Template-type: ReDIF-Paper 1.0 Author-Name: Albert Bravo-Biosca Author-Workplace-Name: Nesta Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Carlo Menon Author-Workplace-Name: OECD Title: What Drives the Dynamics of Business Growth? Abstract: Differences in the dynamisms of economies are persistent. Notwithstanding the growing body of evidence documenting these large cross-country differences, our understanding of what drives them is still rather limited. This paper seeks to help close this gap. Using unique data for ten countries the analysis sheds light on the factors that shape the distribution of firm growth and on what role policies play in driving cross-country differences. The paper provides new evidence on the link of labour market regulation, bankruptcy legislation, financial market development and R&D support policies with growth dynamics. The study goes beyond looking at differences in average growth rates as it analyses changes in the whole distribution of firms. Creation-Date: 2013-04-04 Number: 1 Handle: RePEc:oec:stiaac:1-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ken Warwick Author-Workplace-Name: Warwick Economics Title: Beyond Industrial Policy: Emerging Issues and New Trends Abstract: This paper reviews the evidence on emerging thinking and new trends in the sphere of industrial policy. The paper adopts a broad and inclusive definition of industrial policy, and proposes a new typology based on the orientation of policy and the policy domain. Looking at a typology according to the policy domain, the paper proposes a framework based on growth accounting, which parallels the evolution of thinking about the rationale for industrial policy interventions, which has moved from a traditional approach based largely on product market interventions (production subsidies, state ownership, tariff protection), through market failure-correcting taxes and subsidies operating mainly on factor markets (R&D incentives, training subsidies, investment allowances, help with access to finance) to a focus on interventions that help build systems, create networks, develop institutions and align strategic priorities. Creation-Date: 2013-04-05 Number: 2 Handle: RePEc:oec:stiaac:2-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Biotechnology for the Environment in the Future: Science, Technology and Policy Abstract: There are at least two policy regimes to be considered, one for environmental biotechnology, and another for industrial biotech. Environmental biotechnology is focused on biotechnologies for environmental clean-up, and much of the policy in this area is around compliance. Industrial biotechnology has quite different policy objectives and only started to grow as a field with the worldwide interest in biofuels. Much of the world now has targets for bioenergy and favourable policy regimes to stimulate production and use of biofuels, but sustainability is now a real issue for biofuels production. This should become an international theme as more countries start to adapt biofuels as part of their energy supply. Creation-Date: 2013-04-10 Number: 3 Handle: RePEc:oec:stiaac:3-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Regulatory Frameworks for Nanotechnology in Foods and Medical Products: Summary Results of a Survey Activity Abstract: Nanotechnology applications have been reported across a number of specific product areas including foods and medical products, which are subject to regulatory oversight in many countries to ensure their safety and, in some cases, effectiveness. As nanotechnology develops, countries/regions have begun to develop, refine, and/or articulate regulatory approaches for foods and/or medical products, and invest in regulatory science and other research efforts to support the responsible development of nanotechnology in these areas. The OECD Working Party on Nanotechnology undertook a project to provide an inventory of regulatory approaches, legislative regimes, and government-sponsored regulatory science research and other research programmes, institutions, and infrastructure in foods and medical products that involve the application of nanotechnology. A survey was carried out and the responses are compiled and analysed in this paper. Creation-Date: 2013-04-24 Number: 4 Handle: RePEc:oec:stiaac:4-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Nanotechnology for Green Innovation Abstract: The paper brings together information collected through discussions and projects undertaken by the OECD Working Party on Nanotechnology (WPN) relevant to the development and use of nanotechnology for green innovation. It relies in particular on preliminary results from the WPN project on the Responsible Development of Nanotechnology and on conclusions from a symposium, organised by the OECD WPN together with the United States National Nanotechnology Initiative, which took place in March 2012 in Washington DC, United States, on Assessing the Economic Impact of Nanotechnology. It also draws on material from the four background papers that were developed for the symposium. Creation-Date: 2013-06-14 Number: 5 Handle: RePEc:oec:stiaac:5-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Emerging Trends in Biomedicine and Health Technology Innovation: Addressing the Global Challenge of Alzheimer's Abstract: The economic and social impact of chronic brain disorders (CBD) such as Alzheimer’s disease (AD) and other neurodegenerative diseases will become the number one public-health problem worldwide, directly affecting 100 million people by 2050. On-going demographic trends, namely ageing populations worldwide, are leading to the unprecedented expansion of consumer demand for healthcare services. Healthcare systems worldwide soon will confront a serious crisis as a result of significant growth of the healthcare market, in a climate of shrinking resources. Creation-Date: 2013-06-14 Number: 6 Handle: RePEc:oec:stiaac:6-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Knowledge Networks and Markets Abstract: This report aims to shed light on the role of markets and networks for knowledge-based assets. Knowledge Networks and Markets (KNMs) comprise the wide array of mechanisms and institutions facilitating the creation, exchange, dissemination and utilisation of knowledge in its multiple forms. This document provides new evidence on the knowledge-sourcing strategies of firms and their role in shaping innovation activities, according to different characteristics, and their impact on performance. It proposes a conceptual framework for understanding how KNMs support knowledge flows and the transfer of intellectual property (IP) rights, supported by a number of novel examples. It considers more specifically some developments in the market for IP rights, looking in the first instance at the evidence on the size of the market and the role of intermediaries. The role of public policies in the IP marketplace is also considered, with particular emphasis on some new forms of policy interventions such as government-sponsored patent funds. This document briefly reviews some key features of the markets and networks for knowledge originating in public research organisations, as well as the role of intermediaries such as technology transfer offices, whose role has been changing rapidly in recent years. Finally, the analysis of knowledge markets is extended to the market for knowledge embodied in highly skilled employees. The mixed impact of mobility on innovation is noted, considering in particular the use of agreements to restrict the movement of human capital and the potential implications of their enforcement. Some proposals for inclusion in a future measurement agenda are outlined. Creation-Date: 2013-06-19 Number: 7 Handle: RePEc:oec:stiaac:7-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Public Health in an Age of Genomics Abstract: This report presents the findings of a research project to investigate the drivers and criteria shaping the application of genomic biotechnology to health in different national settings, and the barriers to implementation nationally and internationally. A case study approach was adopted for the project. The findings are based on the active participation in the survey of seven self-selected countries, including both OECD member and non-member countries (Finland, Israel, Luxembourg, Mexico, the United Kingdom, China and South Africa). The report outlines a number of potentially important patterns that are seen to emerge when the country case studies are set alongside one another and viewed in transnational perspective. The data, albeit based on limited evidence from a small sample of countries, suggest a significant divergence in the way that different countries are tending to adopt genomics for public health, which may have important implications for thinking about how genomic science and technology might best be employed in the interests of global public health. Creation-Date: 2013-08-02 Number: 8 Handle: RePEc:oec:stiaac:8-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karen E. Wilson Author-Workplace-Name: OECD Author-Name: Filipe Silva Author-Workplace-Name: OECD Title: Policies for Seed and Early Stage Finance: Findings from the 2012 OECD Financing Questionnaire Abstract: This report highlights the growth in support for financial instruments for seed and early stage firms across OECD member countries. These instruments include grants, loans and guarantee schemes, tax incentives and equity funds. This increased support is linked to the recent financial crisis and the growing concern about young firms’ access to finance. The paper notes that framework conditions play an important role in access to finance and must be taken into consideration as a significant part of the policy mix. Demand-side policies to develop entrepreneurial and investment talent and networks are also critical. The role of evaluation and the need to better link policy objectives and outcomes are also discussed. Creation-Date: 2013-10-25 Number: 9 Handle: RePEc:oec:stiaac:9-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Policies for Bioplastics in the Context of a Bioeconomy Abstract: This paper explores the development of the bioplastics sector and its role in national bioeconomy strategies. It finds that bioplastics are at a disadvantage compared to some other biobased products, notably biofuels, that often benefit from preferential treatment. It also notes that greater efforts are needed at the international level as regards standards to avoid creating barriers to international trade in bio-based products. Creation-Date: 2013-10-28 Number: 10 Handle: RePEc:oec:stiaac:10-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Toward New Models for Innovative Governance of Biomedicine and Health Technologies Abstract: This report examines examples of new and emerging governance models that aim to support the responsible development of diagnostics and treatments based on the latest advances in biomedicine. In particular, it presents programmes and initiatives that aim to manage uncertainty in the development and approval of new medical products and thereby to improve the understanding of the risk/benefit balance. It also identifies some of the main challenges for policy makers, regulators and other communities involved in the translation of biomedical innovation and health technologies from the laboratory bench to point of care. Creation-Date: 2013-12-05 Number: 11 Handle: RePEc:oec:stiaac:11-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Workshop on Integrating Omics and Policy for Healthy Ageing: Synthesis Report Abstract: The increase in the human life span is a testament to the economic, social and medical progress made over the course of the last century. However, an ageing population brings some new challenges both to healthcare systems and to medicine in terms of the increased manifestation of specific diseases primarily seen in the elderly. Biomedical innovation, and in particular research into “omics technologies”, offers the promise of new means of detection, prevention and treatment of age-related disabilities and diseases. But the development of these new technologies will not be without challenges, in particular with respect to the difficulty of translating technological advances into innovation in the clinical setting. This report provides a synthesis of a March 2013 workshop organised by the OECD and the Human Genome Organisation (HGO) which focused on latest advances in omics technologies for healthy ageing and the policies and practices needed to facilitate their responsible development and integration in medical research, innovation and health policy. Creation-Date: 2014-01-24 Number: 12 Handle: RePEc:oec:stiaac:12-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Intelligent Demand: Policy Rationale, Design and Potential Benefits Abstract: Policy interest in demand-side initiatives has grown in recent years. This may reflect an expectation that demand-side policy could be particularly effective in steering innovation to meet societal needs. In addition, owing to constrained public finances in most OECD countries, the possibility that demand-side policies might be less expensive than direct support measures is attractive. Interest may also reflect some degree of disappointment with the outcomes of traditional supply-side measures. This paper reviews demand-side innovation policies, their rationales and importance across countries, different approaches to their design, the challenges entailed in their implementation and evaluation, and good practices. Three main forms of demand-side policy are considered: innovation-oriented public procurement, innovation-oriented regulations, and standards. Emphasis is placed on innovation-oriented public procurement. Creation-Date: 2014-02-14 Number: 13 Handle: RePEc:oec:stiaac:13-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Peter N. Gal Author-Workplace-Name: OECD Author-Name: Carlo Menon Author-Workplace-Name: OECD Title: The Dynamics of Employment Growth: New Evidence from 18 Countries Abstract: Motivated by the ongoing interest of policy makers in the sources of job creation, this paper presents results from a new OECD project on the dynamics of employment (DynEmp) based on an innovative methodology using firm-level data (i.e. national business registers or similar sources). It demonstrates that among small and medium sized enterprises (SMEs), young firms play a central role in creating jobs, whereas old SMEs tend to destroy jobs. This pattern holds robustly across 17 OECD countries and Brazil, extending recent evidence found in the United States. The paper also shows that young firms are always net job creators throughout the business cycle, even during the financial crisis. During the crisis, entry and post-entry growth by young firms were affected most heavily, although downsizing by old firms was responsible for most job losses. The results also highlight large cross-country differences in the growth potential of young firms, pointing to the role played by national policies in enabling successful firms to create jobs. Creation-Date: 2014-05-21 Number: 14 Handle: RePEc:oec:stiaac:14-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karen E. Wilson Author-Workplace-Name: OECD Title: New Investment Approaches for Addressing Social and Economic Challenges Abstract: This paper aims to provide an introduction to and overview of the social investment market for policy makers in OECD and non-OECD countries. Social investment is the provision of finance to organisations with the explicit expectation of a social, as well as financial, return. Social investment has become increasingly relevant in today’s economic environment as social challenges have mounted while public funds in many countries are under pressure. New investment approaches are needed for addressing social and economic challenges, including new models of public and private partnership which can fund, deliver and scale innovative solutions from the ground up. Creation-Date: 2014-07-01 Number: 15 Handle: RePEc:oec:stiaac:15-EN Template-type: ReDIF-Paper 1.0 Author-Name: Ken Warwick Author-Workplace-Name: Warwick Economics Author-Name: Alistair Nolan Author-Workplace-Name: OECD Title: Evaluation of Industrial Policy: Methodological Issues and Policy Lessons Abstract: Industrial policy, broadly defined, covers a multitude of policy instruments and approaches. While there has been a recent revival of interest in industrial policy around the world, systematic evidence of efficacy is relatively scarce. This report brings together the work of an OECD expert group that has considered recent evidence from the evaluation of industrial policy. The report focuses on three specific policy areas, namely: support for R&D; capital market interventions (with a focus on risk capital); and public procurement for innovation. The report also examines three areas where packages of industrial policy measures are generally applied: sector approaches including public-private partnerships; policies towards clusters and business networks; and national industrial strategies. In many areas of industrial policy, evaluation faces particular methodological challenges. These challenges are outlined in the report, which concludes by drawing together the main policy lessons from the available evaluation evidence. Creation-Date: 2014-07-03 Number: 16 Handle: RePEc:oec:stiaac:16-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Biobased Chemicals and Bioplastics: Finding the Right Policy Balance Abstract: As OECD countries emerge from the global financial crisis, several countries have published their plans for the development of a future bioeconomy, an economy in which bio-based materials and production techniques will contribute significantly to economic and environmental sustainability. Such plans typically involve building a bio-based production industry in which fuels, energy and materials such as chemicals and plastics, almost always generated from fossil resources such as oil and natural gas, are incrementally replaced by equivalent or novel products generated from renewable resources. The realisation of this vision will require sustainably harnessing the vast biomass resource. The highest policy priorities at present are on several levels: allowing bio-based materials to compete for biomass on price with bioelectricity and biofuels; rectifying the highly distorting fossil fuel subsidies, heading off future competition for crude oil demand; and correcting for any excessive regulatory impacts. If governments wish to realise a successful bioeconomy in the future, the case for support for bio-based chemicals and plastics warrants serious attention. Creation-Date: 2014-09-29 Number: 17 Handle: RePEc:oec:stiaac:17-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Excess Capacity in the Global Steel Industry and the Implications of New Investment Projects Abstract: This paper examines the extent, reasons and impacts of excess capacity in the global steel industry, as well as the implications of new investment projects that continue to take place at a rapid pace in many parts of the world. By focussing on new investments projects taking place in the global steel industry, this study intends to help governments and industry better understand the extent to which global steelmaking excess capacity may evolve in the future. The paper finds that global steelmaking capacity will continue to expand, with regions that are currently net importers of steel products expected to record the largest capacity increases. Global nominal steelmaking capacity is projected to increase to 2.36 billion tonnes by 2017, up from 2.16 billion tonnes in 2013. Non-OECD economies will continue to lead the capacity expansion in the global steel industry, with their share of world capacity expected to increase to 71.4% by 2017. Of particular importance for governments in this context will be to work towards removing market distorting policies such as subsidies that promote the emergence of new capacity or delay the closure of failing companies. Creation-Date: 2015-02-20 Number: 18 Handle: RePEc:oec:stiaac:18-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen De Backer Author-Workplace-Name: OECD Author-Name: Isabelle Desnoyers-James Author-Workplace-Name: OECD Author-Name: Laurent Moussiegt Author-Workplace-Name: OECD Title: 'Manufacturing or Services - That is (not) the Question': The Role of Manufacturing and Services in OECD Economies Abstract: Manufacturing features again high on the policy agenda in a lot of OECD countries. While deindustrialisation and offshoring have dominated the news about manufacturing during the past decades, recent years have witnessed a number of examples of companies re-shoring activities back to OECD economies. It is then not surprising that the discussion about the need for industrial policies in favour of manufacturing has gained importance in recent years. Policy discussions however often ignore the profound changes manufacturing has undergone in recent years, for example manufacturing today is much more than the pure production of tangible things and includes a growing services content. This paper addresses this issue against the background of long-term structural change of OECD economies and discusses the changing role of manufacturing and services in OECD economies. Creation-Date: 2015-02-23 Number: 19 Handle: RePEc:oec:stiaac:19-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Public-private Partnerships in Biomedical Research and Health Innovation for Alzheimer's Disease and other Dementias Abstract: The Organisation for Economic Co-operation and Development (OECD), through its Working Party on Biotechnology, undertook a project on “Healthy Ageing and Biomedical Innovation for Dementia and Alzheimer’s disease”. The project was conducted under Output Result 2.1 of the WPB Programme of Work and Budget 2013-14 and aimed to identify good practices to strengthen effective co-operation at a global level for the governance of biomedical technologies and health innovation in Alzheimer’s disease and other dementias. This report is in line with recommendations of the G8 Summit Declaration to strengthen collaboration for innovation and cross-sector partnerships focused on social impact investment, new care and prevention models, and academia/ industry partnerships. It had been informed by a literature review and information on public-private partnership case studies provided by members of the Working Party on Biotechnology. Creation-Date: 2015-04-09 Number: 20 Handle: RePEc:oec:stiaac:20-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Scientific Advice for Policy Making: The Role and Responsibility of Expert Bodies and Individual Scientists Abstract: The scientific community is increasingly being called upon to provide evidence and advice to government policy-makers across a range of issues, from short-term public health emergencies through to longer-term challenges, such as population ageing or climate change. Such advice can be a valuable, or even essential, input to sound policy-making but its impact depends on how it is formulated and communicated as well as how it is perceived by its target policy audience and by other interested parties. It is rare that scientific evidence is the only consideration in a policy decision and, particularly for complex issues; many interests may have to be balanced in situations where the science itself may be uncertain. The rapid evolution of information and communication technologies and moves towards more participative democratic decision-making have put additional pressure on science to help provide answers and solutions, whilst also opening up the academic enterprise to closer surveillance and criticism. What used to be ‘private’ debates between different scientific viewpoints over areas of uncertainty have now become public disputes that can be exploited by different stakeholders to confirm or deny entrenched positions. Science is truly at the centre of many important policy issues and scientists are increasingly visible and, in many cases, increasingly vulnerable, in policy-making processes. Creation-Date: 2015-04-20 Number: 21 Handle: RePEc:oec:stiaac:21-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Enhancing Translational Research and Clinical Development for Alzheimer's Disease and other Dementias Abstract: Accelerating innovation for Alzheimer’s disease and other dementias is a key challenge. Over the past few years, the OECD has conducted work in a number of areas related to innovation in biomedical research and health innovation for healthy ageing. The workshop aimed to provide an international forum for all stakeholders to drive forward a change in the global paradigm in biomedical research and health innovation for Alzheimer’s disease and other dementias. Discussions at the workshop have shown that progress on key issues is being made, thanks to a willingness of stakeholders to join forces and work together towards a future cure. In line with recommendations of the G8 Dementia Summit Declaration to strengthen collaboration for innovation and cross-sector partnerships this report considers the challenges and options to promote and accelerate research in dementia and its transformation into innovative therapies and diagnostics. Creation-Date: 2015-04-22 Number: 22 Handle: RePEc:oec:stiaac:22-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Triple and Quadruple Play Bundles of Communication Services Abstract: This report examines the provision of multiple communication services over broadband access networks, a phenomenon known as “bundling”. It highlights that care should be taken to ensure that such offers do not unreasonably constrain competition or bind consumers to a single provider in a manner that decreases welfare. The provision of bundled communication services can increase competition if it brings more choices, higher quality, or lower prices to consumers from the facilities-based networks providing bundled offers. On the other hand, it may also lead to increased consolidation between fixed and mobile network providers and result in less competition in wholesale and retail markets. Creation-Date: 2015-06-18 Number: 23 Handle: