On 10 October 2013, the OECD launched a new report called "Supporting Investment in Knowledge Capital, Growth and Innovation" at the 2013 Innovation Summit hosted by the Lisbon Council and NESTA.

1. Innovation and the Digital
Economy
Andrew Wyckoff
Directorate for Science, Technology and Industry
The Lisbon Council
2013 Innovation Summit
10 October 2013

2. Knowledge-based capital
Innovative
property
Computerised
information
Economic
competencies

3. © General Motors, Chevy Volt

4. Source: Corrado, C.A. and Hulten, C.R. (2010), How do you Measure a ‘Technological
Revolution?, American Economic Review: Papers & Proceedings 100 (May 2010): 99–104.
U.S. business investment in
knowledge-based capital
0%
5%
10%
15%
20%
1972
Physical capital
Knowledge-based capital
1980 1990 2000 2011

5. Source: OECD calculations based on INTAN-Invest and national sources.
Business investment in knowledge-
based capital (2010)
0%
5%
10%
15%
20%
25%
30%
Knowledge-based capital
Physical capital
%ofvalue-added

6. http://oe.cd/kbc
Supporting Investment in Knowledge
Capital, Growth and Innovation

7. 0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
% Direct government funding of BERD Indirect government support through R&D tax incentives Data on tax incentive support not available
Direct funding of business R&D and
R&D tax incentives, 2010
As a percentage of GDP, 2011
Source: OECD STI Scoreboard 2013 (forthcoming), OECD R&D tax incentives release on www.oecd.org/sti/rd-tax-stats.htm
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
% Direct government funding of BERD Indirect government support through R&D tax incentives Data on tax incentive support not available

8. 8
Direct funding of business R&D and
R&D tax incentives, France
As a percentage of GDP and in current EUR million (accrual-basis), 2000-2011
0
1000
2000
3000
4000
5000
6000
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EURm% Direct funding of BERD Indirect support through R&D tax incentives Indirect support through R&D tax incentives (EURm)
Source: OECD-NESTI R&D tax incentives surveys 2013 and 2011, OECD MSTI database, June 2013.

9. 9
Direct funding of business R&D and
R&D tax incentives, Portugal
As a percentage of GDP and in EUR million, 2000-2011
0
20
40
60
80
100
120
140
160
180
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EURm% Direct funding of BERD Indirect support through R&D tax incentives Indirect support through R&D tax incentives (EURm)
R&D tax credit program (SIFIDE) not
in use 2004-2005
Source: OECD-NESTI R&D tax incentives surveys 2013 and 2011, OECD MSTI database, June 2013.

10. 0
20
40
60
80
100
%
Firms with fewer than 50 employees Firms with 50-249 employees Large firms
Business R&D by size class of firms, 2011
0
20
40
60
80
100
%
Firms with fewer than 50 employees Firms with 50-249 employees Large firms
Source: OECD, Research and Development Statistics Database, www.oecd.org/sti/rds, June 2013.
As a percentage of R&D performed in the business sector

11. • Take stock of your spending;
• Take account of business demography in the
design of your support mechanisms;
• Innovation is more than just R&D – consider the
bundle of assets that promote innovation;
• Scale matters: think and act as a single market.
Advancing innovation and the
Digital Economy