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How to Build a Knowledge Economy and How to Know When You Have One


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Title: How to Build a Knowledge Economy and How to Know When You Have One

How to Build a Knowledge Economy and How to Know
When You Have One
  • John Dryden
  • Deputy Director
  • Directorate for Science, Technology and Industry,
  • Second OECD World Forum on "Statistics, Knowledge
    and Policy"
  • Istanbul, Turkey, 27-30 June 2007

What is a Knowledge Economy?
  • Related concepts
  • The New Economy
  • The Information Economy (bio-economy, etc.,)
  • The Service Economy
  • The Innovation Economy
  • The Knowledge-based Economy

Characteristics of a Knowledge Economy
  • High value-added goods and services mainly
    because of the knowledge content of their
    factor inputs
  • Performance of RD
  • High educational standards, human resources in
    ST, workforce skills
  • Strong innovation performance, innovations
    successful in the market
  • Intensive and broad use of generic technologies,
    esp. ICTs
  • Strong high-tech sectors, intensive use of
    knowledge-intensive services
  • Value chains highly globalised
  • Investment in knowledge now about the same as
    that in fixed capital (8pc of GDP)

How to Build One?
  • Copy the Lisbon Agenda?
  • Research and Development inputs, outputs and
  • Human Resources education, skills, mobility
  • Innovation and linkages between the actors
    open innovation
  • Encourage (production and) use of generic
  • Framework conditions open markets, absorptive
    capacity attention to the demand side
  • Open-ness and globalisation knowledge flows and
    the global enterprise

How to Know When Youve Got One?
  • Hard to measure, as the concept isnt tightly
  • Its the results in terms of growth, incomes,
    productivity and employment and other measures
    of well-being that take account of social and
    environmental wealth that count
  • Measures of international competitiveness
  • Doubts about utility of composite knowledge
    economy index
  • Need to take account of scope (intl, natl,
    regional, local) and aggregation (whole economy,
    sector, firm)
  • Need data and analytical toolkit to develop
    battery of indicators in main issue areas

The OECD STI Scoreboard
  • Published every other year, in print and online
  • Over 200 internationally comparable indicators
  • Free access on-line edition with Statlinks
    direct URL links to underlying Excel sheets used
    in the graphs.

STI Scoreboard 2005 available at Multilingual
STI Scoreboard 2007 Forthcoming in
October Comprehensive coverage of the different
facets of the knowledge economy in 9 sections
  • RD and investment in knowledge
  • Human resources in ST
  • Innovation policy
  • Innovation performance
  • ICT an enabler for the knowledge society
  • Particular fields
  • Internationalisation of ST
  • Global economic flows
  • Trade and productivity

New in the 2007 Scoreboard
  • 90 families of indicators, over 200 figures
  • Around 25 of new indicators compared to 2005
    edition. Examples
  • ST indicators in biotech, nanotech and
    environmental technologies
  • Patenting by universities, patenting by regions,
    science linkages in technology
  • Employment by skills and earnings by level of
  • International outsourcing of intermediary inputs
  • New multi-colour double-page layout for easy

Investment in Knowledge
RD, Software and Higher Education as a
percentage of GDP (2003)
  • The knowledge economy is about more than RD
  • OECD economies taken together, invested 5 of GDP
    in knowledge in 2003.
  • In US, close to half of this investment concerns
    software and higher education, whereas in EU
    countries the main component is RD investment.

RD Intensity as a percentage of GDP (2005)
  • China is now one of the major players in the
    global knowledge economy
  • In 2005, China stood just behind the Triadic
    countries in terms of share of RD in total RD
    RD investment represents 15 in total OECD RD.

OECD output of university and doctoral degrees
of all OECD graduates receiving their degrees
by region of graduation and field of study, 2004
  • European universities are a main source of
    science and engineering degrees in the world
  • 43 of total OECD university degrees originate in
    Europe, compared to only 22 for the United

Employment by Foreign Multinationals
  • Employment by foreign affiliates increased in
    France but decreased in the United States,
    Germany and Italy.

Labour productivity growth
Contributions of key activities to annual growth
of value added per person employed 2000 - 2005
  • Business services are a main catalyst of
    productivity in numerous OECD countries
  • In Canada, Greece, New Zealand, the United
    Kingdom and the United States, it contributed to
    over 55 of the labour productivity growth.

Broadband Access by households
  • Growing adoption by consumers but remaining
    divergences across countries
  • In 2006, Korea remained the country with the
    largest share of households with a broadband
    connection via a computer or mobile phone (94).

Patenting by Universities
Share of patents filed owned by universities
2002-04 in total inventions
  • Intellectual property policies for university
    innovation is giving results in the EU
  • In 2002-04, more than 10 of patents applied by
    US residents are owned by public institutions,
    whereas in Europe (25), this share was around 4.
  • With respect to 1996-98, EU (25) doubled the
    share of patents owned by universities whereas US
    has decreased it slightly.

Biotechnology firms activities
Percentage of biotechnology firms active by field
of application (2003)
  • Predominance of health-related applications in
  • The majority of firms are active in health (45),
    followed by agro-food (22), industry-environmenta
    l applications (19), and other (18).

Nanotechnology Patenting
Worldwide total number of nanotechnology patents
by application fields
Nanotechnologies have the potential to generate
diverse industrial applications Nanotechnology is
multifaceted. It consists of a set of
technologies on the nanometre scale rather than a
single technological field.
  • The next edition of the STI Scoreboard will
    appear in October 2007