RePEc:oec:stiaac:23-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karen E. Wilson Author-Workplace-Name: OECD Title: Policy Lessons from Financing Innovative Firms Abstract: There has been increasing global concern from policy makers over the lack of access to finance for young innovative firms. As a result, governments in many OECD countries have sought to address the financing gap and perceived market failures by supporting the seed and early stage market. This paper seeks to summarise the lessons learned in seed and early stage finance based on OECD work focused on policies related to financing high growth firms, including angel investment and venture capital. Growth in seed and early stage finance policies highlights the role that financial development and other policies play in firm dynamics and job creation. Creation-Date: 2015-06-24 Number: 24 Handle: RePEc:oec:stiaac:24-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Making Open Science a Reality Abstract: Open science commonly refers to efforts to make the output of publicly funded research more widely accessible in digital format to the scientific community, the business sector, or society more generally. Open science is the encounter between the age-old tradition of openness in science and the tools of information and communications technologies (ICTs) that have reshaped the scientific enterprise and require a critical look from policy makers seeking to promote long-term research as well as innovation. Creation-Date: 2015-10-15 Number: 25 Handle: RePEc:oec:stiaac:25-EN Template-type: ReDIF-Paper 1.0 Author-Name: Bengt G. Mölleryd Title: Development of High-speed Networks and the Role of Municipal Networks Abstract: All OECD countries recognise the benefits that stem from high speed broadband networks and have made tremendous progress in recent years in fostering their deployment. Nonetheless, many challenges remain in terms of how to enhance and expand these networks to meet the growing demands of an increasingly digital economy and society. Although private investments have been the overwhelming source of finance for high speed networks in OECD countries, municipal networks have been used in a number of OECD countries to fill gaps or provide substantial areas of service in a region, city or smaller town and surrounding locations. This report examines some of the experience with these municipal broadband networks in selected OECD countries. Municipal networks are defined here as high speed networks that have been fully or partially facilitated, built, operated or financed by local governments, public bodies, utilities, organisations, or co-operatives that have some type of public involvement. The models and experience of these networks have varied from being highly successful to not meeting expectations. In some cases, they have provided welcome competition by offering an alternative infrastructure and have opened the market for retail Internet service providers by separating the basic infrastructure from services. In other cases, they have enabled the use of shared infrastructure. Some have built on a long tradition of municipalities providing services from entities owned by them, such as the provision of utility services like energy, water, gas, or cable television. Some have involved public private partnerships, others have been privatised following initial public ownership and some are community driven. Creation-Date: 2015-11-25 Number: 26 Handle: RePEc:oec:stiaac:26-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen De Backer Author-Name: Carlo Menon Author-Workplace-Name: OECD Author-Name: Isabelle Desnoyers-James Author-Workplace-Name: OECD Author-Name: Laurent Moussiegt Author-Workplace-Name: OECD Title: Reshoring: Myth or Reality? Abstract: The news that companies in OECD economies are increasingly bringing manufacturing activities back home has attracted a lot of attention in recent years. Headline cases of a number of large multinational companies have given increased visibility to the phenomenon of reshoring in the economic press, academic research and policy discussions.. The debate on re-shoring (often also called “backshoring”, “nearshoring”, “onshoring”) is very lively with some even arguing that the time of offshoring has come to an end. But considerable disagreement exists about how important this trend actually is for economies in particular the number of jobs that reshoring is supposed to bring back. While policy makers in OECD economies hope that reshoring might help to revitalise their slumping manufacturing industries, the rationale for policy measures around reshoring is not clear-cut. Creation-Date: 2016-01-26 Number: 27 Handle: RePEc:oec:stiaac:27-EN Template-type: ReDIF-Paper 1.0 Author-Name: James J. Corbett Author-Name: Nick Johnstone Author-Workplace-Name: OECD Author-Name: Karin Strodel Author-Workplace-Name: OECD Author-Name: Laurent Daniel Author-Workplace-Name: OECD Title: Environmental Policy and Technological Innovation in Shipbuilding Abstract: This paper examines the relationship between environmental policy and “green” innovation in shipbuilding. The primary motivating question of this work is whether there is evidence of: i) technology push from innovation that enables environmental policy initiatives; and/or, ii) policy pull that induces innovation leading to “green” ships. This paper focuses on four environmental categories of technological innovation in the shipbuilding industry, encompassing oil spill recovery, emissions control, climate change mitigation and ballast water treatment. The analysis draws upon documents filed at the International Maritime Organization (IMO) to proxy for policy measures, and uses patent data of the Worldwide Statistical Patent Database, maintained by the European Patent Office (EPO), to account for innovation. Our results show a similar trend between patent activity and IMO document submissions over the years 1998 to 2012 for the two environmental categories, climate change mitigation and emissions control. The key contribution of this work are to provide more insights into environmental policy in shipbuilding and its role in innovation activity, as well as to develop a rich dataset focused on IMO policies aimed at encouraging improved environmental performance by ships. Creation-Date: 2016-03-25 Number: 28 Handle: RePEc:oec:stiaac:28-EN Template-type: ReDIF-Paper 1.0 Author-Name: Flavio Calvino Author-Workplace-Name: OECD Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Carlo Menon Author-Workplace-Name: OECD Title: No Country for Young Firms?: Start-up Dynamics and National Policies Abstract: This paper provides new cross-country evidence on the links between national policies and the growth patterns of start-ups. In particular, it compares for the first time the heterogeneous effects of national policies on entrants and incumbents, within the same country, industry, and time period. A number of key facts emerge. First, start-ups in volatile sectors and in sectors that exhibit higher growth dispersion are significantly more exposed to national policies than start-ups in other sectors. Second, start-ups are systematically more exposed than incumbents to the policy environment and national framework conditions. Third, the results suggest that timely bankruptcy procedures and strong contract enforcement are key to establishing a dynamic start-up environment. Creation-Date: 2016-04-01 Number: 29 Handle: RePEc:oec:stiaac:29-EN Template-type: ReDIF-Paper 1.0 Author-Name: Rene Belderbos Author-Name: Leo Sleuwaegen Author-Name: Dieter Somers Author-Name: Koen De Backer Author-Workplace-Name: OECD Title: Where to Locate Innovative Activities in Global Value Chains: Does Co-location Matter? Abstract: With the emergence of global value chains (GVCs), production processes are increasingly fragmented and dispersed across different countries. Although many MNEs still exhibit an important ‘home bias’ in their global innovation activities, a growing number of firms have offshored R&D and innovative activities to foreign locations. Is the more recent offshoring of R&D and innovation linked to the prior waves of manufacturing offshoring? The fear in OECD economies is that because of co-location effects between production and innovative activities, the loss of certain manufacturing/assembly activities may result in a loss of innovative capabilities (R&D, design, etc.) in the longer-term. The offshoring of R&D and innovation within GVCs poses new challenges to economic policy in OECD and emerging economies. For example, how can countries attract inward R&D investments by foreign MNEs? Should outward R&D investments by MNEs be a concern for the countries in which the MNEs are headquartered? Creation-Date: 2016-07-12 Number: 30 Handle: RePEc:oec:stiaac:30-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Global Action to Drive Innovation in Alzheimer's Disease and Other Dementias: Connecting Research, Regulation and Access Abstract: Policymakers and the research community have an integral leadership role to foster collaborative efforts to deliver the best available science for evidence based policies and approval processes. The second Lausanne Workshop of December 2015 reviewed the policy and stakeholder actions needed to accelerate biomedical research and health innovation for Alzheimer’s disease and other dementias. The agenda featured developments in regulatory and access pathways for potential innovations in dementia. Participants discussed the perspectives of regulators and payers, specifically the evidence and tools needed to support regulatory and payer evaluation of innovations. A particular focus was placed on the large and growing societal implications of Alzheimer’s disease and the heightened urgency to define sustainable access strategies for future diagnostics and therapies. There is consensus across all stakeholders to move from global agenda setting in Alzheimer’s disease to action oriented programmes and implementation. Creation-Date: 2016-09-09 Number: 31 Handle: RePEc:oec:stiaac:31-EN Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Appelt Author-Workplace-Name: OECD Author-Name: Matej Bajgar Author-Workplace-Name: OECD Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Fernando Galindo-Rueda Author-Workplace-Name: OECD Title: R&D Tax Incentives: Evidence on design, incidence and impacts Abstract: This policy paper provides an overview of OECD work on measuring the extent and impact of public support for R&D through tax incentives. It discusses the policy rationale for tax incentives in the broader context of public support for business R&D, describing the main features of different modes of expenditure-based tax relief for R&D. It presents evidence on how much financial support is provided through tax incentives, how this has evolved in recent years and the variation in implied R&D tax subsidy rates across OECD countries and partner economies. The document also reviews empirical evidence on the impact of tax incentives, covering in detail different categories of impacts including potentially unintended effects. It further includes evidence on the use and impacts of income-based R&D tax incentives. The paper concludes with a synthesis of the main policy recommendations contained in key OECD policy documents and highlights future measurement and analytical work planned in this area. Creation-Date: 2016-09-10 Number: 32 Handle: RePEc:oec:stiaac:32-EN Template-type: ReDIF-Paper 1.0 Author-Name: Brunella Boselli Author-Workplace-Name: OECD Author-Name: Fernando Galindo-Rueda Author-Workplace-Name: OECD Title: Drivers and Implications of Scientific Open Access Publishing: Findings from a Pilot OECD International Survey of Scientific Authors Abstract: This paper presents the results of a new and experimental study on the research and publishing activities of scientific authors. It also aimed to test the feasibility of an OECD global survey on science with a focus on major emerging policy issues. This online, email-based pilot survey was based on a stratified random sample of corresponding authors of publications listed in a major global scientific publication index across seven diverse, hand-picked science domains. The results provide evidence of the extent of journal and repository-based open access, data sharing practices, the link between different forms of open access to research and research impact, and the decoupling of quality assurance and access roles played by journals. The results point to the importance of considering economic incentives and social norms in developing policy options for open access. The findings also provide new insights on scientist careers, mobility and gender pay bias. Keywords: authors, open access, open science, research, science, survey Creation-Date: 2016-09-22 Number: 33 Handle: RePEc:oec:stiaac:33-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Research Ethics and New Forms of Data for Social and Economic Research Abstract: This report sets out some basic rules that underpin an ethical approach to research using new forms of data for social and economic research. These rules and the interpretation that we place upon them give rise to a set of recommendations designed to provide a framework for the ethical governance of research using such data. There are assumptions and limitations underpinning these recommendations – they are not cost-free and will be easier to apply in countries with established research ethics procedures, particularly where research organisations and data owners have access to ethical review bodies. The sharing of expertise on, and knowledge about, research ethics between countries is critical to the creation of a common and cost-efficient ethical environment for social scientific research. Creation-Date: 2016-11-08 Number: 34 Handle: RePEc:oec:stiaac:34-EN Template-type: ReDIF-Paper 1.0 Author-Name: Matej Bajgar Author-Name: Chiara Criscuolo Title: OECD Evaluation Framework for Modern Apprenticeships in Scotland Abstract: This evaluation framework sets out recommendations for evaluating Modern Apprenticeships in Scotland. It discusses the evaluation activities to carry out, the outcomes to examine, the data to use and the methods to apply. It also sets the recommendations in a broader context by introducing activities and guiding principles related to evaluating public interventions and by briefly summarising relevant literature.The report describes a long-term evaluation strategy to be followed once required links between administrative datasets are put in place, and it also outlines the steps that should be made already in the short and medium term to facilitate the data linkage and to exploit data that are more readily available. The report emphasises the crucial role of formulating an ex-ante evaluation strategy in enabling high-quality and cost-effective evaluation. Creation-Date: 2016-12-22 Number: 35 Handle: RePEc:oec:stiaac:35-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Use of Behavioural Insights in Consumer Policy Abstract: Over the past decade, behavioural insights have helped make consumer policies more evidence-based and effective. This report examines how behavioural insights have been used by governments and other public policy organisations to develop and implement consumer policy initiatives, primarily through the use of experiments and surveys. Behavioural insights have informed enforcement actions, new regulations, consumer empowerment initiatives and consumer education. Behavioural insights provide grounds and justification on why governments need to take actions and, helping identify how the impact of behavioural biases on consumer choice can be mitigated, for example through effective labelling and information disclosures. The report also identifies challenges to applying behavioural insights to consumer policy, relating to the conduct and interpretation of behavioural experiments as well as organisational and stakeholder issues. Creation-Date: 2017-01-20 Number: 36 Handle: RePEc:oec:stiaac:36-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The links between global value chains and global innovation networks: An exploration Abstract: Economic globalisation has given rise to two types of networks that stretch out across OECD and emerging economies. At the one side, global value chains (GVCs) can be thought of as the “material” transfers of goods and services (final as well as intermediate) across borders. At the other side, Global Innovation Networks (GINs) refer to the transfers of intangibles and immaterial assets between countries. Concerns are increasingly raised in policy discussions that countries are not able to capture the value of their innovative activities, hence the clear need to better understand the interdependencies between these two types of networks. Creation-Date: 2017-04-10 Number: 37 Handle: RePEc:oec:stiaac:37-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Making policy evaluation work: The case of regional development policy Abstract: The paper presents a critical discussion of ex-post impact evaluation of policies that affect regional economic development, with a particular emphasis on drawing useful implications for policy making. In particular, it discusses the importance of setting clear and measurable objectives in designing policies and the need for equally clear policy levers; it highlights the main advantages of “counterfactual” evaluation; it analyses the methodological specificities of the evaluation of programmes that have a regional or urban dimension; and it provides a survey of some of the most relevant examples in the empirical economics literature. The ultimate goal is to “bridge” the perceived distance between policy discussions on the one side, and academic debates on the other. Some specific recommendations conclude the report. Creation-Date: 2017-04-21 Number: 38 Handle: RePEc:oec:stiaac:38-EN Template-type: ReDIF-Paper 1.0 Author-Name: Giuseppe Berlingieri Author-Name: Patrick Blanchenay Author-Name: Chiara Criscuolo Title: The great divergence(s) Abstract: This report provides new evidence on the increasing dispersion in wages and productivity using novel micro-aggregated firm-level data from 16 countries. First, the report documents an increase in wage and productivity dispersions, for both manufacturing and market services. Second, it shows that these trends are driven by differences within rather than across sectors, and that the increase in dispersion is mainly driven by the bottom of the distribution, while divergence at the top occurs only in the service sector, and only after 2005. Third, it suggests that between-firm wage dispersion is linked to increasing differences between high and low productivity firms. Fourth, it suggests that both globalisation and digitalisation imply higher wage divergence, but strengthen the link between productivity and wage dispersion. Finally, it investigates the impact of minimum wage, employment protection legislation, trade union density, and coordination in wage setting on wage dispersion and its link to productivity dispersion. Creation-Date: 2017-05-12 Number: 39 Handle: RePEc:oec:stiaac:39-EN Template-type: ReDIF-Paper 1.0 Author-Name: Timothy DeStefano Author-Name: Koen De Backer Author-Name: Laurent Moussiegt Title: Determinants of digital technology use by companies Abstract: Advances in digital technologies are transforming the way firms function, how they are structured and the manner in which they compete. This paper contributes to our understanding of digital technology usage by assessing changing patterns in the use of hardware and software and identifying the extent to which various plant characteristics and policy environments correlate with ICT investment. The results suggest notable changes in the use of a number of digital technologies across countries between 2000 and 2012. A range of establishment-level determinants appear to be important for hardware and software investment including size, being in a knowledge intensive sector and if the establishment is the headquarters. The effects of policy measures however are markedly different across various ICTs. Heterogeneity in the effects of policy indicators on a number of ICTs suggest a reconsideration is needed regarding the relevance of traditional aggregate policy measures for digital technology use. Creation-Date: 2017-06-07 Number: 40 Handle: RePEc:oec:stiaac:40-EN Template-type: ReDIF-Paper 1.0 Author-Name: Koen De Backer Author-Workplace-Name: OECD Author-Name: Dorothee Flaig Author-Workplace-Name: OECD Title: The future of global value chains: Business as usual or “a new normal”? Abstract: The rapid growth of global value chains (GVCs) has been an important driver of globalisation during the past decades. But the international fragmentation of production appears to have lost momentum and GVCs seem to have stalled in recent years. The world economy is facing a number of structural shifts that may dramatically change the outlook of GVCs in the coming years. The empirical evidence evaluating the potential impact of these shifts however largely lags behind, which makes these discussions somewhat speculative. By describing how these shifts will likely evolve over the next 10 to 15 years and calculating their effects on global production and trade, the scenarios in this paper offers new - empirically funded - insights on the future of GVCs. Creation-Date: 2017-07-11 Number: 41 Handle: RePEc:oec:stiaac:41-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The Microbiome, diet and health: Towards a science and innovation agenda Abstract: There is now strong evidence that microbiomes play an important role in human health, as there are clear linkages to many of the major non-communicable diseases. This report assesses the key policy challenges for innovation in the microbiome. Evidence is accumulating that through diet, the gut microbiome can be altered to generate greater well-being, to offer better protection against non-communicable diseases, and even to cure such conditions. The report argues that if such a promising scientific field is to lead to innovative applications, policies on science and innovation must be improved in five areas: 1) science policy; 2) enabling translational science; 3) public-private collaboration; 4) regulatory frameworks; and 5) skills, communication and the public. Creation-Date: 2017-09-22 Number: 42 Handle: RePEc:oec:stiaac:42-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Marine biotechnology: Definitions, infrastructures and directions for innovation Abstract: Several countries have been setting up strategic roadmaps to support marine biotechnologies that could drive innovation and help address the global sustainability goals of food, energy, and health. The report identifies and begins to address challenges facing cooperation on marine biotechnology across countries. First, the report provides on an international definition of marine biotechnology that was developed through a multi-year process. Second, the report reviews the international infrastructure in marine biotechnology and identifies the lack of standardisation as a critical issue. Creation-Date: 2017-09-26 Number: 43 Handle: RePEc:oec:stiaac:43-EN Template-type: ReDIF-Paper 1.0 Author-Name: Luca Marcolin Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: Investing in innovation and skills: Thriving in global value chains Abstract: This paper synthesises the main policy implications of OECD work focusing on the interplay between participation and positioning in global value chains (GVCs), employment demand and supply and workforce’s skills endowment. They relate to: the way innovation, technology and participation in GVCs shape employment in routine intensive and non-routine jobs; the relationship between participation in GVCs and polarisation of employment; the way the skill composition of a country’s workforce – both the type of skills and their distribution – shapes specialisation and positioning along GVCs; and the complementarities emerging between GVC participation and investment in knowledge-based capital, especially organisational capital and ICT. Creation-Date: 2017-10-19 Number: 44 Handle: RePEc:oec:stiaac:44-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Sandra Planes-Satorra Author-Workplace-Name: OECD Author-Name: Tadanori Moriguchi Author-Workplace-Name: Japan Patent Office Title: What role for social sciences in innovation?: Re-assessing how scientific disciplines contribute to different industries Abstract: Knowledge transfer between industry and science is fundamental to innovation. There are important differences across scientific disciplines and sectors of activity in that, for instance, the financial and pharmaceutical sectors have different demands for science inputs. This paper reviews the data sources and associated methodologies available to measure different types of science-industry interaction. It applies these insights to re-assess the contributions of social sciences to industry and the disciplinary needs of the ICT sector. The paper finds that commonly used methodologies fail to shed light on a number of important industry-science interaction channels, and introduce biases in assessing connections. Using new evidence from labour force and university graduate surveys can help to some extent. The paper shows how these additional data allow to better capture the contributions of social scientists and the complexity of disciplinary demands of the digital economy. However, new data sources and methods should be further explored. Classification-JEL: I23; O31; O33 Keywords: academic disciplines, industry sectors, information and communication technologies (ICT), innovation, knowledge transfer, review of data sources and associated methodologies, Science-industry linkages, social sciences Creation-Date: 2017-11-17 Number: 45 Handle: RePEc:oec:stiaac:45-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Neurotechnology and society: Strengthening responsible innovation in brain science Abstract: Large-scale research and development programmes in neuroscience are giving rise to a host of new approaches, techniques and capacities to understand, read and intervene in the human brain. Some of these technologies reframe how we understand mental health and