Andrew Wyckoff, OECD Public Policy Dialogue on Innovation in Latin America Guanajuato, Mexico 1 24 March 2011
The innovation imperative Why now?
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Innovation is a driver of growth... Contributions to labour productivity growth, 1995-2006, in % %
Labour quality
Physical capital deepening
Multifactor productivity
Intangible capital deepening
7 6 5 4 3
2 1 0 -1 -2
Source: Data on intangible investment are based on COINVEST [www.coinvest.org.uk] and research papers, 2009.
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‌ that can help address global social challenges neglected by markets...
4
4
...and offers the largest potential for catching up. Decomposition of cross-country differences in GDP per capita into their determinants, 2005 (United States = 100) GDP PPP per capita United States
TFP
Human capital
Physical capital
Employment
100.0
100.0
100.0
100.0
100.0
Canada
83.5
72.0
103.3
105.8
106.0
Japan
72.6
52.6
100.4
130.7
105.1
China
9.8
13.6
57.3
105.2
119.5
India
5.2
12.7
47.7
98.3
87.1
Brazil
20.5
29.3
70.1
103.1
96.8
Russian Federation
28.6
31.5
84.9
97.4
99.3
EU27 + EFTA
64.7
67.8
91.2
114.1
91.3
Total World
22.8
27.9
64.2
104.2
95.8
Source: OECD.
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What is OECD’s Innovation Strategy?
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A “horizontal�approach Cutting across policy areas Education & skills
Industry and entrepreneurship
Environment Development Tax Competition
Science and technology
Exploring innovation from a wide range of policy perspectives
Investment
Information and communications
Statistics Public governance
Trade Consumer policy
Territorial development
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What innovation encompasses has broadened.
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Innovation includes a bundle of tech & non-tech innovations ...
9 Source: IMD (2000) Innovation and Rennovation: The Nespresso Story, IMD046, 03/2003
...that require a range of different disciplines interacting. Scientific publications cited by “green� patents
Chemical Engineering
Material Science
Chemistry
Physics Legend:
14.2%
9.5%
Engineering
10.6%
17.4%
10.5%
4.9%
Green Technology
Patent-science link via citations (100% = all citations)
Energy
Scientific Papers
7.5%
4.8% 6.6% Immunology and Microbiology
Patents
Biochemistry, Genetics and Molecular Biology
3.7% Agricultural and Biological Sciences
5.7% Earth and Planetary Sciences
Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris.
Environmental Science 10
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How innovation is conducted has become more collaborative and “open�.
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There is more collaboration among scientists... Trends in co-authorship in scientific publications Thousands 300
Domestic co-authorship 250
200 Single-institution co-authorship 150 International co-authorship
100
50 Single author
2007
12 12 12
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
0
...and universities & PROs... EPO joint business and university or PROs patent applications by priority year
600
500
400 national 300
200 international 100
0 1980
13
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
...and between firms. Firms with national/international collaboration on innovation, 2004-06 As a percentage of innovative firms %
National collaboration only
International collaboration
60 50 40 30 20
Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris based on OECD, Innovation microdata project.
Italy
Germany
Spain
Portugal
Korea (2005-07, manufacturing)
Australia (2006-07)
China
Canada (2002-04, manufacturing)
Japan (1999-2001)
Ireland
United Kingdom
Iceland (2002-04)
New Zealand (200607)
Luxembourg
Denmark
Estonia
Norway
Belgium
South Africa (200204)
Austria
Czech Republic
Sweden
Chile
Finland
0
Netherlands
10
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Where innovation occurs has changed becoming more global.
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Poland Poland
Sweden Sweden
Belgium Belgium
France France
RussianFederation Federation. Russian Italy Italy Netherlands Netherlands Switzerland Switzerland Germany Germany
Japan
Spain Spain
Japan Korea Korea United Kingdom United Kingdom
United United States States
Canada Canada
ChinaChina
Australia Australia
India India
Brazil Brazil16
Scientific publications and co-authored articles
The alignment of innovation has shifted.
UK
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Policy Implications for LA •
Innovation is broader than S&T – it is a system. Non-tech as a key enabler;
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Better policy coherence is essential across a wide set of policies. (7)
•
Empower businesses: foster skills (5), provide incentives for business (3,6)
•
Universities as a node; glue between actors, a link globally and a magnet for global talent (4).
•
Diagnose, evaluate & monitor through improved measures (measurement agenda) (1,8).
Innovation-related work: what’s next?
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Current work on innovation: Handbook on Innovation Policies • A self-diagnostic tool + best practice policies web-based platform; • Compilation of thematic work & reviews of innovation policy at the country-level; • Topics under development: – Public Research Institutes; – Financing innovation; – Clusters and regions; etc. 20
Current work on innovation: Refining & developing Indicators A measurement agenda
• Non-tech innovation; • K creation & flows
• Public sector innovation Measuring Innovation: A New Perspective (2010) proposes a new set of indicators and identifies measurement gaps. www.oecd.org/innovation/strategy/measuring
Going Forward: Possible LACII / PILAC Collaboration • Diagnosis of LAC Innovation systems
• Policy analysis of key LAC issues: – Higher Education and Public Research Institutes; – Incentives for business R&D and innovation; – Governance of innovation policies
• Identify common work on measurement. – Manuals: Frascati, Oslo, Bogota – Surveys: UIS, RICYT – Analysis: ECLAC / microdata
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