OECD Science, Technology and Industry Outlook

Foreword......Page 4
Table of Contents......Page 5
Regaining momentum in science, technology and innovation......Page 10
Governments are strengthening science, technology and innovation systems......Page 11
Getting the most out of public/private partnerships......Page 13
Stimulating innovation in the service sector......Page 14
Ensuring sufficient supplies of human resources for S&T......Page 15
Benefiting from globalisation......Page 16
Chapter 1. Regaining Momentum in Science, Technology and Industry......Page 18
A changing macroeconomic environment......Page 19
An innovation-led recovery?......Page 20
Figure 1.1. Technology balance of payments for OECD countries, 2002......Page 21
Figure 1.2. Trends in R&D intensity, 1995-2003......Page 22
Growing commitment to R&D......Page 23
Box 1.1. The EU’s 3% target......Page 24
Public research organisations are better financed......Page 25
Slowdown in business-sector R&D driven by United States......Page 26
Figure 1.5. Business R&D as a share of GDP in major OECD regions......Page 27
Collaboration remains key......Page 28
Box Figure 1.1. Business R&D intensity and share of R&D performed by firms with 500 or more employees......Page 29
Figure 1.7. Government funding of business R&D, 1991 and 2002......Page 30
Capitalising on science and technology investments......Page 31
Figure 1.8. Scientific and engineering publications by country, 1991 and 2001......Page 32
Figure 1.9. Patent filings in the main patent offices......Page 33
Figure 1.10. Number of triadic patent families......Page 34
Numbers of researchers are growing......Page 35
Figure 1.11. Business researchers per thousand employees in OECD countries, 1995 and 2002......Page 36
Figure 1.12. Growth in employment in HRST occupations, 1995-2002......Page 37
Figure 1.13. R&D intensity in non-OECD economies as a share of GDP......Page 38
Foreign affiliates expanding......Page 39
Figure 1.15. R&D investments by foreign affiliates, 1995-2001......Page 40
Figure 1.17. Outward investment in R&D by US-owned firms......Page 41
Conclusion......Page 42
Notes......Page 43
References......Page 44
 Chapter 2. Recent Developments in Science, Technology and Innovation Policies......Page 45
Introduction......Page 46
National plans for science, technology and innovation......Page 47
Table 2.1. Summary of national plans for science, technology and innovation policy in OECD countries......Page 49
Box 2.1. S&T policy in South Africa......Page 51
Changing institutional frameworks for innovation policy......Page 52
Increasing public R&D expenditures......Page 54
Prioritisation of public R&D expenditures......Page 55
Table 2.2. Science and technology priorities in OECD countries......Page 56
Changes in legal status......Page 57
New funding models: more project-based funding......Page 58
Facilitating interaction with industry......Page 59
Institutional evaluation......Page 61
Box 2.2. Forms of public support for business innovation......Page 62
Direct public funding......Page 63
Table 2.3. R&D tax incentives in OECD countries, 2004......Page 64
Stimulating entrepreneurship......Page 66
Box 2.3. Support to business innovation in China......Page 69
Public/private partnerships for research and innovation......Page 70
Promoting regional innovative clusters......Page 72
Box 2.4. HRST and S&T policy in Russia......Page 73
Boosting domestic supplies of HRST......Page 74
Box 2.5. Immigration reform for ICT workers in Australia......Page 77
Evaluating innovation policies......Page 78
Notes......Page 81
References......Page 83
Chapter 3. Public/Private Partnerships for Innovation......Page 84
P/PPs for innovation: definition and typology......Page 85
Box 3.1. Stated objectives of two selected P/PP programmes......Page 86
Figure 3.1. A typology of P/PPs......Page 87
Table 3.1. Major P/PP programmes in four countries......Page 88
Table 3.2. Share of P/PPs in competitive funding of research in France......Page 89
Figure 3.3. Expected benefits from a P/PP approach to innovation policy......Page 90
Implementing efficient P/PPs: issues and good practices......Page 91
