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OECD Innovation Strategy

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The OECD Innovation Strategy: Findings and Implications Mario Cervantes, Dirk Pilat and Karen Wilson, OECD / STI Stockholm, 11 February 2010 * * * * * * ... causing ... – PowerPoint PPT presentation

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Title: OECD Innovation Strategy


1
The OECD Innovation Strategy Findings and
Implications
Mario Cervantes, Dirk Pilat and Karen Wilson,
OECD / STI Stockholm, 11 February 2010
2
Overview
  • The OECD Innovation Strategy
  • The innovation imperative
  • The changing nature of innovation
  • Some broader messages

3
1. OECDs Innovation Strategy
4
The OECD Innovation Strategy Cutting across many
policy areas
Competition
5
2. The Innovation Imperative
6
Pre-crisis slowdown in productivity
7
Innovation offers the largest potential for
catching up
8
The need to sustain innovation has grown due to
the crisis.
8
9
3. The Changing Nature of Innovationwhat, how,
where, why who
10
What innovation encompasses has changed
  • Expansion to services, including non-market
    services like public sector services
  • Broader than just RD to include non-RD
    innovation like design, marketing, organisational
    innovation
  • Applied to social issues e.g. climate change
    not well supported by market mechanisms

11
to include non-tech innovators
Share of non-technological innovators by sector
Source OECD based on Eurostat, CIS-2006 (April
2009) and national data sources.
12
a wide cross section of industries
Share of business RD by technological intensity
(manufacturing, 2006)
13
...and applications to global issues.
Patenting in climate mitigation technologies
relative to all sectors
(indexed on 19801.0, Annex 1 ratification
countries)
14
Implications from the broadening of innovation
  • Growing importance of education and training
    hard and soft skills, including entrepreneurship
  • Need to provide space for innovation to flourish
  • Competition empowering consumers
  • Solid, predictable institutional framework that
    supports entrepreneurs
  • Recognition that a bundle of investments are
    needed for innovation tech non-tech.

15
How innovation is conducted has changed
  • Increasingly at the intersection / interaction
    of separate borders disciplines geography and
    institutions
  • Cost pressures, competition and desire to reduce
    risk have led to more open / collaborative
    strategies
  • Premium and competitive advantage attached to
    tacit knowledge know-how, organisational
    capital, access to networks.

16
There is more collaboration among scientists...
Trends in co-authorship in scientific publications
Domestic single authors
16
16
17
...and between firms...
Share of companies collaborating in innovation
activities, by size
Source OECD based on Eurostat, CIS-2006 (April
2009) and national data sources.
18
who are employing open innovation strategies
for competitive advantage.
  • Items shipped on behalf of sellers who utilized
    Fulfillment by Amazon (FBA) 3x from 2008
  • Amazon Web Services (AWS) 300k users
  • 100k approved apps, up from 65k in August
  • estimated 2.5bUS iPhone apps economy

Q3 09
Q3 09
18
www.gigaom.com 27/08/09 How Big is the iPhone
App Economy?
19
Implications from a more open mode of innovation
  • Erect bridges between the different parts,
    forming or joining a network not necessarily
    more or new hard infrastructure.
  • Soft skills are needed that can traverse
    disciplines, cultures and organisations.
  • Building networks through labour mobility.
  • Use of ICT to build networks informatics as a
    multidisciplinary field and public depositories
    of information as a platform for innovation
  • Developing knowledge networks and markets
  • Providing a modern and reliable knowledge
    infrastructure and platforms for innovation
  • Facilitating knowledge flows and fostering the
    development of knowledge networks and markets

20
Where innovation occurs has changed
  • MNEs still play a huge role but increasingly
    more than just D abroad
  • Increase in cross-border links
  • Emergence of a global labour market for the
    highly skilled
  • Rise of China and India.

