Innovation Policy Evaluation – Challenges and Roads Ahead

The innovation literature has established that successful innovation processes are often based upon collabo-ration and networks. The innovation system thinking emphasizes networks but also their supporting informal institutions, learning processes, and the relations between actors in the system. Despite the importance of networks, evaluation studies have been sparse regarding investigating effects of these as well as on the broader criteria to evaluate the innovation networks and functioning of the system. This paper discusses what are such criteria for evaluating innovation policies that rely on enhancing system connectivity and repair sys-tem failures? By way of illustration, and as a mean to be specific on these criteria, the paper discusses the possible rationale for governments to support business angel networks (BAN) and what criteria to apply when evaluating such networks. It is found that applying traditional evaluation criteria for assessing BANs may provide only a partial picture. The broader benefits of an angel network include both direct and indirect effects. In a case of the Danish Business Angel Network it is illustrated that it was closed down because of lack of understanding of the im-portant effects that go beyond the immediate effectiveness. Other evaluation perspectives, that include also effects at a system level, would probably have resulted in a different decision. Implications for innovation policy evaluation are derived.