Measuring Innovation and Growth in Knowledge Economies
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1 12/SOM1/EC/29 Agenda Item: 12 Measuring Innovation and Growth in Knowledge Economies Purpose: Information Submitted by: OECD First Economic Committee Meeting Moscow, Russia February 12
2 Measuring innovation and growth in knowledge economies APEC Economic Committee, Moscow February 12 OECD only APEC only APEC & OECD economies Alessandra Colecchia, OECD, Head Economic Analysis and Statistics, Directorate for Science, Technology and Industry MEASURING INNOVATION: A NEW PERSPECTIVE New ways of looking at traditional indicators and new experimental indicators that provide insight into areas of policy interest Innovation today: measurement and challenges Innovation indicators for policy making When indicators and policy advice meet: the OECD innovation policy platform 1
3 INNOVATION TODAY & CHALLENGES Innovation is broader than R&D, it includes design and marketing HOW WE DEFINE AND MEASURE INNOVATION TODAY Innovation is the implementation of a new or significantly improved product, process, new marketing method, or a new organisational method in business practices, workplace organisation or external relations. Source: OECD/Eurostat (5), Oslo Manual, Paris, 3rd Edition Innovation is broader than R&D Product innovators by R&D status 6-8 % R&D -active firms Firms without R&D Source: OECD STI Scoreboard 11 based on Eurostat (CIS-8) and national data sources, June 11. 2
4 The international framework for measuring innovation in businesses (Oslo Manual and innovation surveys) Innovation inputs -R&D - Software -Design -Marketing -Training Innovation outputs -Innovators: * New products (goods and services) * New processes * New organisational and marketing methods - Non-innovators: * Ongoing or abandoned activities Innovation impacts - Measures of business performance (within survey or datalinked) CHALLENGE on DEFINITION/MEASUREMENT INNOVATION comes from R&D, software development, design, marketing activities but also from public sector, users, society 6 3
5 CHALLENGE on DEFINITION/MEASUREMENT/IMPACTS % INNOVATION comes from investment in intangible assets Investment in fixed and intangible assets as a percentage of GDP, 6 Machinery and equipment Software and databases R&D and other intellectual property products Brand equity, firm-specific human capital, organisational capital Source: OECD STI Scoreboard 11. Data on intangible investment are based on COINVEST [ and national estimates by researchers. Data for fixed investment are OECD calculations based on OECD, Annual National Accounts and EU KLEMS Databases, March. CHALLENGE on MEASUREMENT/IMPACTS Fragmentation of production Boeing 787 Dreamliner Wing box: Mitsubishi Heavy Industries (Japan) Wing ice protection: GKN Aerospace (UK) Vertical Stabiliser: Boeing Commercial Airplanes (USA) Centre fuselage: Alenia Aeronautica (Italy) Rear fuselage: Boeing South Carolina (USA) Lavatories: Jamco (Japan) Doors & windows: Zodiac Aerospace (USA) PPG Aerospace (USA) Forward fuselage: Kawasaki Heavy Industries (Japan) Spirit Aerosystems (USA) Escape slides: Air Cruisers (USA) Flight deck seats: Ipeco (UK) Raked wing tips: Korean Airlines Aerospace division (Korea) Horizontal Stabiliser: Alenia Aeronautica (Italy) Aux. power unit: Hamilton Sundstrand (USA) Centre wing box: Fuji Heavy Industries (Japan) Engines: GE Engines (USA), Rolls Royce (UK) Flight deck controls: Esterline (USA), Moog (USA) Engine nacelles: Goodrich (USA) Passenger doors: Latécoère Aéroservices (France) Cargo doors: Saab (Sweden) Prepreg composites: Toray (Japan) Landing gear: Messier-Dowti (France) Electric brakes: Messier-Bugatti (France) Tires: Bridgestone Tires (Japan) Source: Tools/Software: Dassault Systemes (France) Navigation: Honeywell (USA) Pilot control system: Rockwell Colins (USA) Wiring: Safran (France) Final assembly: Boeing Commercial Airplanes (USA) 4
6 Vertical trade: import content of exports Import content of exports by sourcing country (5) Source: OECD Inter-country inter-industry model (March 11). BRIIS: Brazil, Russian Federation, India, Indonesia, South Africa Increasing global interdependency Import content of exports Source: OECD STI Scoreboard 11 based on OECD, STAN Input-Output Database, May 11; STAN Bilateral Trade by Industry and End-Use Category (forthcoming); map source: ARCTIQUE all rights reserved. 5
7 Technology transfers to selected BRIICS 5-7 As share of patents by origin of the inventor and patent office of destination Source: OECD calculations based on the Worldwide Patent Statistical Database, EPO, April 11; map source: ARTICQUE - all rights reserved. Targeting new growth areas Building knowledge Unleashing innovation Innovation in context What can Governments do? Connecting knowledge Competing in the global economy 6
