Les politiques de recherche et d’innovation dans les pays de l’OCDE Mme Sandrine KERGROACH, Direction de la Science, de la Technologie et de l’Innovation, Organisation de Coopération et de Développement Economiques (OCDE), France

1. Les politiques de recherche
et d’innovation dans les
pays de l’OCDE
Les Perspectives de STI de l’OCDE 2014
Sandrine KERGROACH
Direction de l’OCDE de la Science, Technologie et Innovation
JOURNEES ANPR - Le paysage de la Recherche et de
l’Innovation en Tunisie : Etat des lieux et Perspectives,
Hammamet, 12 Mai 2015

2. Outline
• OECD STI Outlook: a guide through complexity.
• Global trends in STI
– A modest recovery
– Shifts in global STI landscape
– Persistent ‘Grand’ challenges
• Adjustments in STI policies
– A “new deal” for innovation
– Public support to firms
– Public research policy
• For further information: OECD infrastructure for innovation
policy analysis and a few words on international cooperation for
building capacity: EC and World Bank.
2

3. OECD STI Outlook: 20-year tradition
• “What’s new in the field of
science, technology and
innovation policy? “
• International review of key recent
trends in STI for the STI policy
community and analysts
• Based on latest STI policy
information and indicators
• OECD Flagship publication
3

4. Drawing on a unique policy questionnaire
4
Country coverage
of the STI Outlook
from 2008 to 2014
Response rate 2014: 93%
2012: + Colombia, Egypt
2014 : + Costa Rica, Latvia, Lithuania, Malaysia, Peru
European Commission
joint survey in 2016
53 countries

5. The three components of the STI Outlook 2014
5
COUNTRY
PROFILES
POLICY
PROFILES
OVERALL STI PERFORMANCE AND
POLICY TRENDS

6. Selected trends for STI and national STI
policies
6
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistent ‘grand’ challenges
Trend 4 • Adjustments in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

7. The recovery remains modest and
contrasted
7
GDP growth
Annual growth rate, 2003-13
and projections for 2014 and
2015
Source: OECD Economic Outlook
n.95 Database, May 2014.

8. The BRICS has lost earlier momentum
8
GDP growth
Annual growth rate, 2003-
13 and projections for 2014
and 2015
Source: OECD Economic Outlook
n.95 Database, May 2014.

9. Innovation in the crisis
9
Annual growth rate of GDP and GERD, OECD, 1993-2013 and projections to 2015
Source: OECD Economic Outlook no95 Database, May 2014; OECD Main Science and Technology
Indicators (MSTI) database, June 2014.

10. The buffer effect of public R&D
expenditure has faded
10
Annual growth rate of GDP and GERD, OECD, 1993-2013 and projections to 2015
Source: OECD Economic Outlook no95 Database, May 2014; OECD Main Science and Technology
Indicators MSTI database, June 2014.

11. Knowledge-intensive investments have
been relatively preserved
11
Source: OECD MSTI, June 2014, OECD National Accounts Database, April 2014.
recovered earlier than in physical assets
Reluctance of
firms to
engage profits
and build new
production
capacity
Corporate
gross fixed
capital
formation
Central role of
knowledge-
based assets
in market
competition

12. 12
Labour productivity deteriorated
significantly
Source: OECD Productivity Database, May 2014.

13. Budgets are levelling off or receding…
13
Public R&D budgets (GBAORD), as % of GDP, 2013 compared to 2011
Source: OECD estimates based on OECD MSTI database, June 2014.

14. The shock of the crisis is not fully
absorbed
14
• A strong resurgence in R&D and innovation in the next years is
unlikely
• Governments’ financial capacity to intervene in the field of STI
is limited due to budgetary pressure
• Future growth in innovation activities is likely to be primarily
driven by business investments.
 Maintaining jobs and economic growth in open
economies requires greater competitiveness (48
million people unemployed in the OECD, the fear of “the
middle income trap”)

15. Selected trends for STI and national STI
policies
15
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistent ‘grand’ challenges
Trend 4 • Adjustments in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

16. Global value chains (GVCs) : trade …
16
Economies participate to GVCs both as users of foreign inputs and as suppliers
of intermediate goods and services

17. GVCs: fragmentation of production
processes globally, including R&D
17

18. GVCs have changed the nature of global
competition
• Competitive advantage increasingly driven by innovation….
• … in turn driven by investments in intangibles (KBC beyond
R&D)
18
Computerised
information
• Software
• Databases
Innovative
property
• Patents
• Copyrights
• Trademarks
• Design
Economic
competencies
• Brand equity
• Firm-specific
human capital
• Business
networks
• Organisational
know-how
 Reach segments with higher valued added
(and job creation) in GVCs

19. A changing global R&D landscape
19
GERD, million USD 2005 PPP, 2000-12 and projections to 2024
Source: OECD estimates based on OECD MSTI database, June 2014.
R&D intensity,
% GDP (2012)
EU28 = 1.97%
China = 1.98%

20. International collaboration networks in
science
20
Internationally co-authored documents, 2011 and 1998 (whole counts)
Source: OECD (2013), OECD Science, Technology and Industry Scoreboard 2013, Paris.

