Promoting catch-up innovations – the role of trade and investment

1. Promoting catch-up innovations – the role of trade and investment • Michiko ENOMOTO • Economic Cooperation and IntegrationDivision/UNECE • Geneva, 31 May2013

2. Why do we promote innovation? • Economic crisis • Environmental challenges • Innovation and new technologies play a decisive role:economic and social development, economic growth, improved productivity and competitiveness, and improved quality of life.

3. Whatis innovation? Not onlyresultsof R & D… But also implementation of new or greatly improved product (good or service), or process, new marketing method, or new organisational method in business practices, workplace organisation or external relations. Definition (OECD Oslo Manual)

4. Kyrgyzstan and TajikistanInnovation landscape Source: The Global Innovation Index 2012, INSEAD Source: The Global Innovation Index 2012, INSEAD

5. Frontier innovations • Frontier innovations - new to world knowledge • Most takeplace in high-income countries • R & D in firmsplaysmajor role.

6. Catch-up innovations and technology absorption • Catch-up innovations – new to country/firm • To acquire, adapt and use existing knowledge---less costly and less risky than creating new • Successful emerging economies imported what the rest of the world already knew; improved it, and exported it in a form the rest of the world wanted • Strong absorptive capacity made this possible

7. How to grow innovation plants? • Government as gardener • Discoveryand importingseeds • Access to information, diaspora, open trade • Plantingseed and growingplants • Joint ventures, FDI • Watering • Financing • Preparingground = good absorption capacity • Good education, entrepreneurship, basic technologicalliteracy • Removingweeds • Poor business environment • Improvementof the seed • Catch-up innovation – R & D.

8. How to foster catch-up innovations and to stimulate technology absorption? • Access: • Open trade (imports) • Information and Communication Technology policies • International collaboration in research networks • Diaspora • Business facilitation: • Ease of business, foreign direct investment, labour mobility.

9. How to foster catch-up innovations and to stimulate technology absorption? • Intellectual Property Rights legislation and enforcement • Public procurement, standards and regulations • Support for finance to early adopters/demonstrators.

10. How to increase absorptive capacity? • Empowerment of local humanresources: • Education and life-long learningpolicies • Enterprise-basedworker training, management and entrepreneurship training • Technical and vocational education and training.

11. How to increase absorptive capacity? • Facilitate network with global suppliers • Developlinkages to global value chains • Rule of law, contractenforcement, competition • Bankruptcyand re-entry facilitation • Policies to attract and retaintalentedworkers.

12. UNECE Innovation Performance Reviews Policy recommendations stimulate innovation activity in the country enhance innovation capacity improve the efficiency of the national innovation system Follow-up and capacity-building activities to support implementation.

14. Green technologies UNDA project "Building the capacity of SPECA countries to adopt and apply innovative green technologies for climate change adaptation“ How to integrate environmental concerns into innovation policies? How to mobilise the financing to introduce green technologies (PPP)? How to bring together all stakeholders to make changes?

15. Thank you! • ありがとう • Michiko ENOMOTO (UNECE) • Michiko.Enomoto@unece.org