8 Building a critical mass in science Researchers, per thousand employment 16. R&D Volumes in USD - constant prices and PPP 1 Billion BRIICS North A merica EU27 Other OECD members Finland 14. Billion Iceland R&D in OECD and non-oecd economies, 9 or latest available year 12.. Billion New-Zealand Norway Denmark Japan United States Korea Sweden P ortugal Fran ce Canada Australia Austria United Kingdom Estonia Belgium Ireland Germany Slovenia Spain Luxembourg Slovak Republic Russian Federation Netherlands Czech Republic Hungary European Union Greece Poland Italy Switzerland Turkey Source: OECD, STI Scoreboard 11 based on Main Science and Technology Indicators Database, June China Mexico Chile South Africa Gross domestic expenditures on R&D as a percentage of GDP Building knowledge centres of excellence University hotspots geographical distribution of highest impact institutions 9 Univ ersities USA UK Other EU Other OECD Asia 25 B*I*CS Source: OECD STI Scoreboard 11 based on OECD and SCImago Research Group (CSIC) (forthcoming), Report on Scientific Production, based on Scopus Custom Data, Elsevier, June 11. 7
9 Opening up International collaboration in science and innovation, 7-9 OECD, Patent Database, May 11; OECD and SCImagoResearch Group (CSIC) (forthcoming), Report on Scientific Production, based on Scopus Custom Data, Elsevier, June 11. Quality not quantity: the impact of collaboration Impact of scientific production& extent of international scientific collaboration 3-9 Norm alised Impact 2. Number of articles 5 articles 1.8 articles 5 articles Wo rld China United States Turkey Japan BRIICS North America EU27 Other OECD members India Netherlands United Kingdom Sweden Belgium Canada Norway Finland Australia Austria Germany Ireland Israel New Zealand Italy France Estonia Spain Portugal Greece South Africa Hungary Korea Chile Slovenia Czech Republic Brazil Poland Mexico Denmark Slovak Republic Switzerland Iceland Luxembourg Indonesia Russian Federation International collaboration among institutions (% of articles) Source: OECD STI Scoreboard 11 based on OECD and SCImago Research Group (CSIC) (forthcoming), Report on Scientific Production, based on Scopus Custom Data, Elsevier, June 11. 8
10 Facilitating Helping the STI circulation talent circulation of STI talent S&E enrolments at the tertiary level - 5A, 9 As a % of all enrolments (domestic and international students) at the tertiary level - 5A International students enrolled in SE fields at the tertiary level, 9 As a % of all international students at the tertiary level % Finland Germany France Sweden United Kingdom Switzerland Italy Japan Canada (8) Australia United States Netherlands % Sweden Finland Germany United States Switzerland France Canada (8) United Kingdom Italy Australia Japan Netherlands Source: OECD, Education at a Glance 11: OECD Indicators, OECD, Paris. Joining efforts to solve global challenges Countries share of patents for energy generation from renewable and non-fossil sources, 7-9 % Source: OECD STI Scoreboard 11 based on OECD, Patent Database, May 11. 9
11 Investing in smart infrastructure OECD terrestrial mobile wireless broadband subscriptions by technology, June Satellite Terrestrial fixed wireless Standard mobile broadband subscriptions Dedicated mobile data subscriptions Subscriptions per inhabitants Source: OECD STI Scoreboard 11 based on OECD, Broadband Portal, June 11. Direct government funding of business R&D and tax incentives for R&D, 9 Supporting business innovation % GDP Direct government Total government funding support of business to business R&D R&D Indirect government support to business R&D (R&D tax incentives) No data/cost estimate available Source: OECD STI Scoreboard 11 based on OECD R&D tax incentives questionnaires, January and June 11; and OECD, Main Science and Technology Indicators Database, June 11.
12 Lowering barriers to entrepreneurship Barriers to entrepreneurship, 8 Scale from to 6 from least to most restrictive Index Regulatory and administrative opacity Barriers to competition Administrative burdens on startups Source: OECD STI Scoreboard 11 based on OECD, Product Market Regulation Database, May 11 The importance of stimulating young firms Patenting activity of young firms 7-9 % 5 Share of patenting firms under 5 years old Share of patents filed by firms under 5 years old 4 Source: OECD STI Scoreboard 11 based on the Worldwide Patent Statistical Database, EPO, April 11; and ORBIS Database, Bureau van Dijk Electronic Publishing, December ; matched using algorithms in the Imalinker system developed for the OECD by IDENER, Seville,
13 OECD Reviews of Innovation Policy Completed: Chile, China, Korea, Mexico, New Zealand, Peru and Russian Federation Ongoing: Vietnam, ASEAN regional mapping 2/3s of APEC engaged with OECD s work on innovation See: Innovation Policy Platform Web-based guidance and information resources in support of Innovation (sub)-system diagnostics Policy mix design Purpose facilitate processes of learning by Broadening perspectives framing Making accessible, codifying and ordering the significant, but fragmented, knowledge base around STI (policy) dynamics Encouraging intelligent benchmarking Supporting international mutual learning and exchange But also complementing (and not substituting) existing processes and analysis An international platform for mutual learning and exchange on STI policy experiences 24 12
14 Science, Technology, Industry Scoreboard 11 Thank you for your attention! 13
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