21. Global competition for knowledge-
based assets is on the rise
21
• Emergence of globally interconnected innovation hubs
• Growing worldwide competition for / availability of
talent and knowledge-based assets and the increasing
international mobility of such assets.
• GVCs have changed the nature of global competition:
companies and countries no longer only compete for market
share in high value-added industries, but also increasingly for
high value-added activities within GVCs.
 Innovation is more than ever important for strategic
positioning in global value chains

22. Selected trends for STI and national STI
policies
22
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistent ‘grand’ challenges
Trend 4 • Adjustments in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

23. Challenges and opportunities
23
• The transition to a low-carbon economy and the
preservation of natural resources would require technological
breakthroughs, deployment of existing technologies and new
infrastructures, systemic changes (behaviours, governance).
• Ageing would require new technologies/services to assist the
elderly remain active and autonomous longer, assist care providers,
funding and better coordination between social care and health
services.
• Income inequality has increased during the crisis. ICTs offer
opportunities to support inclusive innovation. Education and
training policies will be essential to avoid exclusion.
 Raising the status of innovation in the policy portfolio
 Broaden the scope of policy intervention

24. Global trends in innovation policies
24

25. Selected trends for STI and national STI
policies
25
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistant ‘Grand’ challenges
Trend 4 • Adjustments in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

26. • Knowledge triangle at the top of policy agenda
• Broaden the scope of policy intervention :
– Multiple goals (industrial transformation, inclusive innovation,
grands challenges etc.)
– Going beyond the scope of national innovation policies
• Growing complexity:
– Growing number of STI actors (ministries, agencies, non-state
actors) involved in the design and implementation of STI policy
– Multi-level governance
– In search for synergies with the private sector, strategic
P/PPs and joint investments.
– Larger portfolio / mix of policy instruments
• Evaluation is key but would require a ‘whole of government’
approach.
26
The future of innovation policies

27. Building attractive ecosystems
27
Source: Country responses to the STI Outlook policy questionnaire 2014.
National STI policy priorities, country self-assessment, 2012-14

28. Good framework conditions to encourage
the reallocation of resources
28
Product market regulations Bankruptcy law Employment protection legislation
AUS
AUT
BEL
CAN
CZEDEU
DNK
ESP
FIN
FRA
GBR
GRC
HUN
IRL ITA
JPN
LUX
NLD
POL
PRT
SWE
USA
0
0.02
0.04
0.06
0.08
0.1
0.12
0 0.5 1 1.5 2 2.5 3
PMR
KBC Investment to GDP
y = -0.031x + 0.116
T-statistics: -3.92***
AUS
AUT
BEL
CAN
CZE
DEU
DNK
ESP
FIN FRA
GBR
GRC
HUN
IRL ITA
JPN
LUX
NLD
POLPRT
SVN
SWE
USA
0
0.02
0.04
0.06
0.08
0.1
0.12
0 5 10 15 20 25
Bankruptcy law
y = -0.002x + 0.086
T-statistics: -3.87***
KBC Investment to GDP
AUS AUT
BEL
CAN
CZE
DEU
DNK
ESP
FIN
FRA
GBR
GRC
HUN
IRL
ITA
JPN
NLD
POL
PRT
SWE
USA
0
0.02
0.04
0.06
0.08
0.1
0.12
0 1 2 3 4 5
EPL
y = -0.031x + 0.116
T-statistics: -3.92***
KBC Investment to GDP
Product market
regulations Bankruptcy law
Employment
protection
legislation
• KBC investments to GDP
• The accumulation and optimal use of KBC requires experimentation
=> effective reallocation of resources + well-functioning debt and
equity funding systems

29. A “new deal” for innovation
29
Source: Country responses to the STI Outlook policy questionnaire 2014.
Substantial changes in various STI policy areas , country self-assessment, 2012-14

30. Selected trends for STI and national STI
policies
30
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistant ‘Grand’ challenges
Trend 4 • Mutation in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