cognition, while others promise new applications for treating disease and even enhancing human capabilities. These developments in neuroscience and associated technologies have many ethical, legal and social implications including issues of product safety, human enhancement, dual use, privacy, and human identity. There is broad agreement among stakeholders that social aspects of brain research must be examined alongside the scientific and technical ones. In fact, good ideas for achieving such integration have emerged within the field of governance of emerging technology and within the national brain initiatives themselves. This report identifies, and seeks to address, key challenges for realising the responsible development of neurotechnology. In particular, the report analyses frameworks and mechanisms for integrating social concerns in the early development of technology, and discusses best practices for research funders across the public and private sector. Creation-Date: 2017-11-30 Number: 46 Handle: RePEc:oec:stiaac:46-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Business models for sustainable research data repositories Abstract: There is a large variety of repositories that are responsible for providing long term access to data that is used for research. As data volumes and the demands for more open access to this data increase, these repositories are coming under increasing financial pressures that can undermine their long-term sustainability. This report explores the income streams, costs, value propositions, and business models for 48 research data repositories. It includes a set of recommendations designed to provide a framework for developing sustainable business models and to assist policy makers and funders in supporting repositories with a balance of policy regulation and incentives. Keywords: Business models, Data, Open data, Open science, Repositories, Research, Sustainability Creation-Date: 2017-12-06 Number: 47 Handle: RePEc:oec:stiaac:47-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Strengthening the effectiveness and sustainability of international research infrastructures Abstract: Research infrastructures are long-term enterprises. They are increasingly diverse in nature, may operate under very different models of governance and financing, and within diverse and evolving financial and political contexts. They represent strategic investments which are indispensable for enabling and developing research in all scientific domains and also often have broader socio-economic impacts. This report identifies the challenges faced by research infrastructure funders, managers and operators all along the various phases of the research infrastructures life-cycle, presents practical solutions that have been found to be applicable in certain cases, and proposes a series of policy recommendations which could be implemented to increase their effectiveness and sustainability. Keywords: effectiveness, research infrastructures, sustainability Creation-Date: 2017-12-08 Number: 48 Handle: RePEc:oec:stiaac:48-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Digital platforms for facilitating access to research infrastructures Abstract: Shared research infrastructures are playing an increasingly important role in most scientific fields and represent a significant proportion of the total public investment in science. Many of these infrastructures have the potential to be used outside of their traditional scientific domain and outside of the academic community but this potential if often not fully realised. A major challenge for potential users (and for policy-makers) is simply identifying what infrastructures are available under what conditions. This report includes an analysis of 8 case studies of digital platforms that collate information and provide services to promote broader access to, and more effective use of, research infrastructures. Although there is considerable variety amongst the cases, a number of key issues are identified that can help guide policy-makers, funders, institutions and managers, who are interested in developing or contributing to such platforms. Creation-Date: 2017-12-08 Number: 49 Handle: RePEc:oec:stiaac:49-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Open research agenda setting Abstract: Citizen engagement is being promoted in many countries as a mechanism to improve the efficiency, quality and relevance of research and improve transparency and trust in science. At the same time, digitalisation is opening up new opportunities for consultation and exchange with citizens. This report includes an analysis of 7 different initiatives to engage citizens in the co-design of research agendas . These cases varied considerably in their scientific focus, geographic scale and overall aims and methodology. Nevertheless a number of consistent messages came through in relation to: 1. the rational for engaging citizens in setting research agendas; 2. how to do so effectively; 3. the resource implications and potential impact. The report includes 10 key observations or lessons learned to help guide policy-makers, research funders and researchers who are interested in citizen engagement in science. Keywords: citizen engagement, co-design, digital tools, research agenda, science policy Creation-Date: 2017-12-08 Number: 50 Handle: RePEc:oec:stiaac:50-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Co-ordination and support of international research data networks Abstract: International research data networks are critical for progress in many scientific domains and underpin efforts to promote Open Science. At the same time, many of these networks are fragile and the responsibilities for their support and performance are frequently distributed across a variety of different actors. This report explores the challenges and enablers for the effective functioning of international research data networks. It analyses the diversity and complexity of these networks, and issues such as governance and funding, in a selection of 32 cases. It includes a set of policy recommendations as a basis for building the shared understanding that is necessary to develop effective and sustainable international research data networks. Keywords: Co-ordination, Data, International, Interoperability, Networks, Open data, Open Science, Research Creation-Date: 2017-12-08 Number: 51 Handle: RePEc:oec:stiaac:51-EN Template-type: ReDIF-Paper 1.0 Author-Name: Nagui Bechichi Author-Workplace-Name: OECD Author-Name: Robert Grundke Author-Workplace-Name: OECD Author-Name: Stéphanie Jamet Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: Moving between jobs: An analysis of occupation distances and skill needs Abstract: This paper aims to inform policies facilitating job-to-job transitions triggered by changes in the task content of occupations and in job demand. It assesses the distances existing between occupations in terms of cognitive skills and of skills as they emerge from the tasks performed on the job, and the training needs that moving between occupations entails. Skill “shortages” and “excesses” calculated on data for 31 countries and aggregated over 127 occupations are used to estimate the training efforts required to meet the skills requirements of the destination job. Distances in cognitive skills are found to be higher among low-skilled or from mid- to high-skilled occupations than among higher-skilled occupations. Conversely, distances in task-related skills are higher within high-skilled than low-skilled occupations. These results call for policies aimed at developing general cognitive skills complemented by task-related skills for workers in low-skilled occupations, and on-the-job training options for workers in high-skilled occupations. Creation-Date: 2018-06-21 Number: 52 Handle: RePEc:oec:stiaac:52-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gianpiero Mattera Author-Name: Filipe Silva Title: State enterprises in the steel sector Abstract: This report assesses the extent and implications of the presence of state enterprises in the steel industry. There are concerns about the potential lack of transparency and accountability as well as competitive advantages that state enterprises may have over competitors. In 2016, 22 of the world’s 100 largest steelmaking companies were state enterprises, representing at least 32% of global crude steel output in 2016. Firm-level data suggest that state enterprises in the steel sector are likely to be associated with weaker economic performance and higher levels of indebtedness, compared to private enterprises. The analysis in this paper shows that this is particularly relevant for state enterprises located in non-OECD economies. Data on steelmaking capacity investments show that state enterprises have contributed significantly to the increase in global steelmaking capacity, although financial data show that state enterprises obtain lower profits for each unit of fixed costs than comparable private counterparts. Creation-Date: 2018-09-09 Number: 53 Handle: RePEc:oec:stiaac:53-EN Template-type: ReDIF-Paper 1.0 Author-Name: Carlo Menon Author-Name: Timothy DeStefano Author-Name: Francesco Manaresi Author-Name: Giovanni Soggia Author-Name: Pietro Santoleri Title: The evaluation of the Italian “Start-up Act” Abstract: The report provides an independent and comprehensive evaluation of the economic and social impact of the Italian policy framework for innovative start-ups, also known as the “Start-up Act”, first introduced by the Decree-law 179 in 2012. The policy aims at creating a more favourable environment for small innovative start-ups through a number of complementary instruments, including “fast-track” and zero cost incorporation, simplified insolvency procedures, tax incentives for equity investments, and a public guarantee scheme for bank credit. While the report focuses only on Italy, the “Start-up Act” can be seen as a very useful “laboratory” to inform policies for innovative entrepreneurship across OECD member countries. The evaluation highlights that the impact of the policy on beneficiary firms has been positive overall, but that complementary policy actions in other areas are required in order to further realise the full potential of Italian innovative start-ups. Creation-Date: 2018-09-26 Number: 54 Handle: RePEc:oec:stiaac:54-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin Borowiecki Author-Name: Caroline Paunov Title: How is research policy across the OECD organised?: Insights from a new policy database Abstract: Building on a newly created policy indicator database, this paper provides a first systematic comparison of the governance of public research policy across 35 OECD countries from 2005 to 2017. The database was obtained following a three-year process that involved the development of an ontology of the governance of public research policy as well as data collection and validation by national authorities. The data show diverse institutions and mechanisms of policy action regarding higher education institutions (HEIs) and public research institutes (PRIs) are in place across the 35 OECD countries. The data also shows an increasing use of project funding, performance contracts and performance evaluations for HEIs and PRIs. In many countries, HEIs and PRIs are autonomous regarding their relations with industry, budget allocation but less frequently regarding salaries. Recent reforms have strengthened external stakeholders' participation in their governance. The database is publicly available on the following webpage: https://stip.oecd.org/resgov. Classification-JEL: H11; I23; I28; O38 Keywords: cross-country policy indicators, governance of research policy, higher education institutions (HEIs) and public research institutes (PRIs), Innovation and research policy, OECD countries Creation-Date: 2018-10-05 Number: 55 Handle: RePEc:oec:stiaac:55-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Measuring and maximising the impact of product recalls globally: OECD workshop report Abstract: This report provides a summary of discussions at the OECD Workshop on Measuring and Maximising the Impact of Product Recalls Globally organised by the OECD Working Party on Consumer Product Safety on 16 April 2018, as part of its 16th meeting. The report points to the initiatives implemented by government, businesses, and civil society to measure and enhance product recall effectiveness. It also explores ways to increase consumer reactions to recall notices, based on insights from behavioural economics. Creation-Date: 2018-10-12 Number: 56 Handle: RePEc:oec:stiaac:56-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Effective operation of competitive research funding systems Abstract: This report analyses existing competitive research funding mechanisms and their effectiveness, taking into account a variety of contextual factors. It focuses on the efficiency of funding allocation mechanisms relative to their objectives. The main elements of this project have been an extensive survey of individual funding schemes in different countries, complemented with targeted interviews. Findings from the survey and interviews, completed with contextual data on national research funding trends, were analysed to identify major challenges for competitive funding processes and to propose options to overcome them.This report is aimed both at the research funding community and policy-makers wishing to adapt competitive research funding strategies to different objectives. It includes a number of policy recommendations, which engage different actors and are derived from the analysis including identification of gaps in the available data and information. Creation-Date: 2018-10-16 Number: 57 Handle: RePEc:oec:stiaac:57-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Enhancing product recall effectiveness globally: OECD background report Abstract: This report aims to explore the challenges faced by product safety authorities, businesses, and other stakeholders in measuring and maximising the impact of product recalls globally. It collates and synthesises recall trends involving non-food products, examines and compares government and other stakeholders’ understanding of recall effectiveness, and reviews tools and co-operation initiatives in place at domestic, regional and global levels. The report also identifies elements that may be considered by governments and businesses to shape more effective communication strategies and increase consumer awareness of recall response rates. Creation-Date: 2018-11-13 Number: 58 Handle: RePEc:oec:stiaac:58-EN Template-type: ReDIF-Paper 1.0 Author-Name: Dominique Guellec Author-Workplace-Name: OECD Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Innovation policies in the digital age Abstract: This paper looks at how digitalisation is transforming innovation, and the consequent need for innovation policies to adapt. The paper shows that the digital transformation affects the economics of information and knowledge, in particular pricing and allocation. The reduced costs of producing and handling information and knowledge and the increased fluidity change innovation dynamics. Data have become a core input for innovation. Other changes include more opportunities for versioning; an acceleration in innovation, more experimentation and collaboration; servitisation; and higher risk associated with these general purpose technologies. The digital transformation also has economy-wide effects in terms of business dynamics, market structures and distribution. In view of this transformation, changes to innovation policy are required in the digital age. Innovation policies need to address data access issues; become more agile; promote open science, data sharing and co-operation among innovators; and review competition for innovation and intellectual property policy frameworks. Classification-JEL: L20; O31; O33 Keywords: acceleration of innovation, digital innovation, digital technologies, economics of knowledge and information, innovation policy, market structures, servitisation Creation-Date: 2018-11-13 Number: 59 Handle: RePEc:oec:stiaac:59-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jim Philp Author-Name: David E. Winickoff Title: Realising the circular bioeconomy Abstract: First the bioeconomy and then circular economy have gained political traction during the second decade of this century. There are synergies to be exploited, but also potential misalignments. The movement of bioeconomy toward the use of wastes, co-products and residue sources resonates well with circular economy principles of making the most efficient of uses of natural resources, as does as transition in focus from virgin to secondary materials in production. However, poorly aligned waste characterisation as well as biomass competition reflect both theoretical and practical conflicts between industrial and environmental policy. Further, waste markets can be disrupted as some materials that currently go to recycling, landfill or incineration could in the future be bound for biorefineries, with implications for waste management markest and public infrastructure. Policies promoting the cascading use of biomass could help mitigate these tensions by achieving high resource productivity. Creation-Date: 2018-11-27 Number: 60 Handle: RePEc:oec:stiaac:60-EN Template-type: ReDIF-Paper 1.0 Author-Name: Elodie Andrieu Author-Workplace-Name: OECD Author-Name: Stéphanie Jamet Author-Workplace-Name: OECD Author-Name: Luca Marcolin Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: Occupational transitions: The cost of moving to a “safe haven” Abstract: This study proposes experimental estimates of the monetary cost of the training needed to move workers across occupations. Occupations of destination are held “acceptable” if they are close, in terms of skills requirements, and entail small wage cuts and skills excesses (if any) relative to the occupation of origin. The total estimated cost encompasses the direct cost of undertaking the training, and workers’ opportunity cost, in terms of foregone wages. The minimum cost of moving workers in occupations at high risk of automation (ROA) to occupations where they are not at such risk (so called “safe haven”) is estimated to range between 1-5% of one year GDP, on average across the countries considered. At the worker level, occupational transitions’ costs increase with the cognitive skills and the average age of the workers in the occupation of origin, and with the proportion of workers at high ROA in manufacturing. Creation-Date: 2019-02-27 Number: 61 Handle: RePEc:oec:stiaac:61-EN Template-type: ReDIF-Paper 1.0 Author-Name: Flavio Calvino Author-Workplace-Name: OECD Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Title: Business dynamics and digitalisation Abstract: This work analyses the role of the digital transformation for business dynamics across countries. The analysis combines unique harmonised data on business dynamics for 15 countries with a multi-dimensional measure of digital intensity that takes into account different facets of the digital transformation. Two key stylised facts emerge. First, digital intensive sectors – especially digital intensive services – are on average more dynamic than other sectors of the economy. Second, business dynamism has been declining in digital intensive sectors, and more so than in other sectors, especially after 2001. Despite an important role is played by technology, significant differences across countries still remain and are related to a number of institutional and policy factors. Keywords: business dynamics, digital transformation, entrepreneurship Creation-Date: 2019-03-01 Number: 62 Handle: RePEc:oec:stiaac:62-EN Template-type: ReDIF-Paper 1.0 Author-Name: Charles Cadestin Author-Name: Koen De Backer Author-Name: Sébastien Miroudot Author-Name: Laurent Moussiegt Author-Name: Davide Rigo Author-Name: Ming Ye Title: Multinational enterprises in domestic value chains Abstract: Multinational Enterprises (MNEs) play an important role in host countries’ domestic value chains as part of the global activities of these companies in GVCs. MNE affiliates create directly large volumes of output, value added, international trade and jobs, and in addition they generate also important indirect effects. Foreign affiliates in host countries are not only sourcing locally produced inputs, tradeable as well as non-tradeable, but also produce final and intermediate products sold and used within the domestic economy. Based on the OECD Analytical AMNE database, this paper analyses the domestic linkages of MNE affiliates in host economies in order to get better insights in the role MNEs play across countries. Creation-Date: 2019-03-12 Number: 63 Handle: RePEc:oec:stiaac:63-EN Template-type: ReDIF-Paper 1.0 Author-Name: Stefano Breschi Author-Workplace-Name: Bocconi University Author-Name: Julie Lassébie Author-Workplace-Name: OECD Author-Name: Alexander C. Lembcke Author-Workplace-Name: OECD Author-Name: Carlo Menon Author-Workplace-Name: Laterite Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Public research and innovative entrepreneurship: Preliminary cross-country evidence from micro data Abstract: This paper provides a first assessment of the degree to which public research contributes to innovative entrepreneurship, using data on start-ups and venture capital (VC). It looks at academic start-ups founded by recent undergraduates and doctorate students or researchers. It shows that academic start-ups represent 15% of all start-ups in the specific sample under scrutiny. Their share is higher in science-based technological fields such as biotechnology (23%). Across the majority of countries and technology fields, start-ups created by undergraduate students represent the highest share of all academic start-ups. As to their performance, start-ups founded by researchers are more likely to patent and those founded by students introduce innovations that are more radical compared to other start-ups. While start-ups founded by undergraduate students receive less VC funding and are less likely to exit via IPO or acquisition, those created by researchers are as successful as their non-academic counterparts. Classification-JEL: L26; O30 Keywords: academic entrepreneurship, innovative entrepreneurship, knowledge transfer, public research, student entrepreneurship Creation-Date: 2019-03-28 Number: 64 Handle: RePEc:oec:stiaac:64-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Reference framework for assessing the scientific and socio-economic impact of research infrastructures Abstract: Research Infrastructures (RIs) are indispensable for enabling and developing research in almost all scientific domains and represent an increasingly large share of research investment. As policy makers, funding agencies and RI management are increasingly expected to justify key decisions about implementing new projects or investing in existing ones, there is a demand for credible methodologies for assessing the overall impact of RIs.This report proposes a “Framework for assessing the scientific and socio-economic impact of research infrastructures”. It aims to provide funders, decision-makers and RI managers with a generic and versatile tool, based on current community practices, to evaluate the achievement of scientific and socio-economic objectives in a realistic way. The framework can be adapted for different types of RIs and different stages in the RI lifecycle. This tool should facilitate the communication and reporting between different RI stakeholders. Keywords: impact assessment, research infrastructures, scientific impact, socio-economic impact Creation-Date: 2019-03-28 Number: 65 Handle: RePEc:oec:stiaac:65-EN Template-type: ReDIF-Paper 1.0 Author-Name: José Guimón Author-Workplace-Name: Universidad Autónoma de Madrid Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Science-industry knowledge exchange: A mapping of policy instruments and their interactions Abstract: Countries deploy a variety of financial, regulatory and soft policy instruments to promote science-industry knowledge exchange. While these instruments are often discussed in isolation, they are implemented collectively and may reinforce and complement but also weaken or even negatively affect each other and add excessive complexity. This paper develops a conceptual framework to map policy instruments for knowledge exchange and assess the interactions between them. The framework also considers how national contexts and global trends influence the choice of policy instruments. Policy examples drawn from the EC-OECD STIP Compass database and from case studies show that there are significant differences across countries in the relative importance given to each policy instrument in terms of budget, target groups, eligibility criteria, time horizon and implementation. These differences are also a consequence of different country conditions. Classification-JEL: H11; I23; I28; O38 Keywords: co-creation, collaboration, evaluation, intellectual property, interaction, intermediary organisations, knowledge transfer, policy instrument, public research, spin-offs Creation-Date: 2019-04-05 Number: 66 Handle: RePEc:oec:stiaac:66-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karin Gourdon Title: An analysis of market-distorting factors in shipbuilding: The role of government interventions Abstract: This report analyses market-distorting factors in the shipbuilding industry with a focus on government interventions. This paper argues that government interventions in this cyclical industry do more harm than good by exacerbating and prolonging economic downturns through two channels. First, it promotes an over-ordering of vessels through lower delivery time, distorting ship buyers’ investment behaviour. Second, it may maintain unproductive capacity in the market that re-enters a new economic cycle, restarting the vicious circle of industrial excess capacity. Against the background of the global nature of this industry, these channels reinforce the case for effective international disciplines on government interventions. Overall, the mature nature of the shipbuilding industry undermines the need for an active industrial policy, beyond facilitating structural adjustment, and emphasizes the necessity