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Innovation Systems and Development Strategies

Innovation Systems and Development Strategies. Thomas Andersson Santiago, Chile 13 May 2004. IKED…. IKED addresses the emerging issues of the knowledge-based economy (KBE), with a holistic view and a cross-sectional approach Bridges between research/analysis and policy-making

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Innovation Systems and Development Strategies

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  1. Innovation Systems and Development Strategies Thomas Andersson Santiago, Chile 13 May 2004

  2. IKED… • IKED addresses the emerging issues of the knowledge-based economy (KBE), with a holistic view and a cross-sectional approach • Bridges between research/analysis and policy-making • Has a Nordic base, leveraging the Nordic region’s strength in KBE as well as the Nordic need of learning from others to confront current challenges • Has a global reach – working with countries and institutions, aiming for concrete reforms • Has partners/clients ranging from the most advanced to transition and least developed economies • Collaborates with and includes all key stakeholders, including the private sector and consumer side, in its activities/projects in order to promote contructive dialogue and concrete results

  3. Policy fora with continuous exchange and international impetus Direct involvement in key reform processes IKED Integrated Approach Integrity and internal analysis Networks between government, business and experts

  4. Flagship Publications 2004 • ASEM Proceedings: Globalisation and ICT: The Role of Government, Private Sector and Civil Society in an Information Society for All • World Competitiveness Proceedings: Innovative Clusters – A New Challenge • Towards a New Growth and Innovation Policy in Norway • Towards Effective Policies for Innovation and Enterprise in the Baltic Sea Region • Handbook for Evaluation of Innovation Policy • Flagship Conferences organized/co-organized by IKED 2003-2004 • Future Nordic Welfare Society (Stockholm, February 5, 2003) • An Information Society for All, ASEM (Malmö, March 10-12, 2003) • The Competitiveness Institute (Gothenburg, September 15-17, 2003) • Baltic Development Forum (Riga, October 5-7, 2003) • World Knowledge Forum (Soeul, October 15-17, 2003) • Virtual Opportunity Congress (Sydney, December 16-17, 2003) • INSME Roundtable (Malmö/Helsingborg, February 25-27, 2004) • Measuring and Analysing Digital Divides (Beijing, March 24-26, 2004) • Welfare policies in the Era of Globalisation (Havana, April 26-29, 2004)

  5. Manufactured exports’ share in world exports by technology groupings Source: UNCTAD, World Investment Report 2002.

  6. The Digital Divide and ICT Infrastructure Source: ITU (2002).

  7. Room for higher productivity - R&D and ICT can generate higher labor productivity and TFP - Synergy effects/enabling conditions - Favorable cross-border resource flows • Broadening basis for growth - Using time better: hours worked, life-long health - Encompassing SMEs - Regional and sectoral broadening - Untapped potential population groups: immigrants, women, minorities - IKED IKED 2004

  8. Increased potential both directions through ICT Innovations Supply: Science, R&D Demand: Market Ideas technologies Scientists Competitors Contractors Clients INNOVATION SPIRAL

  9. Strengthening framework conditions to support innovation processes Improving exchange mechanisms among actors Conditions for competition Entrepreneurship Labour markets Career Reward Actors Universities University/ Private sector cooperation Building new companies Tax systems Social capital Individuals Venture capital Companies Society Applied research Education Skills Competitive intelligence Innovations, Commers- ialisation IPR Financial markets ICT-infrastructure Product development Demand for knowledge Environmental sustainability Growth and welfare

  10. ICT Weighted country positions Innovation SWEDEN FINLAND FINLAND US SWEDEN USA CANADA JAPAN KOREA SWITZERLAND SINGAPORE AUSTRALIA DENMARK WORLD KOREA NETHERLANDS Tentative, based on international estimates

  11. Investment in knowledge assets, % GDP 2000 % 8 R&D Software Higher Education 6 4 2 0 EU Italy Spain Korea Japan Ireland OECD Austria Greece France Mexico Finland Norway Belgium Hungary Canada Portugal Sweden Germany Denmark Australia Switzerland Netherlands United States Czech Republic United Kingdom IKED IKED 2004

  12. Government role in R&D varies considerably across countries, % of GDP 2000 IKED IKED 2004

  13. Selected variables Innovation System

  14. Barriers to entrepreneurship Source: OECD IKED IKED 2004

  15. GDP-growth and entrepreneurship 7 Ireland 6 Luxembourg 5 U.S. 4 Netherlands Portugal Spain GDP Growth, 1989-99 Greece 3 Norway Iceland Denmark Austria 2 Japan Belgium U.K. Sweden France Finland Italy 1 Switzerland Germany 0 4 5 6 7 8 9 10 11 12 13 14 15 Start-up Rates, 1988-96 Source: OECD, 2001 Source: OECD

  16. High Index of Rule of Law Appli- cation Low Index OECD East Middle South Eastern Latin Sub- Former Asia East Asia Europe America Saharan Soviet Africa Union Application of Rule of Law Varies by Region (based on aggregation of surveys/polls 1997-99*) Source: Kaufmann, Kraay and Zoido-Lobaton (1999). "Aggregating Governance Indicators" and "Governance Matters" PWRP 2195 and 2196. http://www.worldbank.org/wbi/governance

  17. Patents invented in collaboration with foreign inventors (%) Share of scientific publications with a foreign co-author (%) 30 40 35 25 1981 1985-87 30 1995-97 1993-95 20 25 20 15 15 10 10 5 5 0 0 EU Italy Japan OECD France EU Canada Italy Germany Japan OECD France United States Canada Germany United Kingdom United States United Kingdom International co-operation in S&T IKED IKED 2004

  18. “Bilateral Investment Treaties”, 2003 Source: UNCTAD Source: UNCTAD, 2003

  19. Attracting FDI Development objectives Maximizing benefits of FDI Minimizing negative effects of FDI Challenges for National FDI Policies

  20. Intensifying policy challenges • Coordination to put in place comprehensive innovation policy • Appropriate mechanisms for public funding of R&D • Science-industry interplay: incentives for university and scientists to work with industry, upgrading science parks and incubators • Reforms to strengthen conditions for provision of micro-funding and better functioning venture capital markets • Valuing knowledge, competence upgrading in SMEs, enabling meeting specific needs through internal upskilling or strengthened networking with regard to external competence • Plugging into global knowledge networks while underpinning traditional skills through institutional support

  21. Environment Scientists Research Education NGOs Trade Etc. I.P. Firms Finance Industry Labour Unions Innovation Policy Positioning: Traditional

  22. Environment Scientists Research Education NGOs Trade Etc. Firms Finance Industry Labour Unions Innovation Policy Positioning: Implicit

  23. Environment Scientists Research Education NGOs Trade Etc. I. P. Firms Finance Industry Labour Unions Innovation Policy: Explicit positioning

  24. Environment Scientists Research Education NGOs Trade Etc. I. P. Firms Finance Industry Labour Unions Innovation Policy: Explicit Positioning

  25. Note: The size of the region/country's box reflects the size of the FDI stock. Source: UNCTAD Inward FDI stock, 2002

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