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Trends in Science, Technology and Industry: An OECD Perspective

Trends in Science, Technology and Industry: An OECD Perspective. Jerry Sheehan OECD Science & Technology Policy Division Knowledge Economy Forum III Budapest, 24 March 2004. Overview.

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Trends in Science, Technology and Industry: An OECD Perspective

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  1. Trends in Science, Technology and Industry: An OECD Perspective Jerry Sheehan OECD Science & Technology Policy Division Knowledge Economy Forum III Budapest, 24 March 2004

  2. Overview • The knowledge-intensity of OECD economies continues to grow as countries develop and use knowledge more widely. Considerable variation among countries remains. • Eastern European economies tend to lag other OECD countries, but are making good progress. Considerable variation exists among them. • OECD countries are investing more in R&D, due in large part to increases in business R&D. Government support for business R&D is becoming more indirect and aims at a broader range of firms, in particular SMEs. • Continued economic integration has fuelled globalisation of R&D, creating new opportunities for emerging & transition economies. • Enhancing the social and economic impact of public research requires adequate funding and improved forms of governance. • Producing sufficient numbers of scientists and engineers is a challenge faced by most OECD countries.

  3. Investments in knowledge are growing across OECD. . .

  4. . . . as are knowledge-intensive industrial outputs Share of high- and medium-high technology manufacturing in total gross value added (2002) Share of knowledge-intensive “market” services in total gross value added (2000)

  5. R&D investments are growing in most OECD countries, reflecting importance of innovation GERD as % of GDP Source: OECD MSTI Database, November 2003

  6. Business is investing more in R&D Business R&D as a % of GDP Note: Data for 2002 or nearest year available. Source: OECD, MSTI database, November 2003.

  7. Government financing of business R&D declining, but indirect mechanisms gaining Government-financed BERD % of GDP, 2002 Generosity of tax regimes for R&D (B-index)

  8. Small firms play in important role & attract much government support

  9. R&D becoming more globalised: opportunity for emerging economies? Foreign affiliates as share of industrial activity R&D intensity of domestic verus foreign firms Source: OECD Activities of Foreign Affiliates database, January 2004

  10. Factors influencing the location of R&D • Product markets -- Proximity to large, relatively homogeneous market with lead customers. • Labour markets — labour costs are an important consideration for some R&D, but skills and regulation play key roles, too. • Scientific and technological expertise — Proximity to major universities and research labs. Tap into locally generated ideas, suppliers and people. • Innovative environment — ease of commercialising research results/inventions. • Quality of life — as relates to foreign assignments for expatriated workers.

  11. Funding for public research lags in Eastern European countries R&D in the higher education and government sectors as a % of GDP, 2000 Source: OECD, MSTI Database, November 2003.

  12. Old model: Funding basic research Government funding of basic research, often though institutional funding (i.e., block grants). Universities have autonomy in setting research objectives New model: Governing the science system Link government funding to social and economic objectives Priority-setting New funding Universities accountable for research spending and results Competitive awards Evaluation (ex-ante, ex-post). Encourage multi-disciplinary research and links to industry Centres of excellence Public/private partnerships Enhancing contributions of public research

  13. Formal Joint labs Spin-offs Licensing Research contracts Informal Mobility of researchers Co-publications Conferences, etc. Informal contacts Flow of graduates to industry Strengthening industry-science linkages Forms of Collaboration Routes to Commercialisation Entrepreneurial route: spin-offs/spin-outs Patenting route: licensing of technology Cooperative route: joint and collaborative research

  14. Strengthening human resources for S&T • Cultivate domestic supply of scientists and engineers • Attract more students into science and engineering • Increase attractiveness of research careers Researchers per thousand labour force, 2002 • Attract and retain foreign students and workers • Re-patriation • Immigration rules/policies • Quality and selectivity of universities • Excellent research centres • Innovative environment to attract entrepreneurs

  15. For more information. . . STI Outlook 2002 STI Scoreboard 2003 STI Outlook 2001 Drivers of Growth www.oecd.org/sti/innovation

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