Polt Jvi Lecture 03 05 2011


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Presentation on STI Policy at the Joint Vienna Institute

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Polt Jvi Lecture 03 05 2011

  1. 1. Trends and challenges for research, technology and innovation policy JVI-SeminarPublic Governance and Structural Reforms 3. May 2011 Wolfgang Polt Joanneum Research Ltd. -POLICIES – Centre for Economic and Innovation Research wolfgang.polt@joanneum.at
  2. 2. Reseach, Technology and Innovation:Some Basic Concepts and Definitions
  3. 3. Definition of Research, Technology andInnovation Policy Innovation Policy: “… all public measures that attempt to influence actors (enterprises, public institutions, households) to develop new knowledge and technologies (invention), to commercialise these new technologies (innovation) or to use them (diffusion)”. Research (or Science) policy: aimed at promoting research and the production of fundamentally new knowledge. (see Gassler/Polt/Rammer 2007)
  4. 4. Rationale(s) for Research and InnovationPolicies (1) – Effects on Economic Growth  Innovation is the mayor driver of productivity and economic growth  Increasing share (though not and never ALL) of innovation is based on research and development (R&D)  Structural change is going into the direction of more ‚knowledge/skill/R&D intensive„ sectors  Competitiveness increasingly relies on mastering these knowledge intensive sectors
  5. 5. Rationale(s) for Research and InnovationPolicies (2) – Effects on Societal Well-Being  R&D and Innovation contribute to coping with societal challenges:  Health  Environment  Security  Nutrition  Mobility  ….
  6. 6. Rationale(s) for Research and InnovationPolicies (3) – market and systems failures  Public good characteristics of information and knowledge (spill- overs, externalities, non-rival consumption)  Indivisibilities, critical mass and network externalities  Risk aversion of private actors and capital markets  Coordination failures (market- and non-market incentives co-exist)
  7. 7. Basic Conceptions of Research and Innovation The (in)famous ‚linear model‘The ‚chain-linked model‘ The ‚open innovation model‘
  8. 8. Basic Instruments of Science and Innovation Policy  ‚Base„ or ‚core„ or ‚institutional‘ funding of research institutions (universities, public research labs etc.)  Public funding of private R&D Direct funding (subsidies) Indirect funding (R&D tax credits)  Intellectual Property rights (e.g. patents, trademarks as incentives for innovation)
  9. 9. Basic Structures in a National Innovation System (NIS) Demand Framework Conditions Financial environment; taxation and Consumers (final demand) incentives; propensity to innovation and Producers (intermediate demand) entrepreneurship; mobility Industrial System Education and Political System Research System Professional Large companies Government education, training Intermediaries Research Higher education Mature SMEs institutes Governance and research Brokers New, technology- Public sector RTD policies based firms research The potential reach of public policiesÉ Infrastructure Banking, venture IPR and Innovation and Standards and capital information business report normsSource: Erik Arnold and Stefan Kuhlman, RCN in the Norwegian Research and Innovation System,Background Report No 12 in the Evaluation of the Research Council of Norway, Oslo: Royal NorwegianMinistry for Education, Research and Church Affairs, 2001.
  10. 10. Developments of Instruments of Science andInnovation Policy in a systemic perspective  Fostering ‚Industry-Science – Relations‘ (ISR)  Creating Public-Private Partnerships (PPPs)  (Again) addressing ‘Grand (societal) Challenges‘ (Mission- oriented Research)
  11. 11. Recent trends and good practice in Research andInnovation Policy  RTP has become a major policy area in many OECD countries  Increasingly to be seen: formulation of explicit RTP strategies  Setting quantitative targets  Explicit ‚policy learning„ (‚open method of co-ordination„)  Setting targets and identifying priorities  Thematic  Functional  Refining funding instruments  Increasingly ‚Competitive„ / Programme funding - Increasing the leverage effects of direct funding of private R&D  Increases in ‚indirect„ support to R&D via R&D tax credits
  12. 12. Recent trends and good practice in Research andInnovation Policy  Fostering Human Resources for R&D  Output of S&T graduates  Career path for young researchers  Attract talent  Increase participation of women  Coping with globalisation of R&D  Reforming funding and performing instiutions  Increased emphasis on monitoring and evaluation (‚strategic intelligence for RTP„)  Improving the ‚governance„ of RTP  Strengthening the NIS as a SYSTEM  …especially industry-science relations !