31. Governments have increased financial
support to business R&D since 2007
31Source: OECD, MSTI Database, June 2014; OECD data collection on R&D tax incentives, 2013, and
country responses to the OECD STI Outlook policy questionnaire 2014.
In most countries,
10% to 20% of
business R&D is
funded by public
money.
As a % of
total BERD

32. Driven by more generous R&D tax
incentives -> tax competition?
32Source: OECD, based on OECD R&D tax incentive data collection, 2013; country responses to the
OECD STI Outlook policy questionnaire 2014 and OECD MSTI Database, June 2014

33. Better access to finance remains an
issue for OECD economies
33
Substantial changes in various STI policy areas, country self assessment, 2012-14
Source: Country responses to the STI Outlook policy questionnaire 2014.

34. More targeted approach in the policy mix
for business R&D and innovation
34
Source: Country responses to the STI Outlook policy questionnaire 2014.
Changing balance in the policy mix for business R&D and innovation, based on own country ranking, 2014

35. More SME-targeted tax schemes
35
Source: Adapted from OECD (2013), OECD Science, Technology and Industry Scoreboard 2013.
Profit-making scenario Loss-making scenario
Generosity of tax subsidy for R&D expenditures, 1- B-index, 2013

36. The policy debate on the legitimacy of
industrial policy has resurfaced
36
Substantial changes in various STI policy areas , country self assessment, 2012-14
Source: Country responses to the STI Outlook policy questionnaire 2014.

37. Selected trends for STI and national STI
policies
37
Trend 1 • A modest recovery
Trend 2 • Shifts in global STI landscape
Trend 3 • Persistant ‘Grand’ challenges
Trend 4 • Mutation in STI policies
Trend 5 • Public support to firms
Trend 6 • Public research policy

38. Challenges of public research policy
38
• Governance and coordination: more autonomous
universities, multiple stakeholders (industry, local actors,
students etc.)
• Globalisation and openness: keep pace with
knowledge/technology development and compete for talents and
assets
• Turning science into business: the ‘third’ mission of
universities
• Technology convergence: require multidisciplinary research
arrangements, platforms, shift away from ‘silo’ approach in
doing/funding/evaluating research.
• Ageing workforces: skills gap to be increased and some
evidence of disinterest in science among youth.
• Funding public research in times of budgetary austerity

39. Focus on excellence
39
• Research infrastructures: through national strategy, long-term
planning (roadmaps etc.), and investments in capacity and platforms
• New approaches in funding:
• Prioritisation and concentration of resources to reach a critical of
mass
• More competitive funding: project-based versus ‘block’ grants, and
performance-based block funding.
• Research Excellence Initiatives (REIs): new funding instrument
that combines stability of long-term grants and selectivity through
competition-based processes. Multidisciplinarity.
• Full economic cost recovery.
• Evaluation has taken on greater importance.
• Internationalisation of universities: recent initiatives to attract
talents and raise international visibility (joint programmes, campus
offshore, ‘MOOCS’)

40. Knowledge transfer is a central objective
of public research
40
Substantial changes in various STI policy areas , country self assessment, 2012-14CC
Source: Country responses to the STI Outlook policy questionnaire 2014.

41. OECD infrastructure for innovation policy
analysis
41

42. For further reading… An infrastructure for
knowledge sharing and building
Measurement
work
42
Country reviews
of innovation
policy
(peer reviews)
STI Outlook
(Policy database,
benchmarking tools)
OECD Committees
2015-16: impact assessment,
inclusive innovation, foresight

43. The IPP is a web-based learning tool on innovation policy for policy makers
and experts. Co-developed by the OECD and the WB.
43
Coordination across international
Organisations: EC and WB
• Taxonomies and common standards to support a dialogue between 2
global platforms: OECD/WB IPP and EC Policy Support Facility (PSF).
• STI Outlook Policy Database: joint development with the EC – next
update: June 2015
• Information sharing:
– Publications, briefs, policy/working papers, case studies etc. (>2 000)
– STI e-Outlook (profiles, policy database, benchmarking tools) – next
release : June 2015
– IPP.Stat : indicators and visualisation – next update: June 2015
• Identifying issues and solutions: Diagnostic tools to support policy decision
process
• Exchanging and networking: Communities of Practices

44. THANKS!
44
www.oecd.org/sti/outlook
www.innovationpolicyplatform.org/content/STIe-Outlook-2014
(forthcoming)
www.innovationpolicyplatform.org/oecd-stio-forward-look
(forthcoming)
www.innovationpolicyplatform.org
www.oecd.org/innovation/reviews
Contact: Sandrine KERGROACH
sandrine.kergroach@oecd.org