant entrepreneurial activity that will support its transformation into a knowledge economy. Israel has failed to turn its 1000 small, dedicated biotechnology firms into a substantial engine of growth and employment. The paper questions how these two policy approaches influenced the targeting of the biotechnology sectors and identifies the limits of these approaches in supporting targeting. We conclude that a combination of the two logics is needed, especially when targeting complex sectors with a yet unknown development path.

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