for a horizontal policy approach. The work seeks to provide policy makers with a better understanding of how different factors can contribute to excess capacity. Keywords: Excess Capacity, Government Support, Shipbuilding Creation-Date: 2019-04-12 Number: 67 Handle: RePEc:oec:stiaac:67-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karin Gourdon Title: Ship recycling: An overview Abstract: This report includes an overview of the ship recycling market by providing descriptive statistics, describing the determinants for the decision of ship-owners to demolish vessels, and elaborating on the main market players and the economics of ship recycling. It furthermore provides an outlook of demolition volumes based on ship value estimates, and assesses the impact of the latest implemented international regulation – the Ballast Water Management Convention – on the industry. Since this market faces challenges to recycle vessels in an environmentally sustainable and health-protecting way, the report offers ideas to help solving these difficulties by looking at policies implemented in other industries. Special focus is given to the aircraft and vehicle industries as their characteristics in terms of recycling approach and earnings model are relevant to ship recycling. Most of the presented policies and initiatives have at least one aspect in common, namely the shared responsibility throughout the supply chain. Keywords: Recycling policies, Ship recycling Creation-Date: 2019-04-12 Number: 68 Handle: RePEc:oec:stiaac:68-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karin Gourdon Author-Name: Joaquim Guilhoto Title: Local content requirements and their economic effect on shipbuilding: A quantitative assessment Abstract: This study quantifies the significant economic gains that are expected to be revealed through the abolition or relaxation of local content based policies. The work analyses two specific local content policies affecting directly or indirectly the shipbuilding industry in two countries: Brazil’s local content requirement as part of national concession contracts in the oil and gas sector, and the long-standing US Jones Act obliging intra-US seaborne trade to be conducted on US built and US flagged vessels. The paper’s static simulation exploits OECD’s latest Trade-in-Value-Added (TiVA) data – a rich database on Inter-Country Input-Output relationships. The database has been disaggregated to the level of the shipbuilding industry, enabling an assessment of the effect of the two selected policies on inter-industry trade. The simulation results suggest large economic benefits for both countries in the long-term despite initial losses in the target industry. Classification-JEL: F10; C67; R15 Keywords: input-output models, international trade, Local content requirements, shipbuilding, trade restrictions Creation-Date: 2019-04-12 Number: 69 Handle: RePEc:oec:stiaac:69-EN Template-type: ReDIF-Paper 1.0 Author-Name: Nagui Bechichi Author-Name: Stéphanie Jamet Author-Name: Gustave Kenedi Author-Name: Robert Grundke Author-Name: Mariagrazia Squicciarini Title: Occupational mobility, skills and training needs Abstract: This work investigates how education and training policies may facilitate occupational transitions. It proposes a methodology to estimate cognitive and task-based skill distances across occupation. It identifies the occupational transitions that can occur upon small (of up to 6 months), moderate (up to 1 year) or important (up to 3 years) (re)training spells. “Possible” transitions, i.e. transitions implying reasonable upskilling needs and similar knowledge areas, are distinguished from “acceptable” occupations, i.e. possible transitions entailing limited loss of human capital and income, if any. Possible and acceptable transitions exist for the quasi-totality of occupations, when up to one year of training is considered. Low-skilled occupations display fewer acceptable transitions and generally require higher cognitive or task-based skills. Transitions for many high-skilled occupations entail important wage decreases or skills excesses. Acceptable transitions for occupations at high-risk of automation are harder to find, and tend to require cognitive and task-based skills-related training. Creation-Date: 2019-04-26 Number: 70 Handle: RePEc:oec:stiaac:70-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sandra Planes-Satorra Author-Name: Caroline Paunov Title: The digital innovation policy landscape in 2019 Abstract: How are OECD countries supporting digital innovation and ensuring that benefits spread across the economy? This paper explores the current landscape of strategies and initiatives implemented in OECD countries to support innovation in the digital age. It identifies common trends and differences in national digital, smart industry and artificial intelligence (AI) strategies. The paper also discusses policy instruments used across OECD to support digital innovation targeting four objectives: First, policies aimed at enhancing digital technology adoption and diffusion, including demonstration facilities for SMEs. Second, initiatives that promote collaborative innovation, including via the creation of digital innovation clusters and knowledge intermediaries. Third, support for research and innovation in key digital technologies, particularly AI (e.g. by establishing testbeds and regulatory sandboxes). Fourth, policies to encourage digital entrepreneurship (e.g. through early-stage business acceleration support). Classification-JEL: O30; O31; O33; O38; O25; I28 Keywords: digital innovation, digital technologies and artificial intelligence (AI), innovation and research policy, innovation strategies Creation-Date: 2019-05-06 Number: 71 Handle: RePEc:oec:stiaac:71-EN Template-type: ReDIF-Paper 1.0 Author-Name: Filipe Silva Author-Name: Carlo Menon Author-Name: Paolo Falco Author-Name: Duncan MacDonald Title: Structural adjustment, mass lay-offs and employment reallocation Abstract: This report investigates the factors associated with the intensity of “mass lay-offs” across countries and industries, controlling for the dynamics of overall employment. The results suggest that some important drivers of structural transformation (e.g. digitalisation and globalisation) are not as clearly linked to mass lay-offs as one might expect, once their impact on overall job destruction is accounted for. The report also investigates the re-employability prospects of workers in sectors at high risk of mass lay-offs. Finally, the paper draws implications for different areas of policymaking, from labour market policy to industrial policy and also trade policy. Creation-Date: 2019-05-14 Number: 72 Handle: RePEc:oec:stiaac:72-EN Template-type: ReDIF-Paper 1.0 Author-Name: Julie Lassébie Author-Name: Sahra Sakha Author-Name: Tomasz Kozluk Author-Name: Carlo Menon Author-Name: Stefano Breschi Author-Name: Nick Johnstone Title: Levelling the playing field: Dissecting the gender gap in the funding of start-ups Abstract: This report investigates the gender gap in the funding of innovative start-ups across OECD and BRICS countries using a detailed micro-dataset on start-ups and their founders. Results from empirical analysis show that start-ups with at least one woman in the team of founders are less likely to receive funding by 5-10%. When such start-ups do receive funding, they receive an amount lower by a third compared to start-ups created by male founders. Accounting for founders’ characteristics (their educational background and past professional experience) reduces the gap in likelihood to receive funding, but not the gap in funding amounts. A key conclusion is that addressing the gender gap will require a holistic approach, including through – but not restricted to – the education system. The paper concludes by a discussion of potential mechanisms that could explain the observed gap, presents policy options, and proposes an agenda for future research. Creation-Date: 2019-06-18 Number: 73 Handle: RePEc:oec:stiaac:73-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Name: Sandra Planes-Satorra Title: How are digital technologies changing innovation?: Evidence from agriculture, the automotive industry and retail Abstract: Digital technologies impact innovation in all sectors of the economy, including traditional ones such as agriculture, the automotive industry, and retail. Similar trends across sectors include that the Internet of Things and data are becoming key inputs for innovation, innovation cycles are accelerating, services innovation is gaining importance and collaborative innovation matters more. Sector-specific dynamics are driven by differences in opportunities such technologies offer for innovation in products, processes and business models, as well as differences in the types of data needed for innovation and the conditions for digital technology adoption. The analysis calls for revisiting innovation policy mixes to ensure these remain effective and address emerging challenges. A sectoral approach is needed when designing innovation policies in some domains, especially regarding data access and digital technology adoption policies. The current focus of innovation policies on boosting R&D to meet R&D intensity targets also requires scrutiny. Creation-Date: 2019-07-18 Number: 74 Handle: RePEc:oec:stiaac:74-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laurent Daniel Author-Name: Cenk Yildiran Title: Ship finance practices in major shipbuilding economies Abstract: This report presents an overview and trends of the ship finance practices in major shipbuilding economies. Ship finance is a broad term that involves corporate financial management of shipping companies and shipyards as well as new-building finance. Shipping companies need funds in order to refinance their debts, to sustain their working capital and to acquire vessels. Shipyards also need to finance their working capital before delivering orders and receiving full payments. There are two main sources of capital allowing shipping companies to finance their businesses; raising money through equity financing (sales of shares) or debt (loans and bonds). In the case of shipbuilding, debt financing includes using leasing schemes. Given the fact that the maritime industry is highly capital intensive, and with the 2008 Global Financial Crisis’ depressing effects on global economy and international trade, its financing has become critical for the shipbuilding sector and shipping companies around the world. Creation-Date: 2019-08-01 Number: 75 Handle: RePEc:oec:stiaac:75-EN Template-type: ReDIF-Paper 1.0 Author-Name: Jim Philp Author-Name: David Winickoff Title: Innovation ecosystems in the bioeconomy Abstract: “Innovation ecosystems in the bioeconomy” examines the policy aspects of building the industrial and innovation ecosystems and value chains needed to make a bioeconomy viable as a sustainable means of production. While building biorefineries is more like a formulaic exercise in engineering, enabling these ecosystems and their value chains is a much more complex endeavour. Building on qualitative case studies and face-to-face interviews in eleven participating countries, the study reveals the diverse ways countries are seeking to achieve the goals set by national strategies and policies. The current report draws lessons from this diverse set of national case studies to generate both common and country-specific insights that can enable this transition from a fossil-based economy to a more sustainable one. These lessons include the need for systems-based approaches, attention to policy alignment, more focus on demand-side instruments, diversification of products, enabling medium-sized companies and harnessing converging technologies. Creation-Date: 2019-09-05 Number: 76 Handle: RePEc:oec:stiaac:76-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Martin Borowiecki Author-Workplace-Name: OECD Author-Name: Nevine El-Mallakh Author-Workplace-Name: Université Paris 1 Panthéon-Sorbonne Title: Cross-country evidence on the contributions of research institutions to innovation Abstract: This paper presents preliminary evidence on the patenting activities of 21 200 research institutions - 20 091 higher education institutions (HEIs) and 1 109 public research institutes (PRIs) - for 36 OECD countries and China from 1992 to 2014. Our evidence, which builds on a database that matches research institutions to a sample of their patent applications, indicates patent applications to the European Patent Office (EPO) filed by research institutions grew faster than industry patents. Those jointly filed by industry and research institutions grew even faster. However, research institutions’ share in patent applications remains low and their ratio of patents granted to applications is below that of industry. An econometric analysis at postal code level shows that geographical proximity to research institutions is associated with higher industry patenting. Results from an instrumental variable estimation indicate that research institutions positively influence local industry patenting, including in life sciences and digital technologies. Classification-JEL: I23; O31; O34 Keywords: China, Higher education institutions (HEIs), innovation, local knowledge spillovers, OECD countries, patents, public research institutes (PRIs), universities Creation-Date: 2019-09-24 Number: 77 Handle: RePEc:oec:stiaac:77-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin Borowiecki Author-Name: Diogo Machado Author-Name: Caroline Paunov Author-Name: Sandra Planes-Satorra Title: Supporting research for sustainable development Abstract: This document presents nine innovation policy initiatives from different OECD countries that support research and innovation for sustainable development by embracing systemic solutions to address the challenge. The three types of initiatives reviewed include: i) grant schemes that support the development of environmental technologies; ii) programmes that foster research collaborations to address environmental challenges; and iii) smart city initiatives that support sustainable development in urban areas often by leveraging the use of digital technologies. The nine policy initiatives, which were selected based on an overview of initiatives gathered by the EC-OECD STIP Compass database, are described with regards to their main features, including policy objective, policy instrument(s) implemented, target groups, selection criteria and procedures, implementation challenges faced as well as their impact. Classification-JEL: Q01; Q55; Q56; Q58; O13; O30 Keywords: environmental technologies, innovation policy, research, sustainable development Creation-Date: 2019-10-11 Number: 78 Handle: RePEc:oec:stiaac:78-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Sandra Planes-Satorra Author-Workplace-Name: OECD Author-Name: Greta Ravelli Author-Workplace-Name: OECD Title: Review of national policy initiatives in support of digital and AI-driven innovation Abstract: What can we learn from new policies implemented in different OECD countries to foster digital and AI-driven innovation? This document reviews and extracts lessons from 12 national policy initiatives (four AI strategies and eight policy programmes) aimed at supporting breakthrough digital and AI-driven innovation and the application of those innovations by industry. Most selected policy initiatives actively involve multiple stakeholders from public research, industry and government, have mixed public-private funding models and seek international co-operation on AI. AI and digital research and innovation centres encourage interdisciplinarity, reduce hierarchies within centres and increase the autonomy of staff to enhance centres’ agility and spur creativity. AI strategies set specific actions to strengthen AI research and capabilities, support business adoption of AI and develop standards for the ethical use of AI. Responsible data-access and sharing regulations, infrastructure investments, and measures to ensure that AI contributes to sustainable and inclusive growth are other priorities. Classification-JEL: O30; O31; O33; O38; O25; I28 Keywords: artificial intelligence strategies, digital innovation, digital technologies, innovation policy Creation-Date: 2019-10-17 Number: 79 Handle: RePEc:oec:stiaac:79-EN Template-type: ReDIF-Paper 1.0 Author-Name: Diogo Machado Author-Name: Yilong Qu Author-Name: Mario Cervantes Title: Innovation policies for sustainable development: Low-carbon energy and smart-city initiatives Abstract: This monograph benchmarks innovation policies for sustainability, focusing on two key areas: low-carbon and environmental technologies, and “smart-city” initiatives in selected OECD countries as well as the European Union. Country coverage of low-carbon technologies includes both natural resource-based energy-rich countries (e.g. Canada and the United States) and energy-challenged countries (e.g. Germany and Japan). Country or regional coverage of smart cities programmes focuses on Australia, Austria, Finland and Sweden, as well as two international programmes operated by the European Commission and the Nordic Council. The monograph assess the policies’ sectoral priorities. It reviews their portfolio of instruments, budgets, and monitoring and evaluation strategies, international co-operation strategies and identifies critical success factors. Creation-Date: 2019-10-17 Number: 80 Handle: RePEc:oec:stiaac:80-EN Template-type: ReDIF-Paper 1.0 Author-Name: José Guimón Author-Workplace-Name: Universidad Autónoma de Madrid Title: Policy initiatives to enhance the impact of public research: Promoting excellence, transfer and co-creation Abstract: Policies to boost the impact of public research can be classified into three broad categories. Firstly, policy initiatives promoting research excellence encourage frontier research by providing large-scale, long-term competitive funding to selected research centres. Secondly, policies supporting knowledge transfer aim at commercialising the results of public research through patent licensing, spin-off companies, and other channels. Thirdly, policies promoting science-industry co-creation focus on fostering more intense modes of research collaboration through joint funding, shared facilities and mixed teams; often involving other civil society stakeholders besides public research institutions and firms. This paper illustrates the variety of options available within each of these three types of policies, based on a review of twelve case studies across nine different countries. The analysis draws attention to the design options, budgets, implementation challenges, international scope, evaluation practices and lessons learnt from these policy initiatives. Creation-Date: 2019-10-17 Number: 81 Handle: RePEc:oec:stiaac:81-EN Template-type: ReDIF-Paper 1.0 Author-Name: Gernot Hutschenreiter Author-Workplace-Name: OECD Author-Name: Johannes Weber Author-Workplace-Name: OECD Author-Name: Christian Rammer Author-Workplace-Name: Centre for European Economic Research Title: Innovation support in the enterprise sector: Industry and SMEs Abstract: This policy paper outlines major policy trends in public support of innovation activities in industry and SMEs across OECD countries. It discusses the policy mix to strengthen business R&D and innovation, and possible avenues to improve this mix in response to evolving needs, driven new trends in technology and other factors. Across the OECD, governments strive to reinforce international competitiveness through a variety of policy initiatives supporting business innovation. In particular, these initiatives facilitate the technological upgrading of existing industries and the development of strategic sectors. Twelve case studies discuss selected initiatives in the following areas: Support for innovative enterprises and clusters, development of strategic industrial sectors in particular in manufacturing, and the transition of industry towards new production methods (Industry 4.0). While the dimensions for the effective implementation of these initiatives vary, this paper identifies some features that may help identify good practices in their design, implementation and evaluation. Creation-Date: 2019-10-17 Number: 82 Handle: RePEc:oec:stiaac:82-EN Template-type: ReDIF-Paper 1.0 Author-Name: Martin Borowiecki Author-Workplace-Name: OECD Author-Name: James Philp Author-Workplace-Name: OECD Title: Policy initiatives for health and the bioeconomy Abstract: This document presents twelve policy initiatives supporting health and the bioeconomy from different OECD countries. The initiatives reviewed include: i) funding for public health centres that translate biomedical research into clinical research and care; ii) cross-border public-private consortia around health research and innovation; iii) strategies developed by national health agencies promoting translational research; and iv) national high-level strategies for the bioeconomy. It also provides a comparison of these initiatives with a focus on policy objectives, targets groups, sectoral priorities, budget, time horizon, selection criteria, international collaboration, and evaluation of the initiatives. Creation-Date: 2019-10-17 Number: 83 Handle: RePEc:oec:stiaac:83-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alan Paic Author-Workplace-Name: OECD Author-Name: Camille Viros Author-Workplace-Name: OECD Title: Governance of science and technology policies Abstract: This document provides learnings from 13 case studies on governance mechanisms of national and supranational science, technology and innovation initiatives. As countries strive to resolve societal challenges, “mission-oriented” approaches complement traditional ones centred on national competitiveness, specific industrial sectors or technologies. Governance settings contribute overall to a more inclusive, transparent and responsible STI system, in particular through a whole-of-government approach, the consultation of academia, the private sector and civil society, the implementation of strategies by professional agencies, and the increasingly common use of evaluation. Several critical dimensions facilitate the success of STI policies. They include a commitment at the highest level of government, strong public-private collaboration in R&D, continuous evaluation and improvement, a “mission-oriented” approach, coherence of policies and flexibility in setting priorities, as well as overall harmonisation and rationalisation of programmes in order to maximise efficiency and reduce duplication. Creation-Date: 2019-10-17 Number: 84 Handle: RePEc:oec:stiaac:84-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Dominique Guellec Author-Workplace-Name: OECD Author-Name: Nevine El-Mallakh Author-Workplace-Name: Université Paris 1 Panthéon-Sorbonne Author-Name: Sandra Planes-Satorra Author-Workplace-Name: OECD Author-Name: Lukas Nüse Author-Workplace-Name: Bertelsmann Foundation Title: On the concentration of innovation in top cities in the digital age Abstract: This paper investigates how digital technologies have shaped the concentration of inventive activity in cities across 30 OECD countries. It finds that patenting is highly concentrated: from 2010 to 2014, 10% of cities accounted for 64% of patent applications to the European Patent Office, with the top five (Tokyo, Seoul, San Francisco, Higashiosaka and Paris) representing 21.8% of applications. The share of the top cities in total patenting increased modestly from 1995 to 2014. Digital technology patent applications are more concentrated in top cities than applications in other technology fields. In the United States, which has led digital technology deployment, the concentration of patent applications in top cities increased more than in Japan and Europe over the two decades. Econometric results confirm that digital technology relates positively to patenting activities in cities and that it benefits top cities, in particular, thereby strengthening the concentration of innovation in these cities. Classification-JEL: R12; O31; O34 Keywords: cities, digital technologies, geography of innovation, innovation, local knowledge spillovers, OECD countries, patenting Creation-Date: 2019-12-16 Number: 85 Handle: RePEc:oec:stiaac:85-EN Template-type: ReDIF-Paper 1.0 Author-Name: Giuseppe Berlingieri Author-Workplace-Name: OECD Author-Name: Sara Calligaris Author-Workplace-Name: OECD Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Rudy Verlhac Author-Workplace-Name: OECD Title: Laggard firms, technology diffusion and its structural and policy determinants Abstract: This paper provides new evidence on the main characteristics of laggard firms - firms in the bottom 40% of the productivity distribution - and their potential for productivity growth. It finds that laggards are on average younger and smaller than more productive firms, and matter for aggregate resource reallocation. Moreover, younger laggards converge faster toward the productivity frontier, suggesting that the composition of the laggard group matters for future productivity. Yet this report finds that laggards converge at a slower rate in highly digital- and skill-intensive industries, suggesting that there are barriers to technology and knowledge diffusion. This could help explain the much-debated productivity slowdown and the increased productivity dispersion. This report also finds that policies aimed at improving workers’ skills, alleviating financial constraints to investments and increasing firms' absorptive capacity through direct R&D support can accelerate the diffusion of knowledge and technology, and help laggard firms to catch up. Classification-JEL: D2; D4; L2; O57 Keywords: Catch-up, Laggards, Productivity Creation-Date: 2020-03-05 Number: 86 Handle: RePEc:oec:stiaac:86-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marit Undseth Author-Workplace-Name: OECD Author-Name: Claire Jolly Author-Workplace-Name: OECD Author-Name: Mattia Olivari Author-Workplace-Name: OECD Title: Space sustainability: The economics of space debris in perspective Abstract: This paper explores selected long-term sustainability issues related to increasing activities in outer space, with a particular focus on the economics of space debris. It reviews trends