Figure 3.4. The eight selection rounds since the inception of the CRC programme (Australia)......Page 92
Table 3.5. Some selection criteria reflecting public interest and private benefit......Page 93
Integration of P/PPs in the innovation system......Page 94
Table 3.6. Differences between science and technology communities......Page 95
Figure 3.5. The WCFS organisational diagram......Page 96
Optimal financing......Page 97
Table 3.8. Share of SMEs in the financing of 13 French public/private research networks, 2001......Page 98
Internationalisation......Page 99
Table 3.9. Indicators for the evaluation of Dutch LTIs......Page 100
Box 3.3. The measurement of additionality in the Austrian Kplus programme......Page 101
Notes......Page 102
References......Page 103
Table 3.A.1.1. Comparative features of four P/PP programmes......Page 104
Table 3.A.1.2. List of co-operative research centres (networks) currently operating, classified by technological field......Page 107
Chapter 4. Promoting Innovation in Services......Page 109
Services are of growing importance in OECD economies......Page 110
Figure 4.1. Share of market services in total value added, 1980 and 2001......Page 111
Figure 4.2. Contribution of market services to GDP growth, 1990-2001......Page 112
Innovation in services......Page 113
Figure 4.4. Contribution of market services to job creation, 1990-2001......Page 114
Figure 4.6. Expansion of knowledge-based market services, 1990-2001 or nearest available year......Page 115
Service-sector innovation varies considerably by sector and firm size......Page 116
Figure 4.b. CIS3 respondents by service sector and country......Page 117
Figure 4.7. Innovative density in the service and the manufacturing sectors, 1998-2000......Page 118
Figure 4.9. Innovative density by size class, 1998-2000......Page 119
The nature of innovation differs in services......Page 120
Figure 4.11. Product and process innovation in service and manufacturing sectors, 1998-2000......Page 121
R&D performance supports services innovation......Page 122
Figure 4.13. Share of innovative firms by activity, 2000......Page 123
Figure 4.14. Growth of business R&D expenditures, 1990-2001......Page 124
Tapping into outside sources of knowledge......Page 125
Figure 4.16. Growth of R&D intensity, services sector, 1990-2001......Page 126
Figure 4.18. ICT investment in OECD countries, 1980-2001......Page 127
Figure 4.20. Sources of information used by innovative firms in the service sector, 1998-2000......Page 128
Figure 4.21. Share of employees with higher education in the service sector, 2000......Page 129
Figure 4.23. Factors impeding innovation in services and manufacturing......Page 130
Figure 4.24. Share of new firms in the population of innovative firms in manufacturing and services, 1998-2000......Page 131
Policies to promote innovation in services......Page 132
Figure 4.26. Public funding of manufacturing and service firms, 1998-2000......Page 133
Developing human resources......Page 134
Fostering service SMEs and encouraging start-ups in services......Page 135
Conclusion......Page 136
Notes......Page 137
References......Page 138
Chapter 5. Ensuring the Supply of Human Resources in Science and Technology......Page 139
Growing demand for science and technology workers......Page 140
Figure 5.1. Researchers per thousand in total employment, 2002......Page 141
Box 5.1. Globalisation of R&D and outsourcing of science and technology employment......Page 142
Table 5.1. National goals for human resources in science and technology......Page 143
Will supply meet demand?......Page 144
Production of science and engineering graduates is expanding, but slowly......Page 145
Figure 5.2. Science and engineering degrees as percentage of new degrees, 2001......Page 146
Figure 5.4. Graduate rates at PhD levels, 2001......Page 147
Differences persist by field and level of study......Page 148
Box 5.2. Interpreting enrolment data......Page 150
Figure 5.6. Number of US degrees awarded in science and engineering fields......Page 151
Meeting demand through immigration......Page 152
Figure 5.7. Share of new students enrolled in computing, 1998-2002......Page 153
