Innovation for Inclusive Growth · Innovation for Inclusive Growth Caroline Paunov Directorate for...
Transcript of Innovation for Inclusive Growth · Innovation for Inclusive Growth Caroline Paunov Directorate for...
Innovation for Inclusive Growth
Caroline Paunov Directorate for Science, Technology and Innovation OECD Innovation for Inclusive Growth OECD-CII-WB-UNU Delhi – 10-12 February 2015
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Inclusive Innovations
Mobile money
3D printing from waste
2000$ car
“Assembly line” cataract surgeries
Community phone shop
Off the grid electricity
Low-cost portable
ECG
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Inclusive Innovations
Mobile money
“Assembly line” cataract surgeries
Community phone shop
Low-cost portable
ECG
The Context for Inclusive Innovation
Supply factors
Larger opportunities for welfare and businesses of lower-income groups
Improved conditions for inclusive innovations
Firms and other entities introduce more financially sustainable inclusive
innovations
Reduced development costs
Demand factors
Role of emerging economies in the global economy
Larger middle class in emerging economies
Access to finance
Market conditions for firms
Access to expertise and
knowledge
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Distinctive Characteristics
Types and scale of innovations Types and scale of innovations
Access to finance
Market conditions for firms
Access to expertise and knowledge
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Policy Approaches in Support
Market and product regulations
Co-operation within government
Access to expertise and knowledge for
grassroots
Fostering co-ordination across actors
International co-operation
Financial support mechanisms
Sub-national governance
Policy Responses
Limited awareness and
use of IP
Informality limits access
to public service Intellectual property rights policies
Lack of understanding
causes low uptake
Types and scale of innovations
Access to finance
Access to expertise and
knowledge
Market conditions for firms
Larger risk and delays for
uptake restrict access
Lack of financial inclusion
for grassroots innovators
Low absorptive capacity
and access to knowledge
networks
Lack of expertise
Private provision of
public services
Adaptation to local needs
• Innovation-driven growth and creative destruction
• Global competition with “winners” and “ losers”…
• Industrial and territorial inclusiveness provide a link from innovation to social inclusiveness
The Economics of Inclusiveness and
Innovation
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Industrial and Territorial Inclusiveness
87
83 81
73 73
72 65 64 64 64
62 60
57 55
54 52
51 49 49
45 44
42 30
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0 20 40 60 80 100
TurkeyCanada
AustraliaChile
China (TL2)United States
FinlandGreece
SpainBrazil (TL2)
MexicoIndia (TL2)
FranceSweden
KoreaNetherlands
PortugalJapan
South Africa (TL2)United Kingdom
AustriaGermany
Czech RepublicIreland
%
• Concentration of innovative performance across actors within countries is substantial
National patent concentration by top 10% of TL3 regions, average 2008-10
Source: OECD Regions at a Glance 2013
What are the impacts of structural changes on the concentration
of innovation activities?
Implications for for inclusive
growth
• Concentration of production in global value chains /quest for competitiveness
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On the Importance of Being “Selective”
• Successful growth trajectories of the past: Korea
• Not only technical innovation is valuable & benefit of wider-spread contributions
• ICT-based opportunities: networks/platforms and reduction in “fixed costs”
• Increased number of skilled individuals can access demand more easily
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Increased Value from “Democratising
Innovation”?
The impacts of policies on inclusiveness depend on:
Strategic Objectives and Outcomes
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Drivers of Policy Impacts on
Inclusiveness?
Strategic Objectives impact on:
“Democratisation of innovation”
Concentration of innovation capacities
“Trickle down” mechanisms
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Source: Bas, M. and C. Paunov (2014), “The unequal effect of India’s industrial liberalization on firms’ decision to
innovate: Do economic conditions matter?”, OECD Science, Technology and Industry Working Paper [forthcoming].
• Largest firms only benefits exceptionally from liberalization in less supportive environments
Economic
development Financial
development Knowledge and skills
base
High Low High Low High Low
Liberalization*Smallest firms -0.123 -0.056 -0.084 -0.043 -0.091 -0.067
(0.088) (0.051) (0.064) (0.076) (0.113) (0.048)
Liberalization*Largest firms 0.052 0.185*** 0.119 0.183** 0.073 0.177***
(0.091) (0.059) (0.074) (0.074) (0.121) (0.050)
Observations 7,597 8,610 8,277 7,930 4,792 11,415
R-squared 0.27 0.33 0.33 0.27 0.32 0.29
Business Conditions and Liberalization
Effects on Indian Firms’ R&D Investments
Economic
development Financial
development Knowledge and skills
base
High Low High Low High Low
Liberalization*Smallest firms -0.123 -0.056 -0.084 -0.043 -0.091 -0.067
(0.088) (0.051) (0.064) (0.076) (0.113) (0.048)
Liberalization*Largest firms 0.052 0.185*** 0.119 0.183** 0.073 0.177***
(0.091) (0.059) (0.074) (0.074) (0.121) (0.050)
Observations 7,597 8,610 8,277 7,930 4,792 11,415
R-squared 0.27 0.33 0.33 0.27 0.32 0.29
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Business Conditions and Liberalization
Effects on Indian Firms’ R&D Investments
• Largest firms only benefits exceptionally from liberalization in less supportive environments
Source: Bas, M. and C. Paunov (2014), “The unequal effect of India’s industrial liberalization on firms’ decision to
innovate: Do economic conditions matter?”, OECD Science, Technology and Industry Working Paper [forthcoming].
• All economies face the policy challenge of growth that is socially inclusive
• Innovation can contribute to the solution, notably inclusive innovations & policy options exist
• Innovation policies impacts industrial and territorial inclusiveness
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Initial Conclusions
Caroline Paunov
Dominique Guellec
Cynthia Lavison
Isabel Vogler
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