INNOVATION AND TERRITORIAL DEVELOPMENT:
ANYTHING NEW UNDER THE SUN?
REFLECTIONS “ON AND FOR” LATIN AMERICA

Annalisa Primi...
A changing global economic landscape

=> Marco-economic power shift & changes in societal
demands and aspirations
=>Micro-...
The world is changing
Marco-economic power shift & changes
in societal demands and aspirations
OECD member countries

Non ...
CHINA IS RESHAPING THE GLOBAL
COMPETITIVE SCENARIO
World top 20 manufacturers, 2010
Country share in total world manufactu...
Micro-economic changes
Prioritizing innovation: a key challenge (1)

Research and development investment and private secto...
R&D
as %
of
GDP

R&D investment financed by the private sector
Micro-economic changes
Changes in the organisation of
production and new forms of FDI
TOP 20 WORLD CITIES THAT OUTSOURCE “...
Top 20 world cities for reception of innovative FDI, 2005-2007

Source: Primi and Skowronnek (forthcoming) on the basis of...
Top 20 world cities for reception of innovative FDI, 2010-12
Micro-economic changes
New forms of collaboration and
networks (global and local linkages)

TELECOM
A variety of
collabora...
WHAT HAVE WE LEARNED FROM OUR WORK
WITH PARTNER COUNTRIES ?
Institutions and governance matter
Ex. Territories are increas...
WHAT HAVE WE LEARNED FROM OUR
WORK WITH PARTNER COUNTRIES ?
Policies matter
Ex. Latin American countries are starting to s...
Learning in innovation and regional development
policies
Categories

Definition

Learning from successful experiences

Lat...
Changing roles and approaches to the “territory”
What do we observe in Latin America and in other
emerging regions?
The is...
The OECD Development Centre work on innovation
and territorial development

Perspectives on Global
Development 2013

Shift...
Upcoming SlideShare
Loading in …5
×

Innovation and Territorial Development: anything new under the sun? Reflections "on and for" Latin America / Annalisa Primi, Centro de Desarrollo de la OECD

638 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
638
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Innovation and Territorial Development: anything new under the sun? Reflections "on and for" Latin America / Annalisa Primi, Centro de Desarrollo de la OECD

