Transcript SERVICES PRODUCTIVITY IN OECD ECONOMIES

Innovation, Competitiveness and Economic Development
AFDC 2006 Forum, Session One
21-22 September, 2006
Yoshiaki TOJO
Head, Economic Analysis and Statistics Division
Directorate for Science, Technology & Industry
OECD
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Key Messages:

Innovation becomes increasingly important
for sustainable growth and development in
globalised, ICT driven, knowledge-based
economy

Open Innovation paradigm is emerging, in
which intellectual asset management and
business models play a larger role.

Comprehensive package of efficient
framework policies and science & technology
policy is necessary to modernise national
innovation system.
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Message 1
Innovation becomes increasingly
important for sustainable growth
and development in globalised,
ICT driven, knowledge-based
economy
3
Investment in R&D has been increasing,
reflecting improved economic environment and
growth of knowledge intensive industries…
Trends in R&D Intensity(1) by area, 1991-2004 (as % of GDP)
4
Non-OECD countries are also increasing their
presence in worldwide R&D activities…
R&D intensity in non-member countries
1995 (1)
% of GDP2004 (3)
2000 (2)
%
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Israel
Chinese
Taipei
Singapore
Slovenia
China
Source: OECD, Main Science & Technology Indicators database
Russian
Federation
South Africa
Argentina
Romania
5
… and increasing their presence in worldwide
R&D activities.
Researchers per 1 000 employment
12
Japan
114
10
285
United States
8
Russian
Federation
14
17
6
Chinese
Taipei
EU25
211
4
China
2
R&D expenditures
in billions of current PPP
India
85
0
0
21
1
2
OECD STI Scoreboard 2005
Source: OECD, Main Science & Technology Indicators database
3
4
GERD as % of GDP
6
China accounted for half of the non-OECD share
of the R&D expenditure
1600
Gross Domestic Expenditure on R&D in China, 1995-2003
constant price
current price
100 million yuan
1400
1200
1000
800
600
400
200
0
1995
1996
1997
1998
1999
2000
Source: China Science and Technology Indicators, 2004
2001
2002
2003
7
Increasing business-sector performed R&D
(BERD)…
Trends in BERD Intensity by area, 1991-2004 (as % of GDP)
8
… accounts for most of the cross-country
dispersion of R&D intensity…
Expenditures on R&D performed in the public and business sectors
(as % of GDP, 2003)
9
… partly reflecting country-specific industry
structure.
R&D Intensity in the business sector adjusted for variations in industry structure,
(average over 1991-2002, as % of business value added)
10
Investment in knowledge (R&D, education, & software)
is catching up for that in tangible capital.
Investment in knowledge versus investment in gross fixed capital formation
Knowledge Investment > GFCF
11
In some countries intangible assets match fixed
capital stock.
Intangible Capital Accumulation in the United States
(% of business output)
IAs
= 10~11%
GFCF
= 11%
12
Changes in business R&D expenditure are
mirrored by changes in patenting.
Trends in Triadic Patent Families
13
R&D investment positively co-relates with
triadic patent generation…
Number of Triadic Patents per million of working age population
and business-sector R&D Intensity
14
… and innovation in manufacturing …
Share of successful innovators and business-sector R&D Intensity
in manufacturing
15
… but not with innovation in services…
Share of successful innovators and business-sector R&D Intensity
in services
16
… since there are various non-R&D investments
for innovation.
Share of innovative firms engaged in different innovation activities, 2000 (%)
Services
%
Manufacturing
70
60
50
40
30
20
10
0
Acquisition of
machinery and
equipment
Training
Intramural R&D
Market introduction
of innovations
Design, production,
deliveries
Acquisition of
know ledge
Note: Figures are merely indicative (simple average of available country shares) and should be considered
as such.
Source: Figure 4.13 in “Promoting Innovation in Services”, Chapter 4, inOECD Science, Technology and
Industry Outlook 2004, based on Eurostat, CIS3 survey 2004 (OECD, 2004b).
External R&D
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Investment in Intellectual Assets in the United States,
% of business output
Non-R&D
Investment
18
Corrado, Hulten, Sichel (2006)
Intangible Capital Stock estimated for :
Computerized information
R&D, scientific
R&D, non-scientific
Brand equity
Firm-specific resources
Contribution to Labour Productivity
Labour Productivity
Tangible Capital deepening
Intangible Capital deepening
Labour composition
MFP
inv (1998-00)
$ 154 bil
$ 201 bil
$ 223 bil
$ 140 bil
$ 365 bil
1973-95
1.63
.55
.43
.25
.41
δ
33%
20%
20%
64%
40%
1995-2003
3.09
.85
.84
.33
1.08 19
Innovation becomes increasingly important for
sustainable growth and development …