of selected space sustainability issues and discusses a range of possible policy actions. A notable policy response would be to strengthen space situational awareness systems and data reporting structures, while addressing operator compliance behaviour at both the national and international levels. Adequately addressing these challenges will require a reinforced coordinated international approach, in addition to increased collaboration with the private sector. Classification-JEL: F01; F55; F60; O30; Q55 Keywords: space debris, space sustainability Creation-Date: 2020-04-08 Number: 87 Handle: RePEc:oec:stiaac:87-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Addressing societal challenges using transdisciplinary research Abstract: This report looks at how transdisciplinary research, which combines knowledge from different scientific disciplines with that of public and private sector stakeholders and citizens, can be used to address complex societal challenges. This includes developing effective responses in acute crises, such as the COVID-19 pandemic, as well as longer-term solutions for sustainability development. In a series of 28 case studies, each of which is briefly summarised in the report, it identifies the key obstacles to effectively implementing transdisciplinary research. Many of these are embedded in the way that research systems are structured and managed and they are amenable to policy intervention. Examples of how various actors, including funding agencies and universities are adapting to better accommodate the requirements of transdisciplinary research are included in the report and related policy actions are ascribed for these actors. Creation-Date: 2020-06-16 Number: 88 Handle: RePEc:oec:stiaac:88-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: OECD case study of Norway’s digital science and innovation policy and governance landscape Abstract: This report describes Norway’s landscape for Digital Science and Innovation Policy (DSIP) - the overarching framework through which governments make intensive use of digital technologies and data resources to support the formulation, delivery and administration of STI policy. The report describes how Norway’s DSIP landscape is shaped by its broader digital government framework and agenda, introduces the main actors in the DSIP system and discusses their main features in relation to their key objectives and the generic purposes of DSIP approaches. Special attention is paid to the role of STI statistics. It concludes by drawing out key findings and potential implications to help the Norwegian government identify opportunities that promote the system’s further development in line with its strategic objectives. This study also provides an indication of the potential opportunities and challenges that other countries might face when developing, implementing and maintaining digital systems for STI policy and administration. Keywords: digitalisation, innovation, policy governance, science and technology, statistics Creation-Date: 2020-07-08 Number: 89 Handle: RePEc:oec:stiaac:89-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Building digital workforce capacity and skills for data-intensive science Abstract: This report looks at the human resource requirements for data-intensive science, focusing primarily on research conducted in the public sector, and the related challenges and training needs. Digitalisation is, to some extent, being driven by science, while simultaneously affecting all aspects of scientific practice. Open science, including access to data, is being widely promoted, and investment in cyber-infrastructures and digital platforms is increasing; but inadequate attention has been given to the skills that researchers and research support professionals need to fully exploit these tools. The COVID-19 pandemic, which struck as this report was being finalised, has underscored the critical importance of data-intensive science and the need for strategic approaches to strengthening the digital capacity and skills of the scientific enterprise as a whole. The report includes policy recommendations for various actors and good practice examples to support these recommendations. Creation-Date: 2020-07-10 Number: 90 Handle: RePEc:oec:stiaac:90-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Author-Name: Science Europe Title: Optimising the operation and use of national research infrastructures Abstract: This report is the outcome of a joint activity between Science Europe and the OECD, and presents a generic framework for improving the use and operation of national research infrastructures (RIs), which play a key role in enabling and developing research in all scientific domains and represent an increasingly large share of research investment. It includes two guiding models: one for portfolio management and one for user-base optimisation. These identify the key principles of an effective national RI portfolio management system and the factors that RI managers should consider with regards to optimising the user base of national RIs. Both guiding models account for the diversity of national systems and RI operation approaches. The report also contains a series of more generic policy recommendations and suggested actions for RI portfolio managers and RI managers. Creation-Date: 2020-08-03 Number: 91 Handle: RePEc:oec:stiaac:91-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The effects of R&D tax incentives and their role in the innovation policy mix: Findings from the OECD microBeRD project, 2016-19 Abstract: This report presents new evidence on the impact of R&D tax incentives and direct funding of business R&D, drawing on distributed cross-country and firm-level analyses undertaken as part of the first phase of the OECD microBeRD project (2016-19). This “distributed” approach facilitates a harmonised analysis of confidential business R&D and tax relief microdata in 20 OECD countries. microBeRD provides new insights into the effectiveness of R&D tax incentives in encouraging business R&D in the OECD area and the heterogeneity of effects both within and across OECD countries, including the underlying impact mechanisms. The report contributes to the debate on the role of R&D tax incentives in the policy mix by providing additional comparative evidence on the effects of alternative business R&D inducement incentives. Classification-JEL: O38; H25; L25 Keywords: Innovation, Science and technology, Tax Creation-Date: 2020-09-03 Number: 92 Handle: RePEc:oec:stiaac:92-EN Template-type: ReDIF-Paper 1.0 Author-Name: Michele Rimini Author-Workplace-Name: OECD Author-Name: Anthony de Carvalho Author-Workplace-Name: OECD Author-Name: Fabien Mercier Author-Workplace-Name: OECD Author-Name: Valentina Burrai Author-Workplace-Name: OECD Author-Name: Benjamin Liebman Author-Workplace-Name: Saint Joseph’s University Author-Name: Timothy de Stefano Author-Workplace-Name: Harvard Business School Title: Barriers to exit in the steel sector Abstract: This paper explores the nature of exit barriers in the steel industry, their social and economic implications, and policy approaches to deal with exits and steel industry restructuring. Barriers to exit in the steel industry require attention due to their negative impacts on excess capacity. Such barriers mainly stem from government interventions that hinder the closure of inefficient or unviable steel plants, though cost factors specific to the steel industry are important barriers, as well. Exits may also entail important costs associated with redundancy payments to workers, environmental clean-up and operations to dismantle mills. The paper concludes with specific policy recommendations to promote adjustment, including removing subsidies and other government support measures that maintain unviable plants, assisting displaced steel workers into other activities, and other measures to limit the social costs of steel plant closures. Keywords: barriers to exit, steel, steel excess capacity, structural adjustment, subsidies and support measures Creation-Date: 2020-10-13 Number: 93 Handle: RePEc:oec:stiaac:93-EN Template-type: ReDIF-Paper 1.0 Author-Name: Flavio Calvino Author-Workplace-Name: OECD Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Rudy Verlhac Author-Workplace-Name: OECD Title: Declining business dynamism: Structural and policy determinants Abstract: This paper analyses trends in business dynamism across 18 countries and 22 industries over the last two decades, using highly representative comparable data. It finds that declines in business dynamism, pervasive in many countries, are driven by dynamics occurring at a disaggregated sectoral level, rather than reallocation across sectors. Average trends within sectors point to steady declines in each country over the last two decades, even after accounting for the role of the business cycle, with market structure and firm heterogeneity emerging as prominent determinants. Investments in intangibles and digital technologies, globalisation, and changes in demographics also contribute to these trends. Policy can, however, help boost business dynamism by reducing barriers to entry and to knowledge diffusion, favouring experimentation and creative destruction, and increasing absorptive capacity and firms’ potential to benefit from technological change. Keywords: Business dynamism, Employment dynamics, Firm demography, Job reallocation Creation-Date: 2020-11-10 Number: 94 Handle: RePEc:oec:stiaac:94-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laura Kreiling Author-Workplace-Name: OECD Author-Name: Douglas K. R. Robinson Author-Workplace-Name: Centre national de la recherche scientifique Author-Name: David Winickoff Author-Workplace-Name: OECD Title: Collaborative platforms for innovation in advanced materials Abstract: Advanced materials hold significant potential to create better products and production processes. Yet realising their promise remains challenging: historically it has taken 15 to 20 years from discovery to deployment of new materials in products. Consequently, governments have been creating shared digital and physical infrastructures – “collaborative platforms” – to pool and manage global data, drive the development of nascent industries, and create hubs of interdisciplinary research, development and training. Based on evidence from 12 case studies, this report characterises governance mechanisms of collaborative platforms for advanced materials such as terms of funding, access, and IP policy and explores how they can create different kinds of value. Technology convergence, the engagement of society and digitalisation are identified as key trends. The study describes conditions under which collaborative platforms can align and power value chains, foster standards, catalyse innovation ecosystems and build education, skills and social capital. Creation-Date: 2020-12-14 Number: 95 Handle: RePEc:oec:stiaac:95-EN Template-type: ReDIF-Paper 1.0 Author-Name: Valentina Burrai Author-Name: Luciano Giua Author-Name: Kateryna Perepechay Title: Cross border investment by state-owned enterprises Abstract: The paper analyses data on state-owned enterprises as cross-border investors and takes a first step towards analysing their investment characteristics since 2000. It shows that the number of cross-border investments by state-owned enterprises was overall small, with most originating from the People’s Republic of China (hereafter “China”), and suggests that the investment preferences of state-owned enterprises may fuel excess capacity in the steel sector. This is because state-owned enterprises display a preference for building new capacity over acquiring existing capacity when investing abroad, and a preference for investment destinations with volatile demand growth. Data also suggest that state-owned enterprises might be more likely to undertake domestic capacity closures after a cross-border investment, which is likely influenced by recent policies introduced to curb excess capacity in China. Conversely, the data offer insufficient evidence regarding the link between cross-border investment by state-owned enterprises and capacity outcomes in target jurisdictions. Creation-Date: 2020-12-15 Number: 96 Handle: RePEc:oec:stiaac:96-EN Template-type: ReDIF-Paper 1.0 Author-Name: Filipe Silva Author-Workplace-Name: OECD Author-Name: Fabien Mercier Author-Workplace-Name: OECD Title: The changing characteristics of steel firms: Insights from the new OECD steel database Abstract: Information on the structural characteristics of steel firms over time provides important insights into the dynamics of the steel industry and how this industry has been restructuring and adapting in a rapidly changing environment. This paper builds on data from the new and unique OECD Steel database to shed light on the micro determinants of changes in the steel sector. The OECD Steel database provides invaluable insights into the characteristics of steel plants and steel firms, and how they have evolved in the last 20 years. Results from the analyses in this paper suggest that the steel sector could benefit from increased business dynamism, while data show that economies of scale and technology are important factors influencing adjustment in the sector. The paper concludes by offering several different avenues for future research that could build upon the OECD Steel database. Creation-Date: 2020-12-16 Number: 97 Handle: RePEc:oec:stiaac:97-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laurent Daniel Author-Name: Changhoon Lee Author-Name: Pieter Parmentier Title: State-owned enterprises in the shipbuilding sector Abstract: This paper uses firm-level data analysis to assess the extent, and the economic and policy implications of state-owned enterprises (hereafter SOEs) in the shipbuilding sector. Even though the available data appears to be limited in certain respects, one of the paper’s key findings demonstrates that SOEs occupy a significant share in global ship completions, but are likely to operate with lower profitability rates and to be more highly leveraged than private enterprises. This report also presents a number of guiding principles to assess SOEs’ behaviour and their potential impact on the shipbuilding market, such as good corporate governance frameworks and the principle of competitive neutrality. To provide a concrete comparative analysis of SOEs and their private counterparts, the paper examines a case-study comparing the Chinese central state-owned enterprise CSIC and its private counterpart Yangzijiang Shipbuilding. Keywords: Industrial policy, Shipbuilding, State-owned enterprises Creation-Date: 2021-02-03 Number: 98 Handle: RePEc:oec:stiaac:98-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Sandra Planes-Satorra Author-Workplace-Name: OECD Title: Science, technology and innovation in the time of COVID-19 Abstract: Science, technology and innovation (STI) have played a key role in responding to the COVID-19 pandemic and the unprecedented socio-economic crisis it has triggered. This paper explores how the pandemic affected STI in 2020, including how STI was mobilised to provide vaccines, treatments and innovative (often digital) solutions to address “social distancing”. The paper also reviews the quick and agile STI policy responses implemented across countries to stimulate research and innovation activities to find solutions to the pandemic. Moreover, the paper covers STI policies that targeted universities, research centres, innovative businesses and entrepreneurs most affected by the crisis. It also raises key debates on the effectiveness of such policies. Follow-up work will leverage more and better data to improve this early assessment of the impacts of the crisis and STI policy responses. Classification-JEL: O30; I23; D20; H12 Keywords: COVID-19, OECD countries, science, STI policy, technology and innovation (STI) Creation-Date: 2021-02-10 Number: 99 Handle: RePEc:oec:stiaac:99-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philippe Larrue Author-Workplace-Name: OECD Title: The design and implementation of mission-oriented innovation policies: A new systemic policy approach to address societal challenges Abstract: This paper analyses ‘mission-oriented innovation policies’ (MOIPs), a new type of systemic intervention that a growing number of countries has implemented in order to tackle mounting societal challenges. These policies aim to alleviate some of the most prevalent weaknesses within many national systems of innovation, notably the lack of holistic strategic orientation and policy co-ordination, and fragmented policy mixes. This paper leverages a dedicated analytical framework to systematically explore the challenges and opportunities that these policies present at initiative and country levels. In doing so, it provides a better understanding of the different ways in which governments design, fund and coordinate MOIPs, and contributes to broadening the range of options available to either improve or initiate this policy approach. This paper complements the MOIP Online Toolkit (https://stip.oecd.org/stip/moip), the OECD knowledge platform on MOIPs. Creation-Date: 2021-02-05 Number: 100 Handle: RePEc:oec:stiaac:100-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emile Cammeraat Author-Workplace-Name: OECD Author-Name: Lea Samek Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: Management, skills and productivity Abstract: This paper studies how industries’ investment in organisational capital (OC) and workforce skills relate to productivity, building on OECD estimates of OC, output data from the OECD Structural Analysis (STAN) database, and both cognitive and task-based skill indicators from the OECD Programme for the International Assessment of Adult Competencies (PIAAC). The paper finds that at the industry level, workers’ numeracy and endowment of skills related to science, technology, engineering and mathematics (STEM) correlate positively with productivity, and that the positive correlation of STEM skills with productivity is generally larger for OC workers. The paper also finds evidence that skills dispersion harms industry performance. A gap between the ICT skills of OC and non-OC workers seems to trigger a “lost in translation” type of mechanism, whereby communication and information flows become less fluid and impinge upon the economic performance of sectors, correlating negatively with productivity. Keywords: Human Capital, ICT, Labour Productivity, Organisational Capital, Skills, STEM Creation-Date: 2021-02-23 Number: 101 Handle: RePEc:oec:stiaac:101-EN Template-type: ReDIF-Paper 1.0 Author-Name: Hermann Garden Author-Workplace-Name: OECD Author-Name: Naomi Hawkins Author-Workplace-Name: University of Exeter Author-Name: David Winickoff Author-Workplace-Name: OECD Title: Building and sustaining collaborative platforms in genomics and biobanks for health innovation Abstract: Genomic and biobank collaborative platforms hold significant promise for the development of new discoveries and therapies. This paper explores the complex technical, legal and business challenges arising from genomics and biobanks, and brings together ideas and best practices from major national and international platforms, and from a diverse range of experts. The global sharing of biological samples and genomic data has been critical for accelerating our understanding of the biology and spread of COVID-19, and for the development of vaccines and diagnostics. Although some of the policy challenges in the field are well known, they have been reconfigured by the digitalisation of health innovation combined with the increasing complexity and volume of data, the push for global collaboration, and the growing awareness of ethical, legal, and social implications. Keywords: biobanks, collaborative platforms, genomics, governance, health, innovation policy, sustainability Creation-Date: 2021-03-01 Number: 102 Handle: RePEc:oec:stiaac:102-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emile Cammeraat Author-Workplace-Name: OECD Author-Name: Lea Samek Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: The role of innovation and human capital for the productivity of industries Abstract: This paper sheds light on the relationship between innovation, human capital endowment and upgrading, organisational capital (OC) and labour productivity. In addition to assessing correlations, it uses a Heckman selection model to address causal links and to account for the ways in which skills and investment in R&D affect the probability of innovating. The analysis finds that innovative output, the proportion of OC-related workers, investment in training (especially in informal training) and physical capital intensity are positively and significantly related to productivity. In most estimates ICT skills, cognitive skills and the presence of highly skilled workers in an industry also emerge as having a significant and positive relationship with productivity. ICT skills further appear to indirectly shape productivity, through a positive relationship with innovation. Keywords: Human Capital, ICT, Innovation, Labour Productivity, Organisational Capital, Patent, R&D, Skills, STEM, Training Creation-Date: 2021-03-16 Number: 103 Handle: RePEc:oec:stiaac:103-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philippe Larrue Author-Workplace-Name: OECD Title: Mission-oriented innovation policy in Norway: Challenges, opportunities and future options Abstract: This report assesses the potential for mission-oriented innovation policies (MOIPs) to contribute to the sustainable transition in Norway, and examines the challenges and opportunities that MOIPs would present. As part of a series of MOIP national case studies, the report finds that MOIPs could contribute significantly to alleviating some of the long-standing limitations of Norway’s innovation system, acknowledging the country’s strong advantages for mission-orientation and its innovative policy experimentations, such as the Pilot-E scheme and the CLIMIT programme. It proposes two options for Norway’s future MOIP approach, with corresponding recommendations. Under a ‘scaling-up’ option, Norway would develop a system to manage the implementation of cross-agency schemes in relevant challenge areas. A ‘levelling-up’ option would involve the programming of a pilot mission in the four-year investment plan of the next edition of Norway’s Long Term Plan, with support from high-level policy and political actors. Classification-JEL: O14; O25; O38; Q55 Keywords: Innovation, Science and technology, Societal challenges Creation-Date: 2021-04-08 Number: 104 Handle: RePEc:oec:stiaac:104-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Report on China’s shipbuilding industry and policies affecting it Abstract: This report analyses the structural characteristics of China’s shipbuilding industry, notably through comparison of other major shipbuilding economies. Building upon previous reports drafted in 2008 and 2011, it aims to analyse China’s shipbuilding sector from a holistic and multidisciplinary perspective (e.g. the interconnection between trade, competition, monetary, financial, fiscal and industrial policies), with a particular emphasis on government support measures. Key findings from these analyses suggest that: 1) China’s shipbuilding industry has been labelled as a strategic industry, which may equally explain China’s intention to move up the shipbuilding value chain, 2) State-owned conglomerates hold a lot of influence in China’s shipbuilding industry, 3) Government support to the Chinese shipbuilding industry is alleged to have contributed to global excess capacity. Keywords: China, Excess capacity, Shipbuilding, State-owned enterprise, Support measures Creation-Date: 2021-04-09 Number: 105 Handle: RePEc:oec:stiaac:105-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philippe Larrue Author-Workplace-Name: OECD Title: Mission-oriented innovation policy in Japan: Challenges, opportunities and future options Abstract: This report assesses the potential for mission-oriented innovation policies (MOIPs) to contribute to the sustainable transition in Japan, and examines the challenges and opportunities that MOIPs would present. As part of a series of MOIP national case studies, the report finds that the ongoing ambitious and top-down MOIPs led by the center-of-government build upon a long history of proactive and goal-oriented policy intervention. MOIPs in Japan are the latest step of decades of efforts to reduce the fragmentation and lack of holistic coordination of Japan’s science, technology and innovation policy in order to proactively address societal challenges. Available evaluations of these policies demonstrate very encouraging results in that regards. The study concludes with recommendations to pursue these efforts, including by mainstreaming these policy initiatives across the government structure and complementing them with more bottom-up challenge-based initiatives. Classification-JEL: O14; O25; O38; Q55 Keywords: Innovation, Science and technology, Societal challenges Creation-Date: 2021-04-13 Number: 106 Handle: RePEc:oec:stiaac:106-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Sandra Planes-Satorra Author-Workplace-Name: OECD Title: What future for science, technology and innovation after COVID-19? Abstract: The COVID-19 crisis may bring lasting socioeconomic changes, also affecting science, technology and innovation (STI). This paper discusses the effects that the COVID-19 crisis could have on the future of STI and its policies, building on lessons learned from past crises, an analysis of diverse sources of early data and insights from expert discussions in international policy fora. Factors shaping the future of STI include the unequal effects of the crisis on R&D spending across sectors, the accelerated adoption of digital tools and techniques, and changes in the openness and inclusiveness of research and innovation ecosystems. The paper also explores how STI policy could experience fundamental changes as resilience, environmental sustainability and inclusiveness become more prominent objectives on policy agendas. This includes experimentation with new data and digital tools for policy purposes and unconventional policy approaches, which could