  13. 13. Socio-cultural factors influencing innovation
  14. 14. Challenges for Innovation Policy by Group ofCountries (EIS 2008)
  15. 15. Paradigm shifts in post-war RTP and PROs: Relative Importance New ‚missions‘ ? New Public Managment? Generic elements of innovation systems Civil ‚key‘ technologies Classic mission-oriented approachWorld War II today Source: Rammer,Polt, Gassler(2008)
  16. 16. Global Trends in R&D and R&I Policies
  17. 17. Some basic trends in R&D  General increases in the knowledge intensity of production of goods and services  Share of business sector increases with level of development  Share of service sector in R&D and in innovation increases  New ‚mode of production of knowledge„: INTERACTION !  Specialisation patterns between countries differ … and will continue to do so (industrial history, public priority setting…)  Increasing globalisation (also of R&D) … in various channels (international mobility, international cooperation, inward/outward FDI)
  18. 18. R&D – global trends: intensity risesover timeSource: OECD STI Outlook 2008
  19. 19. Overall R&D intensity (GERD)
  20. 20. R&D intensity of Business Sector (BERD)
  21. 21. Source: OECD STI Outlook 2010
  22. 22. in Firms Types of InnovationSource: OECD STI Outlook 2010
  23. 23. R&D spending in Higher Education Sector (HERD)
  24. 24. R&D in Public Research Institutions (PROs)
  25. 25. Financing Structures of R&D
  26. 26. R&D Outputs: Scientific Publications
  27. 27. R&D Outputs: Patents
  28. 28. R&D Outputs: Export Performance
  29. 29. European Countries‘ Innovation Performance
  30. 30. European Countries InnovationPerformance by Sector
  31. 31. Current Challenges for RTI Policies Reaction to the Crisis !  Private <-> Public Spending Coordination of Policies across a growing number of policy domains (environment, health, security, energy, transport/mobility, communication, industry policies…) In search for Excellence….
  32. 32. R&D and innovation in the business cycle,OECD total (annual change)Source: OECD STI Outlook 2008
  33. 33. Characteristics of CEEC innovation systems
  34. 34. Characteristics of CEEC innovation systems Low overall R&D intensity, CEEC have – in contrast to other countries – considerably decreased R&D spending post 1990 ! Private sector R&D is still considerably lower than in more advanced countries Large share of R&D in the Government Sector  Academies of Sciences; Institutes in Energy and Defense R&D
  35. 35. Characteristics of CEEC innovation systems With the break-down of old structures industry science link almost collapsed Problems in Human Ressources and Quality of Education Clear divide between the EU members of CEEC and the non-EU members  High FDI inflows,  considerable share of high/medium-high tech industries characterize the former  much stronger focus of process innovation than elsewhere
  36. 36. Innovation Performance and Change (EIS 2009)
  37. 37. Innovation Performance in selected CEEC (EIS 2008)
  38. 38. R&D expenditure as % of GDP (2006)
  39. 39. R&D expenditure by sector of performance (2006)
  40. 40. Technological Specialisation and Innovation Effort
  41. 41. Characteristics of CEEC‘s research andinnovation policies
  42. 42. Characteristics of CEEC‘s R&I policies STI policies were not given much attention in the post-1990 period, focus was rather on ‚macroeconomic stability‘ (‚Washington consensus‘) ‚Stop and Go‘ approach to STI policies Pressure to build up own STI capacities is rising, competitive advantage of cheap, skilled labour + low business taxation/regulation is eroding
  43. 43. Characteristics of CEEC R&I policies EU plays considerable role for STI poliy formulation and governance … but the creation of institutions (e.g. implementing agencies) and orientation towards EU STI policy setting (Framework Programme, Structural Funds) is not generally favourable ! Lack of priority setting (mechanisms) „…CEE innovation policies tend to solve problems not existing in the respective economies“ (KATTEL & PRIMI 2010) – e.g. PPPs and TT
  44. 44. Main sources and suggested further reading:  OECD: Science,Technology and Innovation Outlook 2010. Paris  EU: Innovation Union Scoreboard 2010. Brussels  Austrian Report on Research and Development 2010. Vienna  Helmut GASSLER, Wolfgang POLT, Christian RAMMER: Setting priorites in Science and Technology Policy. In: Claire Nauwelaires: Innovation Policy in Europe. Edward Elgar. 2008  Rainer KATTEL, Annalisa PRIMI: The periphery paradox in innovation policy: Latin America and Eastern Europe compared. March 2010  Alasdair REID: EU Innovation Policy: Towards a differentiated approach across countries. January 2009
  45. 45. Thank you for your attention !