Innovation is the key driver of economic growth - new and
improved products, processes and services account for the
bulk of economic growth since the Industrial Revolution.
Innovation is of growing importance to economic activity in
OECD countries – global competition is forcing all countries to
upgrade their economic activity and move up the value chain.
A growing number of countries has recognised the importance
of innovation, e.g.:
– Lisbon strategy in the EU
– Policy strategies in the US, Japan and Korea to strengthen
innovation
– Growing policy focus outside the OECD, notably in China.
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Message 2
Open Innovation paradigm is emerging,
in which intellectual asset management
and business models play a larger role.
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Innovation model was recognised as closed and
unilinear.
Closed Innovation Model
Internal
Technolog
y Base
Market
Research
Development
Commercialisation
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Emerging open innovation paradigm has various
input and output channels
Open Innovation Paradigm
Licensing, Technology Spin-offs
Internal
Technology
Base
External
Technology
Base
Other
firm’s
Market
Market
Technology
Market
Technology Insourcing
Research
Development
Commercialisation
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Major Characters of Open Innovation
 Rise of Innovation Intermediaries and Their Markets
– Equal importance given to external knowledge and
internal knowledge.
– Outbound Flows of Knowledge and Technology
 Centrality of the Business Model in Extracting Value
from R&D
– Dilemma in Innovation Management:
– Proactive and Nuanced Role of IP management
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R&D activities are increasingly globalised…
R&D expenditure of foreign affiliates,
% of R&D expenditure of enterprise, 1995 & 2005
25
… so the invention activites.
China
EU-15
Japan
United States
Domestic ow nership of inventions made abroad
%
%
Foreign ow nership of domestic inventions
70
40
60
35
50
30
China
United States
EU-15
Japan
25
40
20
10
10
5
0
0
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
15
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
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Notes:
1. Share of patent applications to the EPO owned by foreign residents in total patents invented domestically.
2. Share of patent applications to the EPO invented abroad in total patents owned by country residents.
Data are according to the residence of the inventors. The EU is treated as one country; intra-EU co-operation is excluded.
Source: OECD, Patent Database, March 2005.
出处: China’s Progress Towards a Knowledge-Based Economy , M. Sharper (2005)
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Guellec and van Pottelsberghe (2004)
Long-term elasticities of output with respect to R&D variables
Business R&D
0.132
Foreign R&D
0.459
Public R&D
0.171
Luintel and Kahn, mimeo
Mean elasticities of R&D variables
Business R&D
0.025
Foreign R&D
0.010
Public R&D
0.022
* Luintel and Kahn includes human capital, public infrastructure,
hi-tech trade, and FDI in their GMM System estimation. 27
Human resources for R&D activities also become mobile.
Immigrants as a % of highly skilled native
population
Emigrants as a % of highly skilled in the country
of origin
Main
Destinations
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OECD STI Scoreboard 2005
Intellectual Assets should be developed, retained,
and commercialised for value creation by firms.
Development/Control
Commercialisation
Intangible
investment
Intellectual
Assets
Accumulation
Research &
Development
Knowledge
(IPR, Product, Process)
Technology Market
Training
Education
Human Resources
(Skills, Creativity,..)
Product Market
Back Office Spending
Marketing
Customer Relations…
Organisation / Network
Reputation / Brand
Productivity
Value Creation
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Ability to create economic returns from intellectual
assets also depends upon economy-wide business
environments ( IAs for Nation / Region / Cities).
National / Regional IAs
Knowledge Pool
Human Resource Pool
Creative Culture
• Openness
• Education
• Public R&D
• Product Market Reg.
• Labour Market Reg.
• IPR Regime
• Entry and Exit
Diffusion/Mobility
Firm-level IAs
Commercialisation
Development/Control
Intangible
investment
Intellectual
Assets
Accumulation
IA-based Management
Value Creation
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Major Findings of the IA-VC Project
 Intangible determinants, including R&D, play substantial and
growing role in economic growth. They works in combination.
 Treat R&D intensity as one of the benchmarks.
 Good management is indispensable for earning economic
returns from R&D/innovation activities.
 Create innovation-friendly business environment,
Efficient financial market and corporate governance,
flexible market, good education, Public-Private Partnership.
.
 Insufficient comparable data, under-utilised micro-data.
 Co-ordinate data gathering on intangible determinants
Harmonised analyses on national micro-data .
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Message 3
Comprehensive package of efficient
framework policies and science &
technology policy is necessary to
modernise national innovation system.
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National innovation system is more than science
and technology policies.
Policy Impact on R&D intensity growth in 1990s
1.
Science policies include
R&D tax incentives, subsidies for
private R&D, business funding of
non-business R&D, non-business
R&D intensity, intellectual
property rights and absorptive
capacity (capacity to understand
and make use of foreign
knowledge).
2.
Framework conditions
include financial factors, real
interest rates, real exchange rates,
foreign exposure (foreign R&D
stock and openness), import
penetration, product market
regulation, employment
protection legislation, human
capital and the domestic
economy-wide average wage.
Source: OECD (2005),
Innovation in the Business Sector.
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Going for Growth 2006
Framework policies that influence innovation
performance-1



