Promoting Innovation and Growth in

Services for a Silver/Ageing

Economy

OECD September 27, 2011 Knowinno/Innoserv Workshop

Elettra.Ronchi@oecd.org

In the next four decades, half of the increase in the world population will be accounted for by a rise in the number of people aged 60 years or over. OECD countries have all witnessed extraordinary gains in longevity, with average life expectancy at birth rising from 66 years in 1950 to just over 76 years in 2007.

OECD Governments are seeking ways to anticipate and respond to the emerging new societal needs of ageing societies by better integrating the ageing challenge at the core of innovation activities.

Aims of the Project:

Assist Governments by collecting evidence on current

practices that :

Encourage and stimulate innovation to address the

emerging new societal needs

Seize the benefits of ICTs for the digital delivery of

services for the elderly and open new markets and

growth opportunities

Create enabling environments (the institutional

arrangements that may best support innovation)

Reward Performance

Evaluate and Help Scale Success

2011 Case Study Countries

Denmark: Ministry of Science , Technology and Innovation; Ministry

of Finance; The Danish PWT Foundation – Investment in Public

Welfare Technology (ABT-fonden). National Information IT and

Telecom Agency.

Finland: Ministry of Health of Finland ; Finnish Agency for

Technology and Innovation ( TEKES ).

Italy: Ministry of Innovation; San Raffaele Institute, Milan, (IRIS:

Innovation and Research in Life and Health Services); Foundation

Santa Lucia, IRCCS, Rome.

Japan: Ministry of Information and Communication ; Ministry of

Economy, Trade and Industry ; Waseda University, Tokyo.

Korea: Korea Information Society Development Institute; School of

Information and Communications at Sungkyunkwan University,

Seoul.

Sweden: Swedish Agency for Innovation Systems –VINNOVA.

Observed and Projected Senior (+65) Dependency

Ratio (1960-2050) in the case study countries

Source: (OECD 2010)

Japan has the highest projected share of the population

aged over 80 years

Source: Help Wanted? Providing and Paying for Long-term Care , OECD 2011

Country Title Objective of the Programmes Nature of the

Initiative

Denmark Danish case Care 2.0- Online

Care/omsorg

Better home care//integrated

care and greater

independence/Wellbeing

New ways to leverage a secure

and safe network, both

technical and social, to offer

social support of any kind

(including e-integration)

Public-Private

Care@Home

Dreaming

Finland E-Kotitori- Better home care and greater

independence

Public-Private

Italy Smart Rehabilitation for better

daily living of Alzheimers

patients

Integrated Care for Greater and

Wellbeing

Public-Private

Integrated e-services for

Health and Wellbeing

Japan E-safety –Home town cell

phone project

Greater , E-inclusion, Safety

and Wellbeing

Private- Public-

Private

E-warning – integrating new

services for the elderly in

response to natural disasters

Korea Silver-net E-inclusion /Re-skilling/

Leisure/entertainment

Not-for-Profit

Sweden Robotics Solutions for

Independent Life

Greater , E-inclusion and

Wellbeing

Public-Private

ICT-based home environments

Case Studies

The case studies address three types of ‘silver’ market

conditions:

No- Market - where the potential product or service may not be profitable

Innovation in services to address social exclusion and isolation of the elderly has, for example, a public good nature, leading to under-investment by the market.

Limited or Low-Profit Market

The market for home and remote care

services is underdeveloped and returns may

be insufficient for a traditional for-profit

enterprise. It is difficult for the private

providers of these services to forecast

demand, which is sometimes reinforced by the

absence of competition between providers

and the traditional reliance on public funding.

Long Term Care Expenditure among OECD countries Per capita spending in USD PPPs, 2008 or latest available year

Source: OECD 2011-Help Wanted: Providing and Paying for Long Term Care

The OECD System of Health Accounts framework adopts a comprehensive approach,

covering both health care and social care components of LTC expenditure.

High-Profit Market

As convergence between existing services (paper/cash-based, etc) and the mobile IT technologies continues to expand, an ubiquitous, high-profit world of services is beginning to unfold.

0

5000

10000

15000

20000

1999 2005 2006 2007 2008

Cumulative Sales (Thousands of Units)

Raku Raku Phone cumulative sales (1999-2008)

Expanding opportunities for partnerships

Conclusions:

Mobilizing innovation for ageing calls for innovative solutions at all levels, including organizational and social innovation and from local to national level.

The case study countries are vigorously promoting silver innovation for:

Better home care and urban environments for greater independence.

New ways of mobilising trusted networks to provide social support of all kinds that can improve everyday life.

Governments are focusing on:

The transformational opportunities of ICTs

Social innovation for greater user involvement

Expanding Opportunities for Partnerships