Technology, Innovation, ICT and Economic Performance April, 2001 Risaburo NEZU, Director Directorate for Science, Technology and Industry Organisation for Economic Co-operation and Development (OECD)

1 Average real GDP growth rate, % Source: OECD

2 Average real GDP growth rate, % Source: OECD

3 Trend growth in GDP per capita, Average annual % change Note 1)Total Norway. 2) )West Germany for ; Total Germany for Source: OECD

4 Labour utilisation and trend growth in GDP per capita Average annual % change, Source: OECD

5 Convergence and divergence of GDP per capita in the OECD area

Actual 1973 to 1995 trend growth of 1.4 percent per year 1995 to 1999 trend growth of 2.9 percent per year US Productivity in Nonfarm Business Sector Index 1992 = 100 Source: USDOC

7 US productivity growth during expansions Source: USDOC Expansions First 2 years Years 3 & 4 Years 5 & 6 Years 7 & above 2000

8 Business fixed capital formation(current)/GDP(current) Source: OECD

9 ICT capital and GDP growth Source: OECD

10 Growth effect of ICT Source: OECD

11 The price of ICT investment Source: OECD

12 Breakdown of labour productivity growth Source: OECD Left: , Right:

13 Labour productivity contributions by selected service industries,% point (a) Wholesale and retail trade; repairs (b) Finance, insurance, real estate and business services Source: OECD

14 Pick-up in MFP growth and increase in ICT use Note: Change in multi-factor productivity growth corrected for hours worked, average 1990s minus average 1980s. Source: OECD

15 Pick-up in MFP growth and Internet access costs Note: Change in multi-factor productivity growth corrected for hours worked, average 1990s minus average 1980s. Source: OECD

16 Internet access basket for 20 hours at peak times using discounted PSTN rates, September 2000, Including VAT Source: OECD

17 National long-distance market shares of new operators (share of switched minutes) Source: OECD

18 International market shares of new market entrants (share of minutes of international traffic) Source: OECD

19 Status of Wireless Liberalisation Source: OECD

20 The impact of liberalisation on bandwidth prices Source: OECD

21 Network expansion and GDP growth Source: OECD United States United Kingdom Turkey Switzerland Sweden Portugal Poland Norway New Zealand Netherlands Mexico Luxembourg Korea Japan Italy Ireland Iceland Hungary Greece Germany France Finland Denmark Czech Republic Canada Austria Belgium Australia Spain Actual GDP per capita growth in the OECD area, Network expansion (fixed network, cellular mobile, Internet hosts weighted by usage) CAGR%,

22 Local market shares by competitive new entrants (share of access lines) Source: OECD

23 Notes: The average of index (1990 = 0) in each country weighted by the number of mainlines. Calculation is based on PPPs expressed in USD. Luxembourg and New Zealand are not included. Source: OECD OECD tariff rebalancing by distance

24 Access costs and uptake of the Internet Source: OECD Average Date of Initial PSTN Liberalisation*, Pricing and Hosts Price Hosts US$ : : 1993 US$ : : 1996 US$ : : 1996 US$ : : 2000 * the average is calculated using the expected date of liberalisation for monopolies.

25 The cost of leased lines in the OECD, August 2000 Charges for a basket of national leased lines of 2 Megabits per second Source: OECD

26 Internet hosts per 1000 inhabitants in G7 countries Source: OECD

27 Online Time and Pricing Hours spent online (average per month) Source: OECD

28 Rapid development of electronic commerce by unmetered access (Unmetered: Australia, Canada, New Zealand, U.S.) Source:OECD and Netcraft (

29 Investment in telecommunications and roads in US Source: OECD

30 Investment in telecommunication and roads in Japan Source: OECD

31 Public telecommunication investment (USD million) Source: OECD

32 Source: OECD Cable modem lines and DSL lines per 100 Inhabitants

33 Packaged software and information technology services share of GDP: 1999 Source: OECD

34 Growth in software employment in the business sector Source: OECD

35 US H-1 Visa issued by country of origin ( ) Source: Lowell

36 Rates of turnover of IT workers by age group in the US, Expected duration with first employer by year of graduation Computer science and engineering graduates in the US Source: NRCSource: McKinsey

37 R&D Expenditures (1999) PTOs and telecommunications equipment manufacturers US$ million% Source: OECD

38 R&D/Sales in large information technology companies in US Source: National Research Council

39 Number of patents in US and Japan Source: OECD

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

41

42 Destination of the government R&D funds by sector of performance, 1999 or nearest year available Source: OECD As % of total public R&D funding

43 Business R&D financed by government % of GDP, 1999 Source: OECD

Source: OECD

45 Intermediary business for the intellectual property rights transfer Source: MITI, Patent Office

46 The entrepreneurial route Rate of spin-offs formation in the 1990s Yearly average number of spin-offs from public research per billion $ of publicly-funded R&D Source: OECD United States France Canada Belgium Australia Japan(?)

47 (Note2) 1971 – August, 1998 (publication year) Japanese applicants’ patent published by JPO (Note1) 1971 – 1998 (grant year) U.S. applicants’ patent granted by USPTO The share of Genetic engineering patent filed by US applicant in US The share of Genetic engineering patent filed by Japanese applicant in Japan Biotechnology Patent in US and Japan Source: Japanese Patent Office

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

49 The level of entrepreneurial activity across OECD countries Source: OECD

50 Source: EVCA, various Yearbooks, NVCA, various Annual Reports, Canadian Venture Capital Association (CVCA), Asian Venture Capital Journal, The 2000 Guide to Venture Capital in Asia. Venture capital investment in early stages and expansion “country of management” approach, % of GDP

51 Source: OECD Regulatory barriers to entrepreneurship, 1998

52 Barriers to entrepreneurship and venture capital activity Notes: Excluding “license and permit systems”, “sector specific administrative burdens” (for road freight and retail distribution), and “antitrust exemptions” (for public enterprises). Source: OECD

53 Link between changes in multi-factor productivity (MFP) growth and administrative barriers to start-ups Note 1. Change in multi-factor productivity growth corrected for hours worked, average 1990s minus average 1980s. Note 2. The scale of indicators is 0 ‑ 6, from least to most restrictive. Based on the situation in or around Source: OECD

54 Private venture capital investment by stage and sector Note: 1) Data refer to Source: OECD

55 “New” equity markets in the OECD countries Source: OECD

56 Market capitalisation of shares of domestic companies (main and parallel markets) (% GDP) Source: International Federation of Stock Exchanges (FIBV)

57 Stock options as a % of CEO base pay, 2000 (and their change from 1996) Source: Tower Perrin % of base pay

58 Share of market income in different income groups (Change in market income share, mid 1980s to mid 1990s) Note: Data for Greece, Hungary, Mexico and Turkey refer to market incomes net of taxes, and therefore not comparable with the results from the other countries Source: OECD

59 Source: OECD Income is an important determinant of access Internet access by household income