21
In some OECD countries, foreign affiliates
carry out more RD than national-based firms
22
...as global innovation networks emerge...
23
...labour markets for the highly-skilled
become global
Growth in the number of tertiary education
students enrolled outside their country of
citizenship worldwide (millions)
23
Source OECD and UNESCO Institute of Statistics
24
and new global players emerge...
Contributions to growth in global RD (in billion
constant US PPP and )
1996-2001
2001-2006
Note (1) Australia, Canada, Iceland, Korea,
Mexico, New Zealand, Norway and Turkey
(2) Argentina, Brazil, India, Israel, Russian
Federation, Singapore, South Africa, Chinese
Taipei Source OECD.
25
...that alter the topography of innovation.
Broad based Leaders
Narrow Leaders / Adopters
Adopters / Followers
link
25
26
Implications of global networks of innovation
  • Build absorptive capacity skills, institutions,
    access to networks
  • Importance of services as a means of capturing
    value locally gaining access to lead-users
  • Universities are an essential node in innovation
    systems that can be the glue between actors, a
    local anchor into global networks and a magnet
    for global talent.
  • Building on existing strengths for dynamic
    comparative advantage through innovation.

27
Why innovation occurs has changed
  • Global Challenges climate change, health care,
    food security are exerting a strong
    demand-pull
  • Innovation is an eco-system not only the supply
    side (RD, facilities, SET) but also the demand
    side (procurement, vouchers and lead users).

28
ICT (especially the Internet) has altered
the nature of innovation...

28
28
29
...and global challenges are exerting a large
demand-pull... Potential technological
contributions to CO2 emission reductions
29
Source IEA.
30
...raising the awareness of the demand-side of
innovation.
31
Implications of the changing drivers of innovation
  • Harnessing innovation to address global
    challenges
  • combination of getting prices right and
    stimulating innovation
  • stable and long-term policy horizon
  • international science and technology
    co-operation
  • support for capacity building in developing
    countries
  • incentives for the adoption of appropriate
    technologies
  • Demand and supply side policies

31
32
Who the actors are in the innovation system has
changed
33
...by broadening to include a wide range of
actors...
34
a range of Ministries...
Finlands Governance of Innovation Policy
34
35
and many levels of government.
36
which raises issues of how to govern
policies for innovation.
  • Need for strong political leadership
  • Need to clearly delineate local, regional
    national roles to avoid duplication, and build
    coherence.
  • Need for measurement and evaluation frameworks to
    support policy.

36
37
4. Some broader messages
37
38
  • Policies for supply and demand
  • Responding to a changing Why of innovation
    Policies for innovation need to focus on meeting
    the demands of society.
  • The objectives of innovation (growth,
    sustainability, health, ) are achieved through
    diffusion and take-up
  • Most public policy is aimed at the creation of
    knowledge.
  • Need to better join up push and pull
    policies
  • Empowering people to create knowledge and apply
    knowledge
  • Protecting IPR and creating value from IPR
  • Getting prices right to create markets for
    environmental innovation and policies that can
    create radical innovations and breakthroughs.

39
  • Seizing benefits at the local level
  • Setting priorities and creating excellence and
    critical mass
  • Strengthen and capitalise on local strengths
    knowledge institutions, people, services, social
    factors, culture, etc.
  • An open environment
  • Develop a joint vision and strategy for long-term
    investment

40
  • The roles of government and business
  • In many cases, the role of markets can be
    strengthened to unleash demand and foster
    innovation e.g. through getting prices right,
    regulatory reform, smart use of public
    procurement, consumer involvement, etc.
  • At the same time, governments play an important
    role in driving innovation in the post-crisis
    environment
  • Need for a true public-private partnership

41
  • The 5 areas of action in the Innovation Strategy
  • Empower people to innovate.
  • Unleash innovation in firms
  • Invest in knowledge creation and encourage its
    diffusion
  • Improve the frameworks for innovation to address
    global challenges
  • Improve the governance of policies for innovation

42
The Innovation Strategy in 2010
  • A short Ministerial paper setting out the
    challenge and priorities for action on
    innovation, combined with a set of policy
    principles
  • A compendium of policy-relevant indicators that
    will enable countries to benchmark themselves on
    a range of policies and measurements
  • Synthesis and background reports, providing
    evidence on key factors and drivers of innovation
  • The beginnings of a policy handbook, that will
    enable countries to examine their own performance
    and system, and provide tools and examples to
    take action

43
and beyond
  • Further work could involve
  • Implementing and monitoring action
  • Country reviews
  • Moving ahead on the measurement agenda
  • Addressing remaining questions
  • Focusing on specific questions, e.g. green growth
    and innovation.

44
For further information
  • E-mail comments ideas
  • Dirk.Pilat_at_oecd.org
  • Mario.Cervantes_at_oecd.org
  • Karen.Wilson_at_oecd.org
  • Keep abreast
  • www.oecd.org/innovation/strategy
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