OECD innovation strategy: content analysis and implementation opportunities

1. OECD innovation strategy: content analysis and implementation opportunities Ilona Dubra Latvijas Universitāte Ekonomikas un vadības fakultāte AS LUXHOUSE Kalngale, Rubeņu iela 9, E-pasts: ilona.dubra@inbox.lv

2. The relationship between human capital and innovation • “Innovation as a creation of new knowledge and ideas to facilitate new business outcomes, aimed at improving internal business processes and structures, and to create market driven products and services. Innovation encompasses both radical and incremental innovation” (Plessis, 2007, 21) • human capital component such as skills, knowledge, people expertise are treated as an important source of competitive advantage to individuals, organizations and societies (Gimeno et al, 1997, 755)

3. OECD Innovation Strategy policy principles for promotion of innovation in 21st century • Empowering people to innovate • 2. Unleashing innovations • 3. Creating and applying knowledge • 4. Applying innovation to address global and social challenges • 5. Improving the governance and measurement of policies for innovation

4. R&D intensity (R&D expenditure as % of GDP), all sectors, EU – 27 and selected countries – 2007

5. R&D personnel in head account in business enterprise sector, as a percentage of persons employed, EU – 27 and selected countries - 2006

6. Innovative enterprises as a percentage of all enterprises by main NACE group, EU – 27 and selected countries – 2006

7. Conclusion • companies should invest in human capital, or in another words in employees knowledge, skill, competencies that will enhanced company performance • OECD Innovation Strategy is based on five main principles for government action: empowering people to innovate, unleashing innovations, creating and adapting knowledge, applying innovation to address global and social challenges, improving the governance and measurement of policies for innovation • Germany, Belgium, France, Ireland, Denmark, Estonia, Finland, Austria, Luxemburg, Sweden were the leaders in innovative enterprises as a percentage of all enterprises by main NACE group in 2006 but Latvia, Hungary and Romania in the tale

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