Innovation policies for inclusive growth
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This document provides an overview of the OECD project on Innovation for Inclusive Growth and its 2015 report. The project aims to examine how innovation can promote inclusive development. It involved experts from various countries and organizations. The 2015 report focuses on inclusive innovations that improve welfare for disadvantaged groups. It discusses policy approaches to support such innovations and ensure they reach scale. The document outlines challenges like informality, access to expertise and finance, and regulatory issues. It proposes policy responses like cross-government coordination, public-private partnerships, and financial support to foster cooperation across actors and address challenges.
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Innovation policies for inclusive growth
- 1. Innovation Policies for Inclusive Growth Overview of the project and 2015 report
- 2. Outline • The Innovation for Inclusive Growth Project • Overview of the 2015 Report “Innovation Policies for Inclusive Growth”
- 3. The Innovation for Inclusive Growth Project
- 4. The Innovation for Inclusive Growth Project: Horizontal OECD Initiative – Committee for Scientific and Technological Policy as lead committee – Involves the Territorial Development Policy Committee and the Centre for Educational Research and Innovation – OECD Inclusive Growth Initiative Network – Experts and researchers, Inter-American Development Bank, World Bank, Growth Dialogue, Global Research Alliance Advisory Group : – Austria – Chile – China 4 – Colombia – Costa Rica – India – Indonesia – Israel – Korea – Mexico – South Africa
- 5. 2012: Incubator phase • November: Conference on Innovation and Inclusive Development, Cape Town, organised with the South African Department of Science and Technology • Scoping document 2013-2014: Producing evidence • Policy framework and background analyses • March 2014: Symposium on Innovation and Inclusive Growth, Paris, organised with the Growth Dialogue • Advisory Group meetings 2013: Project set-up and start of analyses • Creation of Advisory Group and experts network • Scoping questionnaire • Newsletters • Project development The Project Timeline (1/3)
- 6. May 2015: Publication The “Innovation Policies for Inclusive Growth” publication focuses on how innovation can serve inclusive development. It discusses a variety of inclusive innovations aimed at improving the welfare of excluded groups, notably in terms of essential public services and policy approaches to support inclusive innovation. It also looks at industrial and territorial inclusiveness. More information can be found at: http://oe.cd/inclusive- inno-report February 2015: International Conference on Innovation for Inclusive Growth Organised jointly with the Confederation of Indian Industry (CII), the World Bank Group (WBG) and the United Nations University - Maastricht Economic and social Research and training centre on Innovation and Technology (UNU-MERIT) in New Delhi, India. The Project Timeline (2/3)
- 7. October 2015: Ministerial Meeting of the OECD Committee for Scientific and Technological Policy (CSTP), Korea The project’s findings contributed in particular to policy discussions around the break out session on global inclusiveness. 2016: Deliverables • Final publication • Policy toolkit • Policy experts conference February & March 2015: Advisory Group Meetings • Defining the project scope • Setting up priorities and timelines 28 September 2015: Report The report “Boosting Malaysia’s National Intellectual Property System for Innovation” assesses how the country’s national intellectual (IP) system supports innovation and offers recommendations to improve its design, looking in particular to enhancing opportunities for users. April - December 2015: Producing evidence Analytical work including: • Framework and econometric evidence on the innovation-income inequality relationship • Policy toolkit with country policy cases on inclusiveness The Project Timeline (3/3) April 2016: Symposium on Technology, Innovation and Inclusive Growth: Future Perspectives Organised jointly with World Bank and the Growth Dialogue
- 8. Symposium on Technology, Innovation and Inclusive Growth: Future Perspectives 2-3 May 2016 – Paris Key messages: • Digital innovation fosters social mobility through processes of creative destruction, but they may also generate rents that can increase income inequality. • New technologies may result in significant job displacement over the next decades. Policies need to manage the transition period. • Despite “new” challenges arising from technological progress, the same “old” policy responses are offered. Are they still adequate?
- 9. Symposium on Technology, Innovation and Inclusive Growth: Future Perspectives (2) Key messages: • New technologies may significantly improve income, health and welfare. Productivity growth, however, is weak to date, which can only partly be explained by inappropriate measurement. • Developing countries have opportunities to leapfrog to new technologies to catch-up more quickly to leading economies, but for this to happen they need to invest in infrastructure and human capital. • The impacts of new technologies vary across countries; emerging economies are not experiencing job polarisation when confronted with ICT.
- 10. Overview of the 2015 Report “Innovation Policies for Inclusive Growth”
- 11. Scaling Up Inclusive Innovations : Definition Inclusive Growth : “economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society”.