spur the adoption of new and more effective STI policies. Classification-JEL: O30; I23; H12 Keywords: COVID-19, future developments, innovative (digital) policy tools and approaches, OECD countries, resilience, science, technology and innovation (STI), STI policy Creation-Date: 2021-04-13 Number: 107 Handle: RePEc:oec:stiaac:107-EN Template-type: ReDIF-Paper 1.0 Author-Name: Brilé Anderson Author-Workplace-Name: OECD Author-Name: Emile Cammeraat Author-Workplace-Name: OECD Author-Name: Antoine Dechezleprêtre Author-Workplace-Name: OECD Author-Name: Luisa Dressler Author-Workplace-Name: OECD Author-Name: Nicolas Gonne Author-Workplace-Name: OECD Author-Name: Guy Lalanne Author-Workplace-Name: OECD Author-Name: Joaquim Martins Guilhoto Author-Workplace-Name: OECD Author-Name: Konstantinos Theodoropoulos Author-Workplace-Name: OECD Title: Policies for a climate-neutral industry: Lessons from the Netherlands Abstract: This paper presents a comprehensive assessment of the policy instruments adopted by the Netherlands to reach carbon neutrality in its manufacturing sector by 2050. The analysis illustrates the strength of combining a strong commitment to raising carbon prices with ambitious technology support, uncovers the pervasiveness of competitiveness provisions, and highlights the trade-off between short-term emissions cuts and longer-term technology shift. The Netherlands’ carbon levy sets an ambitious price trajectory to 2030, but is tempered by extensive preferential treatment to energy-intensive users, yielding a highly unequal carbon price across firms and sectors. The country’s technology support focuses on the cost-effective deployment of low-carbon options, which ensures least-cost decarbonisation in the short run but favours relatively mature technologies. The paper offers recommendations for policy adjustments to reach the country’s carbon neutrality objective, including the gradual removal of exemptions, enhanced support for emerging technologies and greater visibility over future infrastructure plans. Classification-JEL: L52; O38; Q54; Q55; Q58 Keywords: Carbon pricing, Climate change policy, Technology support Creation-Date: 2021-04-15 Number: 108 Handle: RePEc:oec:stiaac:108-EN Template-type: ReDIF-Paper 1.0 Author-Name: David Winickoff Author-Workplace-Name: OECD Author-Name: Laura Kreiling Author-Workplace-Name: OECD Author-Name: Martin Borowiecki Author-Workplace-Name: OECD Author-Name: Hermann Garden Author-Workplace-Name: OECD Author-Name: James Philp Author-Workplace-Name: OECD Title: Collaborative platforms for emerging technology: Creating convergence spaces Abstract: Governments, together with partners in industry and civil society, are developing experimental forms of collaborative platforms to provide better linkages between research and innovation, and to promote the development and use of emerging technology. This report analyses 33 case studies from key fields of emerging technology – genomics, advanced materials and engineering biology – and finds that collaborative platforms are most effective when they act as “convergence spaces” for the fusion of diverse disciplines, actors and technology. It also shows how governance mechanisms shape platform operations and act as policy levers for ordering what amounts to a common pool resource: they aim to maximise tangible and intangible value, realise sustainability models, foment collaboration, and promote technological integration. After presenting cross-cutting and comparative findings on key components of governance, the report concludes with policy implications for the design of existing and future collaborative platforms. Keywords: advanced materials, biobanks, collaborative platforms, convergence space, engineering biology, genomics, governance, innovation policy, science and technology Creation-Date: 2021-04-23 Number: 109 Handle: RePEc:oec:stiaac:109-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Guidance for a biorefining roadmap for Thailand Abstract: Biorefineries present an alternative to fossil-based production, and can create employment, wealth and the ecosystem needed to make them function. Thailand is establishing a bioeconomy with widespread biorefining as a strategy for future economic growth. There is political will to establish in Thailand, if feasible, small, decentralised biorefineries to which farmers can locally deliver biomass as feedstock, which can then be processed into bio-based products. This would help to relieve rural poverty, which is still a problem in some areas of Thailand despite progress. Developing a biorefining roadmap will help to assess the feasibility of such an initiative. Keywords: Bioeconomy, Biomass, Biorefinery, Biotechnology, Innovation, Manufacturing, Research, Roadmap, Thailand Creation-Date: 2021-04-29 Number: 110 Handle: RePEc:oec:stiaac:110-EN Template-type: ReDIF-Paper 1.0 Author-Name: Barrie Stevens Author-Workplace-Name: OECD Author-Name: Claire Jolly Author-Workplace-Name: OECD Author-Name: James Jolliffe Author-Workplace-Name: OECD Title: A new era of digitalisation for ocean sustainability?: Prospects, benefits, challenges Abstract: As the United Nations Decade on Ocean Science for Sustainable Development begins, this paper explores recent and likely future digital technologies - especially in the field of ocean observation - that will contribute to ocean sustainability. It examines advances that could lead to substantial improvements in the data collection and analysis of the impact of climate change and human activity on marine ecosystems, while also contributing to the monitoring and reduction of the ecological footprint of ocean-related economic activity. The paper also provides preliminary reflections on how the COVID-19 pandemic might affect digitalisation in the ocean economy, and what strategies could help support ocean research and innovation during and after the crisis. Creation-Date: 2021-05-05 Number: 111 Handle: RePEc:oec:stiaac:111-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Effective policies to foster high-risk/high-reward research Abstract: This report analyses policies and research funding mechanisms designed to foster high-risk high-reward (HRHR) research, and explores promising practices for fostering HRHR research in a variety of contexts. The underlying concern is that failure to encourage and support research on risky, ‘out-of-the-box’ ideas may jeopardise a country’s longer-term ability to compete economically, harness science for solving national and global challenges, and contribute to the progress of science as a whole. The analysis in this paper is primarily based on a survey of individual HRHR research funding schemes in different countries, complemented by targeted interviews. This survey was supplemented by an analysis of HRHR research-oriented programmes and by the feedback from an international workshop that included all relevant stakeholders. Creation-Date: 2021-05-18 Number: 112 Handle: RePEc:oec:stiaac:112-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Reducing the precarity of academic research careers Abstract: This report analyses academic research careers, with a focus on the “research precariat”, defined as postdoctoral researchers holding fixed-term positions without permanent or continuous employment prospects. It identifies policies and practices that aim to improve researchers’ well-being, develop more diverse, equitable and inclusive research systems, attract and retain the best talent in academia, and ultimately improve the quality of science. The report presents a conceptual framework and synthesis of available data and policy information. It draws on a survey of OECD countries that included country notes and interviews with policy officials, funders, representatives of research performing organisations and researchers. It offers recommendations and a set of policy options to improve working conditions and professional development, better link funding to human resource policies, make governance more inclusive, promote equal opportunities and diversity, improve human resource management, promote inter-sectoral and international mobility, and develop the evidence base on research careers. Creation-Date: 2021-05-20 Number: 113 Handle: RePEc:oec:stiaac:113-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marit Undseth Author-Workplace-Name: OECD Author-Name: Claire Jolly Author-Workplace-Name: OECD Author-Name: Mattia Olivari Author-Workplace-Name: OECD Title: Evolving public-private relations in the space sector: Lessons learned for the post-COVID-19 era Abstract: Where is the space sector headed? How can public and private actors work together to solve mutual challenges and sustain growth? What is the role of government programmes and funding? This paper addresses these and other questions by reviewing the evolving relationship between public and private actors in the space sector over the last two decades, based on case studies from North America, Europe and Asia. It provides new evidence for navigating the post-Covid-19 era, notably by exploring the range of government roles in supporting space sector innovation and expansion, from funder and developer of space programmes to partner and enabler of private sector growth. Classification-JEL: F01; H57; O30; Q55 Keywords: COVID-19 impacts, innovation policies, public procurement, public-private partnerships, space sector Creation-Date: 2021-06-03 Number: 114 Handle: RePEc:oec:stiaac:114-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laura Kreiling Author-Workplace-Name: OECD Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Knowledge co-creation in the 21st century: A cross-country experience-based policy report Abstract: The importance of knowledge co-creation – the joint production of innovation between industry, research and possibly other stakeholders, such as civil society – has been increasingly acknowledged. This paper builds on 13 cross-country case studies and co-creation experiences during the COVID-19 pandemic to characterise the diversity of knowledge co-creation initiatives and identify lessons for policy. The paper identifies a strong rationale for policy to support knowledge co-creation because the benefits of successful co-creation initiatives outweigh the initial co-ordination costs. Moreover, knowledge co-creation initiatives can contribute to democratising innovation. Successful initiatives engage all stakeholders and have effective governance and management structures. They also have clearly defined ownership and use rights of the collaborations’ outcomes and benefit from favourable conditions to operate, including temporary staff mobility and institutional set-ups that facilitate collaboration and effective communication among participants. Classification-JEL: O31; O32; O35 Keywords: case studies, collaborative innovation, COVID-19 pandemic, industry-science linkages, knowledge co-creation, OECD countries, policy recommendation Creation-Date: 2021-06-16 Number: 115 Handle: RePEc:oec:stiaac:115-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mattia Olivari Author-Name: Claire Jolly Author-Name: Marit Undseth Title: Space technology transfers and their commercialisation Abstract: This paper examines space technology transfers and their commercialisation, focussing on transfers from publicly funded space programmes to different sectors of the economy. It notably compares practices from Europe, North America and Asia for the first time. It identifies the conditions for enabling successful space technology transfers, as well as the most common channels for commercialisation. The paper also reviews methodological issues in measuring and assessing the benefits of transfers, and provides recommendations to develop improved and internationally comparable evidence. The analysis benefits from original content and endorsement from some of the most active space agencies in OECD countries and beyond. Creation-Date: 2021-07-20 Number: 116 Handle: RePEc:oec:stiaac:116-EN Template-type: ReDIF-Paper 1.0 Author-Name: Alistair Nolan Title: Making life richer, easier and healthier: Robots, their future and the roles for public policy Abstract: This paper addresses the current and emerging uses and impacts of robots, the mid-term future of robotics and the role of policy. Progress in robotics will help to make life easier, richer and healthier. Wider robot use will help raise labour productivity. As science and engineering progress, robots will become more central to crisis response, from helping combat infectious diseases to maintaining critical infrastructure. Governments can accelerate and orient the development and uptake of socially valuable robots, for instance by: supporting cross-disciplinary R&D, facilitating research commercialisation, helping small and medium-size enterprises (SMEs) understand the opportunities for investment in robots, supporting platforms that highlight robot solutions in healthcare and other sectors, embedding robotics engineering in high school curricula, tailoring training for workers with vocational-level mechanical skills, supporting data development useful to robotics, ensuring flexible regulation conducive to innovation, strengthening digital connectivity, and raising awareness of the importance of robotics. Creation-Date: 2021-07-29 Number: 117 Handle: RePEc:oec:stiaac:117-EN Template-type: ReDIF-Paper 1.0 Author-Name: Charles Cadestin Author-Workplace-Name: OECD Author-Name: Alexander Jaax Author-Workplace-Name: OECD Author-Name: Sébastien Miroudot Author-Workplace-Name: OECD Author-Name: Carmen Zürcher Author-Workplace-Name: OECD Title: Multinational enterprises and intangible capital Abstract: This paper provides new evidence on the role of intangible capital in global value chains (GVCs) by focusing on the role of multinational enterprises (MNEs) and their foreign affiliates in value capture through intangible assets. Industry-level data suggest that foreign affiliates of MNEs generate more income through intangible capital than domestic-owned firms. Intangible returns from foreign affiliates are found both in the host economy and in foreign-owned firms in other countries participating in the GVC. Some heterogeneity is observed across GVCs with returns to intangible capital of foreign-owned firms concentrated in key manufacturing (chemicals including pharmaceuticals, food products, ICT and electronics, and motor vehicles) and services GVCs (finance and insurance, other business services, wholesale and retail, and telecoms). Five case studies (Adidas, AstraZeneca, Rocket Internet, Starbucks and Tata Consultancy Services) complement the analysis by looking at the role of intangible capital in the GVC of specific MNEs. Keywords: factor income, foreign affiliates, global value chains, intangible capital, multinational enterprises Creation-Date: 2021-09-09 Number: 118 Handle: RePEc:oec:stiaac:118-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laurent Daniel Author-Name: Changhoon Lee Author-Name: Judith Spieth Title: Shipbuilding policy and market developments in selected economies Abstract: This report presents shipbuilding market developments of nine of the largest shipbuilding economies which are not members of the OECD Council Working Party on Shipbuilding (WP6). Over the last 20 years, the share of these economies in global ship deliveries has been increasingly driven by the rapid growth of Chinese ship completions and reached 43.7% of global completions in 2020. The report also provides an overview of support measures taken by selected WP6 non-members. Using public sources, over the period March 2020 to March 2021, these economies appeared to employ a total of 21 support measures, with the most frequently used measure being protection of the domestic market. Of these economies, the People’s Republic of China used the largest number of support measures, followed by the United States. Keywords: Industrial policy, Shipbuilding Creation-Date: 2021-09-15 Number: 119 Handle: RePEc:oec:stiaac:119-EN Template-type: ReDIF-Paper 1.0 Author-Name: Lea Samek Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Author-Name: Emile Cammeraat Author-Workplace-Name: OECD Title: The human capital behind AI: Jobs and skills demand from online job postings Abstract: Building on recent OECD work, this paper analyses the skills sets (“skills bundles”) demanded in artificial intelligence (AI)-related online job postings. The analysis uses Burning Glass Technologies’ data for the United States and the United Kingdom and finds that skills related to the open source programming software Python and to machine learning represent “must-haves” for working with AI. Employers additionally value specialised skills related to robotics, AI development and applying AI. A comparison of the periods 2013-15 and 2017-19 shows that the latter two have become more interrelated over time, with “neural network” skills connecting both groups. Network analysis relating AI skills to general skills highlights the growing role of socio-emotional skills; and of skill bundles related to programming, management of big data and data analysis. Key results hold for both countries and time periods, though differences emerge across occupations and industries. Keywords: AI, Online jobs, Skill bundles, Skills Creation-Date: 2021-09-22 Number: 120 Handle: RePEc:oec:stiaac:120-EN Template-type: ReDIF-Paper 1.0 Author-Name: Hélène Dernis Author-Workplace-Name: OECD Author-Name: Laurent Moussiegt Author-Workplace-Name: OECD Author-Name: Daisuke Nawa Author-Workplace-Name: OECD Author-Name: Mariagrazia Squicciarini Author-Workplace-Name: OECD Title: Who develops AI-related innovations, goods and services?: A firm-level analysis Abstract: This study proposes an exploratory analysis of the characteristics of Artificial Intelligence (AI) “actors”. It focuses on entities that deploy AI-related technologies or introduce AI-related goods and services on large international markets. It builds on the OECD Science, Technology and Innovation Micro-data Lab infrastructure, and, in particular, on Intellectual Property (IP) rights data (patents and trademarks) combined with company-level data. Statistics on AI-related patents and trademarks show that AI-related activities are strongly concentrated in some countries, sectors, and actors. Development of AI technologies and/or goods and services is mainly due to start-ups or large incumbents, located in the United States, Japan, Korea, or the People’s Republic of China, and, to a lesser extent, in Europe. A majority of these actors operate in ICT-related sectors. The composition of the IP portfolio of the AI actors indicates that AI is frequently combined with a variety of sector-specific technologies, goods, or services. Creation-Date: 2021-09-22 Number: 121 Handle: RePEc:oec:stiaac:121-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Improving knowledge transfer and collaboration between science and business in Spain Abstract: This study provides an in-depth assessment of Spain’s innovation system and the current state of knowledge transfer and collaboration. It identifies five priority areas for reform and long-term investment that should provide the basis of a new Roadmap. These include granting greater operational autonomy to universities and public research organisations in return for accountability on outcomes, putting in place a better integrated system of incentives that takes both individuals and organisations into account, and ensuring sustained investment in core capabilities to connect science and business. To put these reforms in motion and sustain them over time, a new type of covenant between science and society is needed in Spain today. This should be based on a ‘new deal’ between actors in the science and innovation system and society at large, committing to place the pursuit of concrete social benefits in return for more stable and predictable support. Classification-JEL: O3; O38; I23 Keywords: country study, higher education institutions, innovation, innovation policy, intermediation agents, knowledge transfer, public research organisations, science-business collaboration, universities Creation-Date: 2021-12-16 Number: 122 Handle: RePEc:oec:stiaac:122-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Improving effectiveness of Lithuania’s innovation policy Abstract: This paper concludes the project “Support to Improve Effectiveness of Lithuania’s Innovation Policy” which summarises the findings, policy options and recommended actions. It aimed at providing support to efforts of the Government of Lithuania to better deliver existing policies, and develop and implement appropriate new policies, instruments and institutions in selected areas of science, technology and innovation (STI) policy. The report takes stock of recent policy actions taken since the “OECD Review of Innovation Policy: Lithuania 2016”. Drawing on international good practices it explores the scope for improvement in selected areas of STI policy: a) consolidation of innovation agencies and enhancing Lithuania’s STI Council, b) public procurement of innovation , c) mission-oriented innovation policies, and d) industry 4.0 and artificial intelligence. The project has been aligned with ongoing Lithuanian reform processes, some of which are reflected in the ‘New Generation Lithuania’ plan related to the EU’s Recovery and Resilience Facility. Classification-JEL: O31; O38; L52 Keywords: Artificial intelligence, Governance, Industry 4.0, Innovation policy, Mission-orientation, Public procurement Creation-Date: 2021-12-21 Number: 123 Handle: RePEc:oec:stiaac:123-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mariagrazia Squicciarini Author-Name: Jacopo Staccioli Title: Labour-saving technologies and employment levels: Are robots really making workers redundant? Abstract: This paper exploits natural language processing techniques to detect explicit labour-saving goals in inventive efforts in robotics and assess their relevance for different occupational profiles and the impact on employment levels. The analysis relies on patents published by the European Patent Office between 1978 and 2019 and firm-level data from ORBIS® IP. It investigates innovative actors engaged in labour-saving technologies and their economic environment (identity, location, industry), and identifies technological fields and associated occupations which are particularly exposed to them. Labour-saving patents are concentrated in Japan, the United States, and Italy, and seem to affect low-skilled and blue-collar jobs, along with highly cognitive and specialised professions. A preliminary analysis does not find an appreciable negative effect on employment shares in OECD countries over the past decade, but further research to econometrically investigate the relationship between labour-saving technological developments and employment would be helpful. Creation-Date: 2022-01-14 Number: 124 Handle: RePEc:oec:stiaac:124-EN Template-type: ReDIF-Paper 1.0 Author-Name: Emile Cammeraat Author-Workplace-Name: OECD Author-Name: Antoine Dechezleprêtre Author-Workplace-Name: OECD Author-Name: Guy Lalanne Author-Workplace-Name: OECD Title: Innovation and industrial policies for green hydrogen Abstract: This paper examines the current development of hydrogen technology in the manufacturing sector and the industrial policies enacted to support it across countries. In addition to continued R&D efforts, governments can already lay the ground for the deployment of green hydrogen by implementing five types of policies: 1) supporting R&D and demonstration for green hydrogen to bring down the cost of electrolysers and make them competitive; 2) increasing the supply of renewable electricity; 3) reducing the cost gap between green hydrogen and brown technologies through a comprehensive policy package, such as carbon pricing and the phasing out of inefficient fossil fuel subsidies; 4) reducing uncertainty, for instance by promoting international standardisation, hydrogen infrastructure, and sound regulatory standards; and 5) considering blue hydrogen as a short-term option to facilitate the transition to green hydrogen. Creation-Date: 2022-02-23 Number: 125 Handle: RePEc:oec:stiaac:125-EN Template-type: ReDIF-Paper 1.0 Author-Name: Flavio Calvino Author-Workplace-Name: OECD Author-Name: Stefano DeSantis Author-Workplace-Name: Italian National Institute of Statistics Author-Name: Isabelle Desnoyers-James Author-Workplace-Name: OECD Author-Name: Sara Formai Author-Workplace-Name: Bank of Italy Author-Name: Ilaria Goretti Author-Workplace-Name: OECD Author-Name: Silvia Lombardi Author-Workplace-Name: Italian National Institute of Statistics Author-Name: Francesco Manaresi Author-Workplace-Name: OECD Author-Name: Giulio Perani Author-Workplace-Name: Italian National Institute of Statistics Title: Closing the Italian digital gap: The role of skills, intangibles and policies Abstract: The study identifies the main factors that affect the diffusion of digital technologies and their returns among Italian firms, highlighting the crucial role of public policies. It uses a unique data infrastructure that integrates information on digital technology adoption, firm performance, and workers’ and managers’ skills. The analysis shows that the low digitalisation of Italian firms, especially of SMEs, can be traced back to the low levels of three factors: i) workers’ skills, ii) management capabilities, and iii) accumulation of intangible assets. These factors are also crucial to maximise the effectiveness of public policies supporting firm digitalisation, such as the deployment of broadband infrastructure and fiscal incentives to investments in digital technologies. Finally, the analysis shows that the COVID-19 crisis contributed to further widening the digital gap between Italian firms, favouring ex-ante more digitalised companies, suggesting that public policies play a crucial role for the post-COVID-19 recovery. Creation-Date: 2022-03-15 Number: 126 Handle: RePEc:oec:stiaac:126-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Nicolas Gonne Author-Workplace-Name: OECD Author-Name: Kohei Kitazawa Author-Workplace-Name: OECD Author-Name: Guy Lalanne Author-Workplace-Name: OECD Title: An industrial policy framework for OECD countries: Old debates, new perspectives Abstract: The debate on industrial policy has made a comeback in both academic and policy circles. Yet, no consensus exists on an industrial policy paradigm and the absence of a common reference framework unduly obfuscates the debate – even which interventions are to be considered “industrial policy” is not clear-cut. Against this background, this paper proposes a coherent framework for analysing the formulation of industrial policy, relying on a purposefully broad definition of the latter. Leveraging the proposed framework and a companion paper which synthetises the available empirical evidence, this paper stresses the complementarities between policy instruments, thereby justifying the use of industrial strategies, acknowledges the role of targeted industrial strategies, which can direct technological change and growth, and of demand-side instruments, which can contribute to transformative industrial change, but calls for a stronger emphasis on evaluation and the regular re-assessment of targeted industrial strategies. Classification-JEL: L52; L53; O25; O38; Q58 Keywords: industrial policy, industrial strategies Creation-Date: 2022-05-03 Number: 127 Handle: RePEc:oec:stiaac:127-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chiara Criscuolo Author-Workplace-Name: OECD Author-Name: Nicolas Gonne Author-Workplace-Name: OECD Author-Name: Kohei Kitazawa Author-Workplace-Name: OECD Author-Name: Guy Lalanne Author-Workplace-Name: OECD Title: Are industrial policy instruments effective?: A review of the evidence in OECD countries Abstract: While the case for industrial policy is gaining traction across OECD countries, little consensus exists on the effectiveness of such interventions. Building on a new analytical framework for industrial policy developed in a companion paper, this paper reviews the empirical literature on the effectiveness of industrial policy instruments, laying out the knowns and unknowns. Overall, it strongly supports the premise that well-designed economic incentives for firms and good framework conditions shaping the business environment are effective. At the same time, it emphasises the limited and inconclusive nature of the evidence regarding the increasingly frequent targeted and demand-side instruments. Finally, it underlines the complementarities between economic incentives and other interventions such as skill policies or framework conditions, notably competition and trade policies. Framework conditions are indeed key in enabling the most productive firms to grow and an important channel for structural change. Classification-JEL: L52; L53; O25; O38; Q58 Keywords: industrial policy, public guarantees, public loans, public venture capital, subsidies, tax expenditures Creation-Date: 2022-05-03 Number: 128 Handle: RePEc:oec:stiaac:128-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philippe Larrue Author-Name: Orestas Strauka Title: The contribution of RTOs to socio-economic recovery, resilience and transitions Abstract: This paper analyses the evolution of the funding, governance and policy context of research and technology organisations (RTOs) over the last ten years, and the implications of these changes on their ability to achieve their mission. It shows that their contribution to solving societal challenges is now tightly intertwined with their historical mission of supporting innovation in industry and public administrations. Delivering on this increasingly demanding mission in evolving and sometimes unstable funding frameworks has led them to experiment with new internal organisational structures, business models and partnerships. The paper also draws implications for policy makers who play a key role in setting the environment in which RTOs operate and that determines in part their ability to deliver on the twin imperatives of strengthening economic competitiveness and tackling societal challenges. Classification-JEL: O14; O25; O38; Q55 Keywords: Innovation, Science and technology, Societal challenges Creation-Date: 2022-05-19 Number: 129 Handle: RePEc:oec:stiaac:129-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Integrity and security in the global research ecosystem Abstract: Responsibilities for research integrity and security are distributed across multiple actors in the international research ecosystem. These include, national governments, research funding agencies, research institutions, universities, academic associations, and intergovernmental organisations. This report describes policy initiatives and actions to safeguard national and economic security whilst protecting freedom of enquiry, promoting international research cooperation, and ensuring openness and non-discrimination. It includes examples of actions that are being taking to prevent foreign interference, manage risks, and help ensure trust in science in the future, and offers recommendations to help countries develop effective policies to strengthen research security as part of a broader framework of research integrity. Creation-Date: 2022-06-22 Number: 130 Handle: RePEc:oec:stiaac:130-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laurent Daniel Author-Name: Sunhye Lee Title: Shipbuilding policy and market developments in selected economies 2022 Abstract: The past two decades have seen steady growth in global ship deliveries by countries that are not members of the OECD Council Working Party on Shipbuilding (WP6). Non-WP6 economies made up 47.4% of worldwide deliveries in 2021, mostly driven by the rapid growth of Chinese ship completions that reached a share of 41.1% of global completions. This report presents information on shipbuilding market developments in eleven of the largest non-WP6 shipbuilding economies and provides an overview of their support measures to the sector. Keywords: Industrial policy, Shipbuilding Creation-Date: 2022-07-07 Number: 131 Handle: RePEc:oec:stiaac:131-EN Template-type: ReDIF-Paper 1.0 Author-Name: Laurent Daniel Author-Name: Takuya Adachi Author-Name: Sunhye Lee Title: Shipbuilding market developments, first semester 2022: Monitoring developments in ship supply, demand, prices and costs Abstract: The latest OECD analysis of demand and supply in the shipbuilding industry finds significant excess capacity in the sector. Reducing this excess capacity will depend on the willingness and ability of yards to reduce existing capacity and to refrain from new capital investments. The report also presents a literature review of factors that influence newbuilding ship prices, developments affecting ship prices, and a description of newbuilding prices of major ship types and ship size categories. This report is part of a regular monitoring exercise from the OECD Council Working Party on shipbuilding (WP6) of the global shipbuilding market. Keywords: Cost, Demand, Price, Shipbuilding, Supply Creation-Date: 2022-07-07 Number: 132 Handle: RePEc:oec:stiaac:132-EN Template-type: ReDIF-Paper 1.0 Author-Name: Philippe Larrue Author-Name: Rebecca Santos Title: Towards a new stage in Norway's science, technology and innovation system: Improving the long-term plan for research and higher education Abstract: This study assesses the implementation of the recommendations from the OECD Innovation Policy Review of Norway 2017 along four major themes: (1) Developing research communities of outstanding quality; (2) Enhancing competitiveness and innovation capacity; (3) Tackling major social challenges; and (4) Improving the governance of the science, technology and innovation system. The results of this assessment are then used to identify new opportunities for reforms in the Norwegian Long-term plan for Research and Higher Education 2023-2032. While focused on Norway, the report also provides lessons on key issues, such as the sustainable transition of advanced economies, that can be useful in other national contexts. Creation-Date: 2022-08-02 Number: 133 Handle: RePEc:oec:stiaac:133-EN Template-type: ReDIF-Paper 1.0 Author-Name: Muthu de Silva Author-Workplace-Name: Birkbeck, University of London Author-Name: Nikolas Schmidt Author-Workplace-Name: OECD Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Orlagh Lavelle Author-Workplace-Name: OECD Title: How did COVID-19 shape co-creation?: Insights and policy lessons from international initiatives Abstract: Co-creation – the joint production of innovation between combinations of industry, research, government and civil society – was widely used to respond to COVID-19 challenges. This paper analyses 30 international co-creation initiatives that were implemented to address COVID-19 challenges. Evidence on these initiatives was gathered based on structured interviews with initiative leaders. Existing co-creation networks enabled the rapid emergence of new initiatives to address urgent needs, while digital technologies enabled establishing new – and, where necessary, socially distanced – collaborations. Aside from funding initiatives, governments engaged actively in co-creation by granting access to their networks, advising on initiative goals and offering support to improve quick delivery. The role of civil society was important as well, and the socially impactful nature of research and innovation was a motivating factor for engagement. Harnessing a similarly strong motivation is an important driver of effective future co-creation endeavours also to address the challenges of the green transition. Classification-JEL: O36; O38; I18 Keywords: Civil Society, Digitalisation, Industry-science Linkages, Innovation Creation-Date: 2022-08-19 Number: 134 Handle: RePEc:oec:stiaac:134-EN Template-type: ReDIF-Paper 1.0 Author-Name: Muthu de Silva Author-Workplace-Name: Birkbeck, University of London Author-Name: Orlagh Lavelle Author-Workplace-Name: OECD Author-Name: Nikolas Schmidt Author-Workplace-Name: OECD Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Co-creation during COVID-19: 30 comparative international case studies Abstract: Co-creation – the joint production of innovation between combinations of industry, research, government and civil society – was widely used to respond to the challenges raised by the COVID-19 pandemic. This paper describes 30 COVID-19 co-creation initiatives from 21 countries and three international cases. The template focuses on initiatives’ core characteristics, including information on key co-creation partners and their contributions, key outcomes as well as the initiatives’ size. The comparative evidence gathered through interviews with case study initiative leaders also describes what co-creation instruments were used, how networks leading to the collaboration were built, what type of cross-disciplinary co-operation took place, and what role governments played in the process and the procedures adopted to deal with the COVID-19 “exceptionality”, including the urgency of producing implementable solutions. The information gathered provides a basis for analyses on co-creation initiatives during COVID-19 and for drawing potential policy implications. Classification-JEL: O36; O38; I18 Keywords: Civil Society, Digitalisation, Industry-science Linkages, Innovation Creation-Date: 2022-08-19 Number: 135 Handle: RePEc:oec:stiaac:135-EN Template-type: ReDIF-Paper 1.0 Author-Name: Hunter McGuire Author-Workplace-Name: OECD Author-Name: Caroline Paunov Author-Workplace-Name: OECD Title: Towards a new vision of innovation through COVID-19?: A comparative reading of 11 countries’ strategies Abstract: This paper discusses how countries’ vision for science, technology and innovation (STI) priorities has evolved through COVID-19. The analysis was conducted on a sample of 171 STI strategy documents from 11 countries that were released between 2013 and 2021. Depending on the context, these documents seek to build consensus, manage actors, communicate or signal directions for policy, or achieve internal organisational motives. Most of the documents that have emerged since the COVID-19 crisis focus on a dominant ambitious societal goal and specific technologies to implement that goal. For example, environmental sustainability is a shared goal across different countries’ STI strategies, but its specific meaning differs. Most countries’ STI strategies also identify digitalisation as an important tool to achieve other socio-economic goals. Inclusivity is prominent in agendas reflecting country-specific circumstance. Improving resilience is a shared priority and increased in prominence with the COVID-19 experience. Classification-JEL: D63; I18; Q01; Q55; O38 Keywords: COVID-19, digital transition, digitalization, green transition, inclusivity, innovation, resilience, STI policy, sustainability, technology Creation-Date: 2022-08-25 Number: 136 Handle: RePEc:oec:stiaac:136-EN Template-type: ReDIF-Paper 1.0 Author-Name: Marit Undseth Author-Name: Claire Jolly Title: A new landscape for space applications: Illustrations from Russia’s war of aggression against Ukraine Abstract: For decades, governments have relied on space systems for intelligence gathering and satellite connectivity in remote areas, but today’s situation marks a distinct break with the past. Extended coverage, advances in digital technologies and, importantly, free and/or commercial availability of space products allow many new uses by both government and non-government actors. This brings important benefits for users and citizens, but also leads to new challenges in terms of data management, infrastructure and supply chain resilience, and international co-operation. This paper uses illustrations from the war in Ukraine to highlight recent developments in the sector, placing them in a broader context of digitalisation and government space investments. It discusses the growing importance of space technologies for society and provides policy options and resources from other strains of OECD work. Creation-Date: 2022-11-04 Number: 137 Handle: RePEc:oec:stiaac:137-EN Template-type: ReDIF-Paper 1.0 Author-Name: Tony Clayton Author-Name: Antoine Dechezleprêtre Author-Name: Hélène Dernis Author-Name: Laurence Joly Author-Name: Victoria Magdalinski Author-Name: Laurent Moussiegt Author-Name: Mark Schankerman Title: Enhancing intellectual property use for a stronger innovation ecosystem in Poland Abstract: The paper presents a comprehensive assessment of the strengths and limitations of the intellectual property (IP) system in Poland. It offers policy recommendations to fully exploit the potential of IP to support an innovation-based economy. It finds that the key components of an effective IP strategy in Poland should include the promotion of IP use among economic actors and other stakeholders as well as information campaigns and training programmes to raise awareness and knowledge about the advantages of IP. Recommendations also include reducing barriers to IP use by lowering the costs of and simplifying IP-related procedures, and promoting the valorisation of IP held by universities to enhance technology transfer to the business sector. Creation-Date: 2023-02-09 Number: 138 Handle: RePEc:oec:stiaac:138-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sara Calligaris Author-Name: Outi Jurvanen Author-Name: Auri Lassi Author-Name: Francesco Manaresi Author-Name: Rudy Verlhac Title: The slowdown in Finnish productivity growth: Causes and consequences Abstract: This report analyses the trends in Finnish productivity growth over the 2000s and 2010s. It describes its key features, makes comparisons to a benchmark of 16 OECD countries, and studies the causes of its sudden and prolonged slowdown which began at the end of the 2000s. The analysis focuses on the role of two contemporaneous demand shocks that hit the Finnish economy: the Nokia crisis and the Great Trade Collapse of 2009.Matching detailed firm-based information on structural characteristics of productivity growth with global input-output tables and National Accounts data, the report highlights how the prolonged drop in demand from the domestic computer and electronics sector may have induced a persistent drag on Finnish productivity growth. The report concludes with policy implications to strengthen Finnish resilience to idiosyncratic shocks to key sectors or large firms, while supporting long-term productivity growth and competitiveness. Classification-JEL: E22; E65; O47 Keywords: GVCs, productivity Creation-Date: 2023-02-16 Number: 139 Handle: RePEc:oec:stiaac:139-EN Template-type: ReDIF-Paper 1.0 Author-Name: Karin Gourdon Author-Name: Laurent Daniel Author-Name: Takuya Adachi Author-Name: Emilie Berger Title: New approaches to shipbuilding capacity assessments Abstract: Accurate measurement of shipbuilding capacity is critical to inform market stakeholders of excess capacity issues. This report presents several approaches to improve the estimates of shipbuilding capacity. It shows how the use of average production would allow for smoothening the proxy of capacity in the yard-by-yard production approach. It discusses how firm level indicators, such as productivity, can also be considered. An analysis of productivity developments for a sample of shipbuilding firms shows that their productivity evolves in function of the market situation which, therefore, should be taken into account in the proxies of capacity based on yard production. Finally, the report studies how mergers and acquisitions of shipbuilding firms may impact capacity. Keywords: capacity, mergers and acquisitions, productivity, shipbuiding Creation-Date: 2023-02-16 Number: 140 Handle: RePEc:oec:stiaac:140-EN Template-type: ReDIF-Paper 1.0 Author-Name: Cyrille Schwellnus Author-Name: Antton Haramboure Author-Name: Lea Samek Title: Policies to strengthen the resilience of global value chains: Empirical evidence from the COVID-19 shock Abstract: Widespread supply disruptions in the wake of the COVID-19 pandemic and the Russian Federation’s large-scale aggression against Ukraine have raised concerns among policy makers that globalised value chains expose domestic production to shocks from abroad. This paper uses new indicators of global value chain dependencies and exogenous pandemic shocks to econometrically estimate the effects of supply disruptions abroad on domestic output. The results suggest that the adverse effects of supply disruptions are particularly large when concentration of supplying countries and supplying firms is high. Counterfactual simulations of the econometric model suggest that diversification of suppliers would have sizeable benefits in terms of shielding domestic production against country-specific supply shocks, with partial onshoring of production having only small additional benefits. Technological innovation that reduces foreign dependencies, such as the substitution of renewable energies for fossil fuels, can have similar benefits as diversification. Classification-JEL: F14; F68; L52 Keywords: global value chains, international trade, resiliance Creation-Date: 2023-02-21 Number: 141 Handle: RePEc:oec:stiaac:141-EN Template-type: ReDIF-Paper 1.0 Author-Name: Cyrille Schwellnus Author-Name: Antton Haramboure Author-Name: Lea Samek Author-Name: Ricardo Chiapin Pechansky Author-Name: Charles Cadestin Title: Global value chain dependencies under the magnifying glass Abstract: Policy makers are increasingly grappling with the stability implications of global value chains (GVCs), as widespread supply shortages following the COVID-19 pandemic and the Russian Federation’s large-scale aggression against Ukraine have disrupted the economic recovery and contributed to high inflation. This paper provides a tool to assess vulnerabilities in GVCs by drawing a detailed map of dependencies based on new indicators constructed from the OECD Inter-Country Input-Output tables. The key findings are as follows. First, GVC dependencies increase with both the size of foreign exposures and the length of foreign value chains. Second, in some industries, such as the automotive and ICT industries, vulnerabilities from high GVC dependence are amplified by high geographic concentration of suppliers or buyers. Third, the People’s Republic of China is the most critical choke point in GVCs across a broad range of industries, both as a dominant supplier and as a dominant buyer. Classification-JEL: F14; F68; L52 Keywords: global value chains, international trade, resilience Creation-Date: 2023-03-01 Number: 142 Handle: RePEc:oec:stiaac:142-EN Template-type: ReDIF-Paper 1.0 Author-Name: Mario Cervantes Author-Name: Chiara Criscuolo Author-Name: Antoine Dechezleprêtre Author-Name: Dirk Pilat Title: Driving low-carbon innovations for climate neutrality Abstract: The transition to climate neutrality requires cost reductions in existing clean technologies to enable rapid deployment on a large scale, as well as the development of emerging technologies such as green hydrogen. This policy paper argues that science, technology, innovation, and industrial (STI&I) policies focusing on developing and deploying low-carbon technologies are crucial to achieving carbon neutrality. It notes however that the current level of innovation is insufficient to meet the net-zero challenge due to a policy emphasis on deployment rather than research and development (R&D) support. The paper explores the rationale for more ambitious STI&I policies targeted at R&D for climate neutrality and provides policy recommendations for an effective innovation policy for net-zero, including its interaction with the broader climate policy package. Classification-JEL: O38; Q54; Q55; Q58 Keywords: climate change mitigation, innovation policy, low-carbon innovation, technological change Creation-Date: 2023-03-01 Number: 143 Handle: RePEc:oec:stiaac:143-EN Template-type: ReDIF-Paper 1.0 Author-Name: Antoine Dechezleprêtre Author-Name: Luis Díaz Author-Name: Milenko Fadic Author-Name: Guy Lalanne Title: How the green and digital transitions are reshaping the automotive ecosystem Abstract: The automotive sector is important across OECD countries in terms of value-added and R&D, but is also heavily affected by the green and the digital transformations. This paper offers a novel and holistic view of the automotive sector and its surrounding ecosystem based on a combination of Inter-Country Input-Output (ICIO) tables, patent data, mergers and acquisitions (M&A) transactions, cross-country micro-distributed data and firm-level balance sheet data. It identifies the boundaries of this industrial ecosystem including connected sectors (e.g. upstream and downstream) as well as knowledge and technology providers (e.g. universities or the digital industry). The paper documents emerging trends at the geographical and technological levels and provides a comprehensive assessment of the ecosystem’s changing microstructure, with a growing role of young and digital-intensive companies. Finally, it provides recommendations for effective public policies to support the automotive ecosystem, with a focus on innovation, competition and the growth of young firms. Classification-JEL: L62; O25; L50; O38; Q58 Keywords: automotive, autonomous vehicles, decarbonisation, industrial ecosystems, industrial policy Creation-Date: 2023-03-01 Number: 144 Handle: RePEc:oec:stiaac:144-EN Template-type: ReDIF-Paper 1.0 Author-Name: Hermann Garden Title: Collaborative mechanisms for sustainable health innovation: The case of vaccines and antibiotics Abstract: The provision of key health technologies and products such as vaccines and antibiotics is insufficient in purely competitive and volume-based markets, requiring new revenue streams for sustainability. Recent developments in health innovation suggest that innovative collaborative mechanisms can be effective in addressing this issue. In the domains of vaccines and antibiotics, these approaches should incorporate shared research investment, long-term access planning, the provision of manufacturing infrastructure, supply chains, and financial returns. Collaborative approaches such as subscription models could be piloted at the regional level, while other models could be developed to delink innovation, manufacturing, and access from sales volume and revenue. Finally, blended finance instruments from the development field could encourage greater collaboration among established and emerging stakeholders in health innovation. These stakeholders should work together to create, test, access, and implement more collaborative approaches to health innovation to share upfront investments, mitigate risks of failure, and accelerate market access. Keywords: antibiotics, blended finance, collaborative platforms, health innovation, public-private partnerships, vaccines Creation-Date: 2023-03-10 Number: 145 Handle: RePEc:oec:stiaac:145-EN Template-type: ReDIF-Paper 1.0 Author-Name: Douglas K. R. Robinson Author-Name: David Winickoff Author-Name: Laura Kreiling Title: Technology assessment for emerging technology: Meeting new demands for strategic intelligence Abstract: The rapid pace of technological change, coupled with a pressing need for solutions to address grand societal challenges and global crises, heightens the challenge for policy makers to develop science, technology and innovation policies at speed, in situations of high uncertainty and, in some cases, around potentially controversial technology fields. Technology assessment (TA) has a long history of providing decision-makers with timely strategic intelligence on emerging technologies. Current demands are pushing TA to evolve in order to fulfil diverse functions: to illuminate the societal, economic, environmental and other consequences of new technologies; to inform public opinion; and to guide research and development. Drawing on nine case studies, this report analyses the response of TA practices to these changing drivers and demands to support policies for new and emerging technologies. It also identifies a set of principles to guide good contemporary TA practice. Keywords: anticipatory governance, emerging technologies, responsive research and innovation, strategic intelligence, technology assessment, technology futures Creation-Date: 2023-04-26 Number: 146 Handle: RePEc:oec:stiaac:146-EN Template-type: ReDIF-Paper 1.0 Author-Name: Fabien Mercier Author-Name: Luciano Giua Title: Subsidies to the steel industry: Insights from the OECD data collection Abstract: This report analyses subsidies provided to steel producers