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The Mexico City Roundtable on OECD’s Innovation Strategy
- 1. The Mexico City Roundtable on OECD’s Innovation Strategy 2 nd Forum on Innovation for Competitiveness Andrew Wyckoff OECD / STI 7 January 2010
- 3. 1. OECD’s Innovation Strategy
- 5. 2. The Innovation Imperative
- 6. Pre-crisis slowdown in productivity
- 7. Innovation offers the largest potential for catching up Decomposition of cross-country differences in GDP per capita into their determinants, 2005 (United States = 100 ) GDP PPP per capita TFP Human capital Physical capital Employment United States 100.0 100.0 100.0 100.0 100.0 Canada 83.5 72.0 103.3 105.8 106.0 Japan 72.6 52.6 100.4 130.7 105.1 China 9.8 13.6 57.3 105.2 119.5 India 5.2 12.7 47.7 98.3 87.1 Brazil 20.5 29.3 70.1 103.1 96.8 Russian Federation 28.6 31.5 84.9 97.4 99.3 EU27 + EFTA 64.7 67.8 91.2 114.1 91.3 Total World 22.8 27.9 64.2 104.2 95.8 Source: OECD .
- 8. The need to support innovation grows due to the crisis.
- 9. 2. The Changing Nature of Innovation what, how, where & who
- 11. … to include non-tech innovators … Source: OECD based on Eurostat, CIS-2006 (April 2009) and national data sources . Share of non-technological innovators by sector
- 12. Share of business R&D by technological intensity (manufacturing, 2006) … a wide cross section of industries…
- 13. (indexed on 1980=1.0, Annex 1 ratification countries) ...and applications to social issues. Patenting in climate mitigation technologies relative to all sectors
- 15. There is more collaboration among scientists... Trends in co-authorship in scientific publications Domestic single authors Domestic co-authors International co-authors International Single author
- 16. Share of companies collaborating in innovation activities, by size Source: OECD based on Eurostat, CIS-2006 (April 2009) and national data sources . ...and between firms...
- 21. … as well as new global players... Contributions to growth in global R&D (in billion constant US PPP and %) Note: (1) Australia, Canada, Iceland, Korea, Mexico, New Zealand, Norway and Turkey (2) Argentina, Brazil, India, Israel, Russian Federation, Singapore, South Africa, Chinese Taipei Source: OECD. 1996-2001 2001-2006
- 22. ...that alter the topography of innovation. Broad based Leaders Narrow Leaders / Adopters Adopters / Followers
- 24. ...labour markets for the highly-skilled are globalising… Growth in the number of tertiary education students enrolled outside their country of citizenship worldwide (millions) Source: OECD and UNESCO Institute of Statistics
- 25. … and ICT (especially the Internet) has altered the nature of innovation.
- 26. ...and global challenges will exert a large “demand-pull”. Potential technological contributions to CO 2 emission reductions Source: IEA.
- 28. … forcing a “rethink” of how to manage and govern innovation. Finland’s Governance of Innovation Policy
- 29. 3. Implications for Policy: the OECD IS Policy Principles
- 35. 4. Concluding Remarks: relevance of the IS principles in the Mexican Context
Editor's Notes
- The growth path of the leading economies before the crisis was not sustainable, economically, environmentally, socially and therefore politically: Stronger productivity growth is needed to enhance efficiency and secure good prospects for long term socio-economic development worldwide
- Also true for the emerging economies where innovation = TFP in conjunction with the upgrading of HC offer by far the greatest potential for gains in GDP per capita / wealth & social well being
- Crisis emphasises the demand for new sources of growth; While at the same time global challenges become more pressing; Thus the search for growth that minimises the detrimental environmental impact which lead to innovations. We have been monitoring this situation and have found many countries are undertaking bold moves to protect and advance their innovation system – see France;
- A significant amount of R&D is perfromed in medium and low-tech sectors: ¼ in Canada, Spain and more than 30% in Australia, Greece and Norway.. Recent surveys show that between a quarter and a half of low-tech firms engaged in innovative activities but only about half performed any R&D.
- ... causing an “opening” of innovation as collaboration occurs across borders (institutions, countries, disciplines)...
- China is now the third largest investor in R&D globally (about the size of Germany) China’s growth of R&D spending has been on average 18% a year since 1995 China’s GDP R&D intensity is growing rapidly (now close to 1.5%) China now produces almost as many publications on nanotechnology as the United States
- … fuelled by globalisation… (trade, FDI, migration)
- … and by ICTs, especially the Internet, that lowers the barriers to collaboration .
- It is not about innovation for its own sake. Many innovations are worthless or even harmful. Rather, it is about how to harness innovation for improved economic growth and social welfare.
- Capturing value locally while tapping into global networks of innovation. Build absorptive capacity: = to capture spillovers you need high quality tertiary educ services as a critical component in the larger bundle maintenance on jet engines, the installation and tailoring of a computer network or the complex system integration associated with products such as aircraft require a local presence close to customers and users which captures the value locally. People and firms can and do move, they are attracted or deterred mainly by local factors. For firms the most important factor is gaining access to human capital. For people it is the availability of opportunities: jobs, education, and a high-quality way of life. At the intersection of these two are institutions of higher learning: nodes in the innovation system and essential bridging institutions between players. The policy challenge is to stop treating them as another part of the public bureaucracy and start treating them as essential cogs in the innovation machine which requires independence, competition, entrepreneurial spirit and flexibility
- After 36 slides I hope that much of this is relevant to the local needs and issues; although I’m sure that we are missing a few key points which is why we are hear – we want to hear from you When we combine this analysis with the Review of Mexican Innovation Policies, it seems to me that 3 important points emerge.
- -- governance: meetings like these for mobilisation, visibility and building momentum. Need to keep it going and avoid stop and go. see Korea & Finland; -- globalisation: not only FDI but all channels, Mexican firms need to look outside of Mexico – building on success stories and tapping into the diaspora abroad; They have the access to large and sophisticated markets in US and in LA that are enviable; -- entrep & education: see Korea where SME R&D has increased from 10% Asian pre-crisis to now 30%