  1. 1. INNOVATION AND TERRITORIAL DEVELOPMENT: ANYTHING NEW UNDER THE SUN? REFLECTIONS “ON AND FOR” LATIN AMERICA Annalisa Primi Economista- Centro de Desenvolvimento da OCDE annalisa.primi@oecd.org Brasilia, DF 21 de Março de 2013 Semana do Desenvolvimento Regional Mesa de debate “Educação, Ciência, Inovação e Desenvolvimento Regional: Experiencias Latino-Americanas
  2. 2. A changing global economic landscape => Marco-economic power shift & changes in societal demands and aspirations =>Micro-economic changes (organisation of production, new forms of FDI, increased relevance of “innovation”, new forms of collaboration&networks) =>Changes in development and policy models Changing role and approaches to the “territory”
  3. 3. The world is changing Marco-economic power shift & changes in societal demands and aspirations OECD member countries Non OECD member economies 70 Share of global GDP, PPP (%) 65 60 63% 57% 55 50 45 40 43% 37% 35 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 30 Source: OECD Development Centre
  4. 4. CHINA IS RESHAPING THE GLOBAL COMPETITIVE SCENARIO World top 20 manufacturers, 2010 Country share in total world manufacturing value added % 1990 2000 2010 30 25 20 15 10 5 0 Note: Manufacturing refers to industries belonging to International Standard Industrial Classification (ISIC) divisions 15-37. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the ISIC, revision 3. Source: United Nations Statistical Division, National Accounts Main Aggregates Database, March 2012.
  5. 5. Micro-economic changes Prioritizing innovation: a key challenge (1) Research and development investment and private sector commitment in selected countries, 2009 4.0 GERD in USD (PPP), constant 2005 prices Korea 3.5 Japan 100 Bn R&D invesment (% of GDP), 2009 3.0 Singapore Germany United States 2.5 10 Bn OECD Average = 2.3 % 2.0 France 1 Bn China United Kingdom 1.5 Brazil Russian Federation 1.0 India Argentina 0.5 Thailand Indonesia 0 10 20 Malaysia Costa Rica 30 40 50 60 70 80 90 100 R&D investment financed by the private sector (%), 2009 Source: OECD(2013), Perspectives on Global Development 2013 (forthcoming). Latin America/ Caribbean Asia South Africa Morocco Kenya 0.0 OECD Africa
  6. 6. R&D as % of GDP R&D investment financed by the private sector
  7. 7. Micro-economic changes Changes in the organisation of production and new forms of FDI TOP 20 WORLD CITIES THAT OUTSOURCE “INNOVATIVE” ACTIVITIES 2010-12 Number of Jobs Note: Research and development refers to projects that involve the discovery, design, or development of a product (i.e. technical design centre). Design, development & testing refers to projects that involve design, development or testing of a product (i.e. A software company opening a development centre would be classified in this category). To be included in research and development the project must include pure (technical) research.
  8. 8. Top 20 world cities for reception of innovative FDI, 2005-2007 Source: Primi and Skowronnek (forthcoming) on the basis of fDi Markets. A service from the Financial Times Ltd., 2013.
  9. 9. Top 20 world cities for reception of innovative FDI, 2010-12
  10. 10. Micro-economic changes New forms of collaboration and networks (global and local linkages) TELECOM A variety of collaboration models coexist across sectors and regions Ajmone Marsan, G. and A. Primi (2012), “Tell Me Who You Patent With and I'll Tell You Who You Are: Evidence from Inter-Regional Patenting Networks in Three Emerging Technological Fields”,,OECD Publishing.
  11. 11. WHAT HAVE WE LEARNED FROM OUR WORK WITH PARTNER COUNTRIES ? Institutions and governance matter Ex. Territories are increasingly relevant for production development policies and innovation VARIETY IN REGIONAL INSTITUTIONAL FRAMEWORKS, SELECTED DEVELOPING ECONOMIES National multilevel governance setting Unitary countries Degree of planning and financing responsibilities in industrial and innovation policy of subnational governments Federal countries Brazil India Significant Medium (Examples in OECD countries: Germany, Canada, Switzerland, United States) Argentina Malaysia The Russian Federation (Examples in OECD countries: Mexico) Elected regional authorities Non-elected regional authorities Examples in OECD countries: Italy, Spain) China Colombia (Examples in OECD countries: France, Netherlands, Poland, Korea) South Africa Peru Limited (Examples in OECD countries: Denmark, Turkey, Chile, Japan) Indonesia Morocco (Examples in OECD countries: Ireland, Finland) Note: China, India and Indonesia have multiple relevant institutions at different government levels below the national one with responsibilities in industry and scientific and technological development with non-elected authorities. Significant responsibility in industry and innovation does not imply a better performance, or a judgment of value; it refers to a different organisation and it implies different policy options. The degree of devolution of competences in innovation-related matters is subject to change. Information reported in this table refers to the first semester of 2010 for OECD countries, and to the second semester of 2011 for non-OECD economies. Source: Draws on and updates OECD (2011d) and OECD (2012a).
  12. 12. WHAT HAVE WE LEARNED FROM OUR WORK WITH PARTNER COUNTRIES ? Policies matter Ex. Latin American countries are starting to support the creation of start-ups FINANCING Seed capital Business angels/ networks Business incubators DEVELOPMENT OF ENTREPRENEURIAL SKILLS REGULATORY FRAMEWORK Venture capital Business accelerators Business training Technology transfer, University spin-offs, Corporate spin-offs Legislation regarding: enterprise creation, expansion, re-investment/ initial public offering, mergers and acquisitions Fiscal incentives and special taxation for new firms Seed Start-up Early stage Source: OECD(2013), Promoting Starturps in Latin America: what are governments doing? (forthcoming). Growth
  13. 13. Learning in innovation and regional development policies Categories Definition Learning from successful experiences Latin American experiences Choice (top down and bottom up) capacity of the policy to select objectives, sectors/activities and beneficiaries Ensuring high level political support to the Regional Development Agenda Gradually increasing spaces for bottom-up initiatives Identifying the challenges &defining a strategy (transformation, frontier or catching up) Going beyond technology centred innovation “Plano de metas” Brazil Coherence (Horizontal and vertical) capacity to deal both with the cross-ministerial nature of innovation and with its diversified territorial impact. Dealing with functional regions Fostering cross-regional collaborations Fostering cluster development Major bottlenecks. Consistency (time and financial) capacity to ensure continuity in policy choices as well as fine-tuning as reality changes Multi-annual plans Targeting resources at regions Financing innovation from NNRR (Chile, Peru, Colombiaongoing efforts) Control (policy and social) capacity of the institutional setting to ensure policy accountability and monitoring (policy control) and to allow stakeholders’ participation in the policy process (social control) Observatories for regional development (metrics and policies) Some national efforts, need to improve metrics. Costa Rica: interactive mapping of the NIS Source: Primi (2013), “Innovation policies in Latin America: a tale of a (slow) learning process”, Forthcoming.
  14. 14. Changing roles and approaches to the “territory” What do we observe in Latin America and in other emerging regions? The issue is rising up: in the national development agenda and in the innovation and production development agenda (multiple reasons, not least the rising revenues from NNRR and the willingness to finance production upgrading and diversification on the basis of NNRR rents). Contents and Discontents New instruments for financing innovation/new “integrated” programmes and higher role of regional authorities (ex. Accumulated learning in techno parks, entrepreneurship&start-ups, more attention towards “regional development planning Importance of the institutional setting Increased demand for policy accountability (new demands for new indicators) Challenges in policy coordination New forms of globalisation and organisation of production and innovation challenges traditional policy modes. Higher capacities and more strategic visions are needed in a context characterised by harsh competition
  15. 15. The OECD Development Centre work on innovation and territorial development Perspectives on Global Development 2013 Shifting up a gear: Industrial policies in a changing economic landscape Forthcoming!

×