Figure 5.8. Foreign PhD students as a percentage of total PhD enrolment, 2001......Page 154
Figure 5.9. Outward and return migration of Chinese students, 1991-2001......Page 155
Box 5.4. Supply of science and technology graduates in non-OECD countries......Page 156
What can governments do to foster domestic development of HRST?......Page 157
Box 5.5. Women in science and technology......Page 158
Conclusion and outlook......Page 159
References......Page 161
Chapter 6. Multinational Enterprises and Productivity Growth: Insight at the Firm Level......Page 162
The changing role of MNEs in OECD economies......Page 163
Figure 6.1. Contribution of foreign affiliates to turnover and employment in manufacturing, 2001......Page 164
Firm-level insight into the contribution of MNEs to productivity growth......Page 165
Figure 6.3. Contribution of foreign affiliates to turnover and employment in services, 2001......Page 166
Productivity......Page 167
Table 6.1. Labour productivity growth of US non-farm private businesses, by sector......Page 168
Table 6.3. Differences in labour productivity in Belgium by type of firm......Page 169
Technology......Page 170
Figure 6.5. Relative productivity of foreign-controlled to domestically controlled plants......Page 171
Conclusions and implications......Page 172
Box 6.1. Improving statistics on MNEs......Page 173
Notes......Page 175
References......Page 176
Statistical Annex......Page 177
Table 1. Breakdown of GDP per capita into its components, 1990-2003......Page 182
Table 2. Income and productivity levels in the OECD, 1950-2002......Page 183
Table 3. Gross R&D expenditures, 1981-2003......Page 184
Table 4. GERD intensity, 1981-2003......Page 185
Table 5. GERD by source of funds, 1981-2003......Page 186
Table 6. GERD by two main sources of funds, as a percentage of GDP, 1981-2003......Page 188
Table 7. R&D expenditures by sector of performance, 1981-2003......Page 189
Table 8. GERD by sector of performance, 1981-2003......Page 191
Table 9. Business R&D expenditures, 1981-2003......Page 193
Table 10. BERD intensity, 1981-2003......Page 194
Table 11. Business R&D expenditures by source of funds, 1981-2003......Page 195
Table 12. Business R&D expenditures, by two main sources of funds, 1981-2003......Page 197
Table 13. Intensity in business R&D expenditures by sector, 1991 and 2001 or nearest years available......Page 198
Table 14. Business R&D expenditures by sector, 1991 and 2001 or nearest years available......Page 200
Table 15. R&D expenditures of affiliates under foreign control, 1991-2002......Page 202
Table 16. Share of public R&D expenditures financed by industry, 1981-2003......Page 203
Table 17. Basic research expenditures, 1981-2003......Page 205
Table 18. Basic research by performer, 1991-2003......Page 206
Table 19. Government budget appropriations and outlays for R&D by socio-economic objectives, 1991-2003......Page 207
Table 20. Tax treatment of R&D, 1990-2004......Page 208
Table 21. Total researchers per thousand employment, 1981-2002......Page 209
Table 22. Researchers by sector of performance, 1991-2002......Page 210
Table 23. Human resources in science and technology, 1995-2002......Page 211
Table 24. University graduates in science and engineering, 1988-2001......Page 212
Table 25. Triadic patent families by priority year, 1991-2000......Page 213
Table 26. Number of triadic patent families by priority year, 1991-2000......Page 214
Table 27. Science and engineering articles by country, 1988-2001......Page 215
Table 28. Portfolio of S&E articles by field, 1988-2001......Page 216
Table 29. Technology balance of payments, 1981-2002......Page 217
Table 30. Technology balance of payments, 1981-2002......Page 218
Table 31. Share of value added in total gross value added, 1991-2001......Page 219
Table 32. Trade-to-GDP ratio for goods and services, 1991-2003......Page 221
Table 33. Export ratio by industry and technology level, 1992-2002......Page 222
Table 34. Import penetration by industry and technology level, 1992-2002......Page 225
Table 35. Outward and inward foreign direct investment flows, 1990-2001......Page 228