Is there a New Economy and what are the policy implications? Thomas Andersson Directorate for Science, Technology and Industry OECD

Average annual growth rates (%) 1990-98 Contributions of labour utilisation and labour productivity to growth of GDP per capita Average annual growth rates (%) 1990-98

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

Venture capital investment in early stages and expansion as a percentage of GDP, 1995-99

Best policy practice and policy recommendations in individual areas of innovation and technology diffusion policy

Best policy practice and policy recommendations in individual areas of innovation and technology diffusion policy

Policy Implications Openness to a World of Ideas Human Capital 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

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

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

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

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

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

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

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