Digital Innovation

Foreword
Reader’s guide
	References
Acknowledgements
Acronyms and abbreviations
Executive summary
Main findings and recommendations
	Main findings
		Digital transformation affects innovation in all sectors, but in different ways
		Digital innovation is changing market structures and dynamics
		Countries are adopting innovative policy approaches for the digital age
	Policy recommendations
		Priority areas of policy action
		Principles for innovation policy areas that need adjustment in the digital age
		Policy areas requiring a sectoral approach
Chapter 1.  Characterising innovation in the digital age
	Introduction
	1.1.  How is the digital transformation changing innovation?
		Lower production costs and fluidity
		New characteristics of innovation
			(1) Data as a core input for innovation
				Changing research processes
				Enabling new services and business models
				Enhancing customisation
				Optimising processes
			(2) Services innovation enabled by digital technologies
				Manufacturing firms expand into digitally enabled services
				Services innovations build on digital technologies
			(3) Faster innovation cycles
				Designing, prototyping and testing new products and services
				Experimenting with (not fully finished) products and services on the market
				Regular upgrading and versioning
				Personalisation
			(4) Collaborative innovation
				Data sharing
				Business incubation
				Open innovation among actors
				Platforms and other innovation ecosystems
				Corporate venture capital investments and acquisitions
				In-house collaborations
	1.2. What are the impacts of digital innovation on market dynamics?
		Facilitating market entry and competition
		Market dynamics
	1.3. Conclusion
	References
Chapter 2.  Impacts of the digital transformation on innovation across sectors
	Introduction
	2.1. Current sector-specific digital technology applications
		Agri-food sector
		Automotive industry
		The retail sector
	2.2. Digital technology opportunities for innovation: present and future
		(1) Opportunities for digitalising final products and services
		(2) Opportunities for digitalising processes
		(3) Opportunities for creating digitally enabled business models and markets
	2.3. Data needs and challenges for innovation
	2.4. Digital technology adoption and diffusion trends
		(1) Capabilities to uptake new digital technologies
		(2) Presence of market disruptors
		(3) Sectoral characteristics
		(4) Consumer demands and attitudes towards change
	2.5. Differences within sectors
	2.6. Conclusion
	Annex 2.A1. Definition of sectors covered in the report
	References
Chapter 3.  How should innovation policies be adapted to the digital age?
	Introduction
	3.1. Data access policies
		Ensure access to data for innovation, taking into account data diversity
		Explore the development of data markets
	3.2. Policies to support innovation and entrepreneurship
		Ensure that policies are anticipatory, responsive and agile
		Support service innovation that implements digital technologies
		Adapt the IP system
		Support the development of generic digital technologies
	3.3. Public research, education and training policies
	3.4. Policies to develop competitive, collaborative and inclusive innovation ecosystems
		Promote competitive innovation ecosystems
		Support collaboration for innovation
		Support digital technology adoption by firms, particularly SMEs
		Support social and territorial inclusiveness
	3.5. Principles for innovation policies in the digital age
		Set national policies in the context of global markets
		Engage with citizens to address technology-related public concerns
		Adopting a sectoral approach to policy making when necessary
	3.6. Conclusion
	References
Chapter 4.  Policies to stimulate digital innovation’s diffusion and collaboration
	Introduction
	4.1. Supporting digital technology adoption and diffusion
		(1) Awareness raising and capacity building
		(2) Financial support for digital technology investments
		(3) Demonstration and testing of new digital technologies
		(4) Access to most advanced technologies and expertise
	4.2. Spurring collaborative innovation
		(1) Platforms and forums for strategic planning
		(2) Collaboration facilitators: intermediaries, networks and clusters
		(3) Collaborative research and innovation centres
		(4) Crowdsourcing, open challenges and living labs
		(5) Financial support for collaborative R&D
	4.3. Conclusion
	Annex 4.A1. Overview of country policy case studies
	References
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