Education
– Basic educational skills
– Training of scientists and engineers
Financial markets
– Access to financing important for innovation, especially
to risk/venture capital
– Taxation, Portfolio restrictions in institutional investors;
barriers to cross-border M&A; bankruptcy procedures
Labour markets
– Employment protection laws influence innovation via
ability of firms to hire/fire and incentives to invest in
training
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Going for Growth 2006
Framework policies that influence innovation
performance-2


Openness for overseas knowledge pool
– Foreign R&D makes large contribution to productivity
growth
– Multiple channels: FDI, international mobility of human
resources, participation of foreign firms/researchers in
R&D programmes, etc.
Market competition and IPR: striking balance
– Strong PMR encourages investments in innovation to
stay ahead of competitors, but can weaken firm’s
ability to appropriate returns
– Strong IPR can enable firms to appropriate returns
from investment in innovation, but can jeopardise
quality of patents and promote diffsion
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Going for Growth 2006
Innovation policies
Governance of Public Research




Inter-ministerial coordination mechanisms
New priority-setting mechanisms
Changing funding models Revised evaluation
methods
Increasing autonomy
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Going for Growth 2006
Innovation policies
Industry-Science Linkage


Importance to innovation
– Improve match between public research and industry
needs
– Facilitate transfer of knowledge/technology to industry
Policy measures
– Reforms governing the ownership of IPR resulting from
publicly funded research.
– Funding for commercialisation of public-sector
technology and/or support of technology transfer
offices
– Establishment of public/private partnerships to share
cost, risks and jointly determine objectives
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Further OECD works are in preparation on
intellectual assets and value creation as well as
open innovation paradigm, such as…
1. Business environment and corporate governance
mechanism to improve IA-based management
 Industry-Specific Template for IA intensive firms
 IA-management Tools for Small-Cap Listed Companies
2. IAs for nation, region, economic clusters
 Internatinal / Domestic spill-overs (positive & negative)
 Best practices of Open Innovation Paradigm in Globalisation
3. Intellectual property rights and other institutional design
to balance diffusion of knowledge and control of IAs
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Thank you
[email protected]
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