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ICT, Innovation and Policy Implications in the New Economy Thomas Andersson Directorate for Science, Technology and Industry OECD ICT, Innovation and Policy.

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Presentation on theme: "ICT, Innovation and Policy Implications in the New Economy Thomas Andersson Directorate for Science, Technology and Industry OECD ICT, Innovation and Policy."— Presentation transcript:

1 ICT, Innovation and Policy Implications in the New Economy Thomas Andersson Directorate for Science, Technology and Industry OECD ICT, Innovation and Policy Implications in the New Economy Thomas Andersson Directorate for Science, Technology and Industry OECD

2 Trend growth of GDP per capita in the OECD area over the past two decades (Total economy, percentage change at annual rate)

3 Contributions of Labour Utilisation and Labour Productivity to Growth of GDP Per Capita Average annual growth rates (%)

4 + =

5 Investment growth in ICT equipment and software

6 The US is not alone in experiencing the growth effects of ICT

7 Increasing access to communications Million Mobile Subscribers in OECD Fixed Network Access Channels in OECD Telecommunication access paths (fixed + mobile) have doubled in the last five years. The total passed one billion in the OECD in Source: OECD

8 Liberalisation is leading to lower bandwidth prices across Europe Source: OECD

9 Average Price of 20 Hours of Internet Access and Internet Host Penetration Hungary Ireland Czech Republic Luxembourg Spain Austria Switzerland Portugal Germany Poland Mexico Japan Denmark Turkey Greece France United Kingdom Italy Netherlands Korea Norway New Zealand Sweden Australia Iceland Finland United States Canada Belgium OECD average Internet Hosts (September 1999) Average Price for 20 hrs Internet access , in

10 Connectivity indicator by firm size in several Member countries (%), 2000 Source: UK DTI Note: The connectivity indicator measures the number of business that either have a web site, make frequent use of external or use EDI.

11 ICT use and the pick-up in MFP growth Average PC base per 100 inhabitants, 1999 Source: OECD

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13 RM Ideas technol. scientists customers suppliers competitors Design Dev. R: research M:market THE INNOVATION PROCESS NOT LINEAR

14 Science linkage in selected countries Measured by average number of scientific papers in US patents Science linkage in selected countries Measured by average number of scientific papers in US patents Source: CHI Research

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16 Venture Capital Investment in Early Stages and Expansion as a Percentage of GDP,

17 Barriers to entrepreneurship and venture capital (country of management approach) Source: OECD calculation

18 GDP growth and comparable start-up rates GDP Growth, Source: OECD

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20 Changing Requirements For Human Capital Increased demand (shortages) in knowledge- based industries, especially ICT and services Strong demand for researchers and scientists, especially in the business sector and outside the US Flexibility and employability To keep up, firms and workers must invest in human capital Distance learning on demand

21 The significance of NIS Helps explain diverse economic performance Helps focus on national characteristics Helps focus on systemic failures in addition to market failures Helps refocus from optimum/equilibrium to real problems/effectiveness

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25 Best Policy Practice and Policy Recommendations in Individual Areas of Innovation and Technology Diffusion Policy

26 Policy Implications Spreading the Risks – government as a sponsor of high-risk research – improving networks of innovation – new types of finance and risk management Openness to a World of Ideas Human Capital Maximizing the benefits of ICTs – regulatory reform – increasing the absorptive capacity of services

27 What it means for Regulation Domestically, an integrated approach of – Minimal non-discriminatory regulation, and – Market-driven self-regulatory mechanisms Internationally, no global regulation, instead – policy co-ordination underpinned by – general policy principles Participation of the stakeholders in policymaking

28 Raising Quality of education, not just quantity Expanding IT literacy skills throughout education systems Tailoring higher education in science and technology to demands for soft skills and interdisciplinarity Building public/private partnerships to meet specific IT skills needs Converging initiatives Human Capital: Policy Issues and Current Responses:

29 Instruments for Policy Implementation Better prioritisation Broader policy packages Decentralisation More outward-looking policy frameworks, transparency and critical review Co-operation with Stakeholders, including Public-private partnership

30 Scientists Innovation Policy Positioning: Traditional Research Education Industry Finance Trade Etc. Labour Unions Firms NGOs Environment

31 Scientists Innovation Policy Positioning: Traditional Research Education Industry Finance Trade Etc. Labour Unions Firms NGOs Environment I.P.

32 Scientists Innovation Policy Positioning: Implicit Research Education Industry Finance Trade Etc. Labour Unions Firms NGOs Environment

33 Scientists Research Education Industry Finance Trade Etc. Labour Unions Firms NGOs Environment Innovation Policy: Explicit Positioning I. P.

34 Scientists Research Education Industry Finance Trade Etc. Labour Unions Firms NGOs Environment Innovation Policy: Explicit Positioning I. P.


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