- 12. Scaling Up Inclusive Innovations : Definition • Innovations that improve the welfare of lower-income and excluded groups – For consumption – In support of economic activities Pro-inclusive innovations: poor as end consumers Grassroots innovations: poor also innovators 12
- 13. 13 Scaling Up Inclusive Innovations : Examples Mobile money 3D printing from waste 2000$ car “Assembly line” cataract surgeries Community phone shop Off the grid electricity Adapted curriculum
- 14. Scaling Up Inclusive Innovations : In OECD context Crowdfunding “Sharing economy” Low cost
- 15. Scaling Up Inclusive Innovations Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations introduced by firms Social inclusiveness Reduced development costs of inclusive innovations Demand factors Supply factors
- 16. 16 Scaling Up Inclusive Innovations : Missing scale Mobile money “Assembly line” cataract surgeries Community phone shop Adapted curriculum
- 17. Scaling Up Inclusive Innovations : Missing scale Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations introduced by firms Social inclusiveness Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Characteristics Challenges Missing scale
- 18. Scaling Up Inclusive Innovations : Characteristics & Challenges Informality reduces access to public service Uncertainty about uptake Types and costs of innovations Access to expertise, knowledge and finance Information about consumer needs Market conditions for firms Reduced opportunities for traditional financing for pro-inclusive & low financial inclusion for grassroots Low access to expertise for grassroots Regulation may constrain market entry Baseline conditions require more adaptations
- 19. Scaling Up Inclusive Innovations : Rationale for policy intervention Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations introduced by firms Social inclusiveness Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Characteristics Challenges Missing scale
- 20. Policies in Support of Inclusive Innovation: Actors The poor Grassroot innovators Consumers Government Different ministries (innovation, health, education, etc.) Regional government NGOs Private sector MNEs national companies SMEs Public research institutes and universities Financial sector Banks Impact investors Aid and development agencies Microfinance 20
- 21. 21 Policies in Support of Inclusive Innovation Informality constraints Uncertain uptake Types and costs of innovations Access to expertise, knowledge and finance Information about consumer needs Market conditions for firms Low access to traditional loans Lack of financial inclusion Low access to knowledge networks Regulatory constraints Governmental co-operation Policy response Missing infrastructure Characteristics Challenges Co-operation across actors
- 22. Governmental Cooperation The poor - Grassroot innovators - Consumers Government - Different ministries (innovation, health, education, etc.) - Regional government NGOs Private sector - MNEs - national companies - SMEs Public research institutes and universities Financial sector - Banks - Impact investors - Aid and development agencies - Microfinance 22 Coordination within government institutions Horizontal (between ministries) Vertical (local governments) “Social Innovation Policy” (Colombia) • A cross-cutting policy between different national institutions: • 6 regional nodes
- 23. Fostering Cooperation Between Actors The poor - Grassroot innovators - Consumers Government - Different ministries (innovation, health, education, etc.) - Regional government NGOs Private sector - MNEs - national companies - SMEs Public research institutes and universities Financial sector: - Banks - Impact investors - Aid and development agencies - Microfinance institutions 23 National Innovation Foundation (India) National Innovation Foundation (India) • Partners with Honey Bee Network • Documents grassroot innovations and traditional knowledge : 181,000 ideas • Support commercialisation Partnership with R&D institutions Risk capital (Micro Venture and Innovation Fund) • Promotes intellectual property use
- 24. Policies in Support of Inclusive Innovation Financial support 24 Informality constraints Uncertain uptake Types and costs of innovations Access to expertise, knowledge and finance Information about consumer needs Market conditions for firms Low access to traditional loans Lack of financial inclusion Low access to knowledge networks Regulatory constraints Governmental co-operation Policy response Missing infrastructure Characteristics Challenges Co-operation across actors
- 25. Financial Support The poor - Grassroot innovators - Consumers Government - Different ministries (innovation, health, education, etc.) - Regional government NGOs Private sector - MNEs - national companies - SMEs Public research institutes and universities Financial sector: - Banks - Impact investors - Aid and development agencies - Microfinance institutions 25 Financial Support - Public- Private Partnerships (South Africa) - World Bank Viet Nam Inclusive Innovation Project
- 26. Financial support 26 Informality constraints Uncertain uptake Types and costs of innovations Access to expertise, knowledge and finance Information about consumer needs Market conditions for firms Low access to traditional loans Lack of financial inclusion Low access to knowledge networks Regulatory constraints Governmental co-operation Policy response Missing infrastructure Characteristics Challenges Co-operation across actors Policies in Support of Inclusive Innovation Regulatory Framework M-Pesa • Better penetration than banking in Kenya • Could not develop in South Africa due to stricter regulation
- 27. Financial support 27 Informality constraints Uncertain uptake Types and costs of innovations Access to expertise, knowledge and finance Information about consumer needs Market conditions for firms Low access to traditional loans Lack of financial inclusion Low access to knowledge networks Regulatory constraints Governmental co-operation Policy response Missing infrastructure Characteristics Challenges Co-operation across actors Policies in Support of Inclusive Innovation Regulatory Framework
- 29. Inclusive Growth • Inclusive Growth : Industrial Social Territorial
- 30. Innovation – Growth Nexus Globalization, emerging economies and ICT Democratization of innovation Social inclusiveness Increasing role of innovation for growth Islands of excellence / laggards Territorial and industrial inclusiveness - Emerging economies’ middle class Number of Inclusive innovations Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors +
- 31. Innovation – Growth Nexus Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations Democratization of innovation Social inclusiveness Increasing role of innovation for growth Islands of excellence / laggards Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Territorial and industrial inclusiveness - +
- 32. Concentration of Innovation Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations Social inclusiveness Increasing role of innovation for growth Islands of excellence / laggards Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Territorial and industrial inclusiveness -
- 33. Democratisation of Innovation Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations Democratization of innovation Social inclusiveness Increasing role of innovation for growth Islands of excellence / laggards Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Territorial and industrial inclusiveness - +
- 34. Innovation Policies and Inclusiveness Globalization, emerging economies and ICT Emerging economies’ middle class Number of Inclusive innovations Democratization of innovation Social inclusiveness Increasing role of innovation for growth Islands of excellence / laggards Reduced development costs of inclusive innovations Missing scale Demand factors Supply factors Territorial and industrial inclusiveness - +
- 36. More about the project • Visit the project’s website at: http://oe.cd/inclusive • Email us to subscribe to the project’s newsletter Contacts: Caroline Paunov: caroline.paunov@oecd.org Sandra Planes-Satorra: sandra.planessatorra@oecd.org • Find out more about the report at http://oe.cd/inclusive-inno-report
Editor's Notes
- MSMEs, large corp., MNEs, state enterprise
- Add edu example
- Add other socio-economic dimensions to income deprivation Examples: Health Education Standard of living (measured by the access and availability of basic needs, such as water, electricity or toilet) Jobs and earnings Housing Social connections Security Environment Sharing economy: concept of individuals being able to borrow assets from each other or company through (IT) platform (eradication of intermediaries)
- Define scale
- Department of Science, Technology and Innovation (Colciencias) National Planning Commission (DNP) National Agency for Overcoming Extreme Poverty (ANSPE)
- Animations to be added
- Department of Science, Technology and Innovation (Colciencias) National Planning Commission (DNP) National Agency for Overcoming Extreme Poverty (ANSPE)
- A bit under 86 000 USD – 19 May 2014 XE
- Animations to be added
- Money laundering regulation
- Money laundering regulation
- Zooming out a broader question is this of innovation as a critical driver of growth and impact of such growth on inclusiveness Growth is critically important and can contribute to social inclusiveness, notably by generating employment.
- Process of creative destruction Impact on industrial and territorial inclusiveness Impact on inclusive growth depends on how it connects with the rest of the economy.
- In 2010, the top 40 OECD regions (out of almost 1 700 Territorial Level 3 regions with data) represented one-third of all scientific publications (OECD, 2013b). A similar picture of concentration emerges for regional shares of R&D expenditure (Figure 4.6) (OECD, 2013d). A small share of ideas have high value. Marginal costs are low (non-rival and partially non excludable) low marginal costs and easlily capture entire markets Agglomeration benefits arise (sharing, matching, learning) and do not create opportunities beyond locally.
- The “democratisation of innovation” refers to the widening of the group of successful innovators to include actors who did not previously participate in innovation processes – particularly smaller entities, i.e. individuals, firms and entrepreneurs from a variety of backgrounds that are typically considered outsiders – and have opportunities to succeed with bottom-up initiatives. Product distribution has become cheaper, reducing the cost of launching innovations amazon app stores Innovation-related production costs have decreased in some sectors. The risks and time span between product development and market launch have decreased for certain innovations. The demand for innovation can be assessed more easily. Using the Internet facilitates access to knowledge for innovation. Evidence shows these benefits arise particularly for businesses in developing countries The latter relates to trickle down dynamics
- Impact on industrial and territorial inclusiveness Impact on inclusive growth depends on how it connects with the rest of the economy. Industrial and territorial inclusiveness will also depend on policies that generate a favourable environment for innovation, the diffusion of innovation and other framework conditions. Exclusion effects Interaction effects Business conditions Regional dimension