by examining firm-level data from the Organisation for Economic Co-operation and Development (OECD) and conducting desk research. It reveals that subsidy trends persist even in the face of existing overcapacity. Between 2008 and 2020, steel companies in partner economies obtained an average of 10.7 times more subsidies per crude steel production capacity unit than their counterparts in OECD countries. These subsidies took the form of cash grants, cash awards, and cost reimbursements. The report also finds that the national context significantly influences a jurisdiction's inclination to support its steel sector and the transparency of such subsidies. Some jurisdictions have prioritised the growth of their domestic steel industry by establishing firm goals for crude steel production, export, or concentration. Meanwhile, others have engaged in international collaboration to address global challenges related to the decarbonisation of the steel industry. Creation-Date: 2023-04-26 Number: 147 Handle: RePEc:oec:stiaac:147-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Public research funding in Sweden: Optimising the system in response to multiple demands Abstract: This report provides input to a national review of the public research funding system in Sweden. It is designed to inform a broader dialogue that is taking place amongst different research stakeholders in Sweden. The report contains proposals and options for changes for Swedish public funding of research and innovation to effectively promote research excellence, support innovation and respond to societal needs. These proposals are supported by relevant international examples. The analysis takes into account insights from the OECD review of innovation policy in Sweden in 2016 and recent OECD work on different aspects of public research funding and research infrastructure. Creation-Date: 2023-05-24 Number: 148 Handle: RePEc:oec:stiaac:148-EN Template-type: ReDIF-Paper 1.0 Author-Name: Caroline Paunov Author-Name: Sandra Planes-Satorra Title: Engaging citizens in innovation policy: Why, when and how? Abstract: Innovation policies need to be socially embedded for them to effectively contribute to addressing major societal challenges. Engaging citizens in innovation policymaking can help define long-term policy priorities, enhance the quality and legitimacy of policy decisions, and increase the visibility of innovation in society. However, engaging all groups in society and effectively integrating citizens' inputs in policy processes is challenging. This paper discusses why, when and how to engage citizens in innovation policy making. It also addresses practical considerations for organising these processes, such as reaching out to diverse publics and selecting the optimal mix of methods and tools. Creation-Date: 2023-06-19 Number: 149 Handle: RePEc:oec:stiaac:149-EN Template-type: ReDIF-Paper 1.0 Author-Name: Chiara Criscuolo Author-Name: Luis Díaz Author-Name: Guy Lalanne Author-Name: Louise Guillouet Author-Name: Charles-Édouard van de Put Author-Name: Camilla Weder Author-Name: Hadas Zazon Deutsch Title: Quantifying industrial strategies across nine OECD countries Abstract: Industrial policy has resurfaced prominently in academic and policy discussions in the wake of major shocks and long-term trends. However, quantifying industrial strategies across countries remains difficult. The ‘Quantifying Industrial Strategies’ (QuIS) project measures industrial policy expenditures by gathering and harmonising publicly available data, based on a new methodology. This report summarises the composition of industrial strategies in the first nine participating countries in terms of expenditures, priorities, and policy instruments for the period 2019-21. The report finds that industrial policies are sizeable, with 1.5% of GDP in grants and tax expenditures, and with an important heterogeneity across countries in terms of strategic priorities; industrial strategies mainly rely on sectoral instruments, representing on average 29% of grants and tax expenditures; and green instruments are important and rose significantly in six out of nine countries between 2019 and 2021. Creation-Date: 2023-06-19 Number: 150 Handle: RePEc:oec:stiaac:150-EN Template-type: ReDIF-Paper 1.0 Author-Name: Frida Aulie Author-Name: Antoine Dechezleprêtre Author-Name: Fernando Galindo-Rueda Author-Name: Clara Kögel Author-Name: Inès Pitavy Author-Name: Alzbeta Vitkova Title: Did COVID-19 accelerate the green transition?: An international assessment of fiscal spending measures to support low-carbon technologies Abstract: Fiscal spending policies adopted in the wake of the COVID-19 pandemic have been presented as a unique opportunity to “build back better” and re-ignite the economy while accelerating the transition to a low-carbon economy. This paper analyses 1 166 funding measures announced by 51 countries and the European Union in 2020-21 to support development and diffusion of low-carbon technologies. These measures – amounting to USD 1.29 trillion – can make an important contribution to filling the climate investment gap, particularly in emerging technologies such as carbon capture, usage and storage and green hydrogen. A modelling analysis suggests that they could have large impacts on greenhouse gas emissions and bring about significant co-benefits in terms of clean sectors’ output growth and reductions in fossil fuel imports. Classification-JEL: L52; O38; Q54; Q55; Q58 Creation-Date: 2023-06-27 Number: 151 Handle: RePEc:oec:stiaac:151-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: COVID-19 and policy for science Abstract: This is the first in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The focus is on policy for science – access to data and information, the role of infrastructures and the interface between academia and industry. The report includes recommendations and options for policy action to improve the resilience of national science systems and their capacity to co-operate internationally in response to crises. The context in each country is different, as illustrated by the many case studies included in the report, and so the priority attached to these recommendations and the specific details of how they might be implemented will vary. They are provided as an overall framework for science policymakers and other actors, including research funders and research providers, to consider. Creation-Date: 2023-07-03 Number: 152 Handle: RePEc:oec:stiaac:152-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Very Large Research Infrastructures: Policy issues and options Abstract: Very Large Research Infrastructures (VLRIs) are unique, complex undertakings with a strong international dimension that play a critical role in frontier research in most scientific domains. VLRIs require considerable care in their construction and operation, as well as very substantial investments and technological innovations. Recent evolutions in the political, socio-economic and scientific context are challenging their established planning and management models. This policy report identifies and analyses good practices and presents a series of lessons learned regarding the establishment of VLRIs, options for improving their use and operation, as well as more strategic considerations that VLRI managers, funders and decision-makers should take into consideration. Creation-Date: 2023-07-05 Number: 153 Handle: RePEc:oec:stiaac:153-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: COVID-19 and science for policy and society Abstract: This is the second in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The focus is on science for policy – research agenda setting, scientific advice and public communication and engagement. The report includes recommendations and options for policy action to improve the resilience of national science systems and their capacity to cooperate internationally in response to crises. The context in each country is different, as illustrated by the many case studies included in the report, and so the priority attached to these recommendations and the specific details of how they might be implemented will vary. They are provided as an overall framework for science policymakers and other actors, including research funders and research providers, to consider. Creation-Date: 2023-07-18 Number: 154 Handle: RePEc:oec:stiaac:154-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: COVID-19, resilience and the interface between science, policy and society Abstract: This is the last in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The report focuses on system-level issues and highlights challenges and opportunities that are inherent to the organisation of science systems and that need to be addressed to improve the resilience of these systems and their capacity to address complex societal challenges and crises. The analysis is structured around five interconnected themes: the strategic mobilisation of science capacity; managing conflicting priorities; co-ordination and collaboration across levels of governance; transdisciplinary and reflexive science; and dynamic and system-oriented governance. Key areas for intervention and more specific policy actions are identified under each theme and provide a framework for systemic action to strengthen science in support of socio-technological transitions. Creation-Date: 2023-07-18 Number: 155 Handle: RePEc:oec:stiaac:155-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sylvia Schwaag Serger Author-Name: Bernhard Dachs Author-Name: Paula Kivimaa Author-Name: David Lazarevic Author-Name: Jani Lukkarinen Author-Name: Lennart Stenberg Author-Name: Matthias Weber Title: Transformative innovation policy in practice in Austria, Finland and Sweden: What do the Recovery and Resilience Plans tell us about linking transformation and innovation policy? Abstract: Governments are increasingly utilising research and innovation (R&I) policy to foster economic and societal change. Yet, the empirical correlation between these policies and socio-technical transformations remains under-explored. The report investigates this relationship by comparing the Recovery and Resilience Plans (RRPs) of Austria, Finland and Sweden, initiated under the NextGenerationEU framework post Covid-19. The report finds significant disparities in the content, process and transformative value of the RRPs among these countries. The differences in the content of the national RRPs, and the ability and willingness to seize the opportunity presented by the RRPs to drive transformation, are explained by existing national policy contexts and frameworks. Surprisingly, the role of R&I policy in the RRPs is less important than expected, despite its emphasised importance in literature and political rhetoric. The report further identifies implications for a transformative innovation policy as well as areas for further research. Creation-Date: 2023-07-24 Number: 156 Handle: RePEc:oec:stiaac:156-EN Template-type: ReDIF-Paper 1.0 Author-Name: Sara Calligaris Author-Name: Flavio Calvino Author-Name: Rudy Verlhac Author-Name: Martin Reinhard Title: Is there a trade-off between productivity and employment?: A cross-country micro-to-macro study Abstract: The impact of productivity on employment remains uncertain, particularly in light of growing concerns regarding potential negative effects of technological progress on labour demand. This report uses harmonised and comparable data from 13 countries spanning the last two decades to comprehensively analyse how productivity growth affects employment dynamics at various levels of aggregation. The study's findings highlight a positive correlation between productivity growth and employment as well as wage growth, both at the firm level and on a broader scale. This outcome arises from counteracting mechanisms and heterogeneous dynamics across different groups of firms. The findings have relevant policy implications: productivity is not just an isolated key economic objective, but well-designed and complementary policies can also help convert technological and organisational change into higher employment and wage growth. Classification-JEL: J23; O30; O33 Creation-Date: 2023-08-09 Number: 157 Handle: RePEc:oec:stiaac:157-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Promoting diverse career pathways for doctoral and postdoctoral researchers Abstract: This report analyses the career options of doctoral and postdoctoral researchers. It identifies policies and practices to promote diverse careers, flexible career trajectories and ultimately better-quality research and innovation across different economic and social sectors. The report presents a conceptual framework and synthesis of available data and policy information. It offers recommendations and a set of policy options to: promote engagement and interaction with employers outside academia; provide researchers with experience and skills for diverse careers; encourage valorisation of diverse career options; support career development and guidance for researchers; promote inter-sectoral mobility; and, reconfigure and support careers in academia. Creation-Date: 2023-09-01 Number: 158 Handle: RePEc:oec:stiaac:158-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The Impact of R&D tax incentives: Results from the OECD microBeRD+ project Abstract: This document reports on the final output of the OECD microBeRD+ project. Drawing on the outcomes of previous work, this study presents new evidence on the impact of business R&D support policies – tax incentives and direct forms of support – on business R&D investment (R&D input additionality) and the innovation and economic performance of firms (R&D output additionality). The report also provides an exploratory analysis of R&D spillovers. Classification-JEL: H25; O38; L25 Creation-Date: 2023-10-09 Number: 159 Handle: RePEc:oec:stiaac:159-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: OECD framework for mapping and quantifying government support for business innovation Abstract: This paper resents a measurement framework aiming to support the collection of comprehensive and internationally comparable quantitative and qualitative information on governmental innovation support programmes and instruments. It proposes a taxonomic system with definitions, classifications and reporting conventions aligned with OECD and other international standards. The framework is intended to support future OECD measurement efforts in this area and the analysis of innovation support portfolios within and across countries. Classification-JEL: H50; H60; O30; H25 Keywords: Business, Innovation, Public support, R&D, technology Creation-Date: 2023-11-20 Number: 160 Handle: RePEc:oec:stiaac:160-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Income-based tax relief for R&D and innovation: An integrated view Abstract: This document provides an integrated view on income-based tax incentives for R&D and innovation. It brings together the latest evidence on the adoption, design, generosity, cost and take-up of income-based tax incentives, and gives new insights into both the long-term and short-term trends in the take-up of income-based tax incentives by business and their cost to governments, including role of policy design changes. Furthermore, the report explores the scope for developing indicators that provide a more complete picture of the value of expenditure- and income-based tax relief for R&D and innovation in the OECD area and beyond. Classification-JEL: H25; O38; O34 Keywords: innovation, Research and development, tax incentives Creation-Date: 2023-11-24 Number: 161 Handle: RePEc:oec:stiaac:161-EN Template-type: ReDIF-Paper 1.0 Author-Name: Erik Arnold Author-Name: Caroline Paunov Author-Name: Sandra Planes-Satorra Author-Name: Sylvia Schwaag Serger Author-Name: Luke Mackle Title: Navigating green and digital transitions: Five imperatives for effective STI policy Abstract: This paper discusses five innovation policy imperatives critical to achieving green and digital transitions: coordinated government, stakeholder engagement, policy agility and experimentation, directionality and support for breakthrough innovation. The paper provides policy examples from Germany, based on the OECD Review of Innovation Policy: Germany, and other countries to illustrate in what ways countries have addressed these imperatives. Overall, the quality and scale of these policy responses need to increase if transitions are to succeed. Open questions for future policy research are also highlighted. Classification-JEL: O31; O33; O38 Keywords: agile policy, breakthrough innovation, country policy examples, digital transformation, digital transition, directionality, Germany, governance, green transition, innovation policy, policy experimentation, stakeholder engagement, STI policy Creation-Date: 2023-11-30 Number: 162 Handle: RePEc:oec:stiaac:162-EN Template-type: ReDIF-Paper 1.0 Author-Name: Muthu de Silva Author-Name: Caroline Paunov Author-Workplace-Name: OECD Author-Name: Sandra Planes-Satorra Author-Name: Patricia Peñalosa Title: Unlocking co-creation for green innovation: An exploration of the diverse contributions of universities Abstract: In the context of the green transition, universities have much to offer in joint green innovation projects with business, government and citizens. As hubs of diverse expertise, universities are uniquely placed to build interdisciplinary teams and bridge gaps between society and industry. Their regional ties also enable them to engage with the local ecosystem. This paper draws from ten international case studies of university partnerships with industry and society in green mobility, green energy and green products, services and processes. The comparative evidence gathered from interviews with representatives from these initiatives examines universities’ practices for green co-creation. Additionally, the paper outlines policy recommendations crucial to supporting these initiatives, essential for the global success of sustainable development efforts. Classification-JEL: O30; O36; O38 Keywords: civil society, co-creation, Green transition, Industry-science linkages, Innovation, Innovation policy, STI policy, universities Creation-Date: 2023-12-04 Number: 163 Handle: RePEc:oec:stiaac:163-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: OECD Agenda for Transformative Science, Technology and Innovation Policies Abstract: Multiple crises are triggering turbulence, instability and insecurity in contemporary societies, with impacts on economies, the environment, politics, and global affairs. An effective response will require governments to be more ambitious and act with greater urgency in their science, technology and innovation (STI) policies to meet global challenges. Sustained investments and greater directionality in research and innovation activities are needed, and these should coincide with a reappraisal of STI systems and STI policies to ensure they are “fit-for-purpose” to contribute to transformative change agendas. This policy paper provides a framework to support governments in making these assessments. It identifies six STI policy orientations for transformative change that should guide these assessments. It applies these orientations across multiple areas of STI policy, including R&D funding, the research and innovation workforce, and international R&D co-operation, and outlines a series of concrete policy actions STI policymakers can take to accelerate transformative change. Creation-Date: 2024-04-24 Number: 164 Handle: RePEc:oec:stiaac:164-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Framework for Anticipatory Governance of Emerging Technologies Abstract: Emerging technologies can contribute to unprecedented gains in health, energy, climate, food systems, and biodiversity. However, these technologies and their convergence sometimes carry risks to privacy, security, equity and human rights. This dual-edged nature of emerging technology requires policies that better anticipate disruptions and enable technology development for economic prosperity, resilience, security and sustainable development. Drawing on prior OECD work and legal instruments, this framework equips governments, other innovation actors and societies to anticipate and get ahead of governance challenges, and build longer-term capacities to shape innovation more effectively. Its “anticipatory technology governance” approach consists of five interdependent elements and associated governance tools: (1) embeding values throughout the innovation process; (2) enhancing foresight and technology assessment; (3) engaging stakeholders and society; (4) building regulation that is agile and adaptive; and (5) reinforcing international cooperation in science and norm-making. The emerging technology context determines how each of these elements is applied. Keywords: anticipation, citizen engagement, Emerging Technologies, foresight, Governance Creation-Date: 2024-04-24 Number: 165 Handle: RePEc:oec:stiaac:165-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Space economy investment trends: OECD insights for attracting high-quality funding Abstract: Over the last decade, the space economy has seen significant shifts, welcoming new entrants and types of capital. Annual launch activity has increased, in large part thanks to the influx of private investment. This raises questions about the future development of the sector. Drawing on OECD insights within science, technology, and innovation, this policy paper examines public and private investment trends in the space economy and discusses how public policy decisions and instruments can contribute to attracting more and higher-quality private investment. Classification-JEL: L26; O14; O31; O38 Keywords: industrial policy, innovation, Science and technology, space economy Creation-Date: 2024-04-26 Number: 166 Handle: RePEc:oec:stiaac:166-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: The quantitative impacts of subsidies on steel firms: An econometric analysis of the impact of subsidies on steel firms’ financial performance and crude steelmaking capacity Abstract: Non-OECD economies are using seven times more grants per unit of steelmaking capacity for their steel industry than OECD countries in 2021, and increased tenfold the amount of grants per unit of capacity while tripling amounts of below-market borrowings from 2005 to 2021. Identical subsidies can have very different impacts on recipient firms’ performance and capacity depending on whether they operate in an OECD country or not: grants provided to steel firms in non-OECD economies are associated with large capacity expansions, with each additional USD 1 million in grants correlated with capacity increases of about 7 000 to 11 000 metric tonnes, whereas no significant impact was found for OECD countries. This may be due to different subsidisation programme frameworks and different degrees of enforceability of subsidy use. This emphasises the need for dialogue in global fora on best practices on subsidy frameworks to address the most distortive subsidies urgently. Keywords: Excess capacity, Financial records, Firm-level database, Government programme, Government support, Steel, Subsidies Creation-Date: 2024-11-12 Number: 167 Handle: RePEc:oec:stiaac:167-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Designing Effective Governance to Enable Mission Success Abstract: Mission-oriented innovation policies (MOIPs) offer a strategic approach to address complex societal challenges like climate change, health crises, and digital transformation. For MOIPs to succeed, tailored governance structures are essential, enabling coordination across sectors and policy areas. This policy paper identifies key governance challenges, such as overcoming institutional silos, integrating funding streams, and managing trade-offs in leadership. It highlights the need for adaptive, flexible governance mechanisms that evolve alongside the mission's life cycle. The paper proposes a framework of five core governance principles: structure, orientation, coordination, implementation, and resources. By following this framework, policymakers can design effective governance systems that align with the mission's theory of change, ultimately enhancing the transformative potential of MOIPs. The recommendations emphasise viewing mission governance as a critical enabler, fostering collaborative and impact-oriented policymaking to tackle complex issues. Classification-JEL: H11; O33; O38; Q54; I18 Keywords: Collaboration, Governance structures, Mission-oriented policies, missions, Sustainability, Systemic change Creation-Date: 2024-12-06 Number: 168 Handle: RePEc:oec:stiaac:168-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Circular economy policies for steel decarbonisation Abstract: Circular economy strategies in the steel industry hold significant potential for reducing emissions by lowering demand and promoting secondary, low-emission steelmaking processes. Extending the “4R” framework—Reduce, Reuse, Remanufacture, and Recycle—could lead to a 20% reduction in global steel-related emissions by 2050 and relieve pressures on scrap markets that currently face regional imbalances and export restrictions. However, implementing these approaches is challenging due to limited policy focus on steel-specific circularity, quality issues in recycled materials and insufficient infrastructure for scrap management. Therefore, developing targeted policies that integrate circular economy principles in both upstream and downstream steel sectors is essential. Additionally, advanced technologies like blockchain and AI could support traceability and efficiency in scrap collection, boosting circularity and aligning with broader decarbonisation goals. Keywords: 4R framework, AI, Artificial Intelligence, Blockchain, Circular economy, Circularity, Decarbonisation, Digitalisation, Recycle, Reduce, Remanufacture, Reuse, Steel, Trade Creation-Date: 2024-12-06 Number: 169 Handle: RePEc:oec:stiaac:169-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Unlocking potential in the global scrap steel market: Opportunities and challenges Abstract: Projections indicate that scrap use should rise to 45-50% of steel production by 2050 to meet climate targets. However, the availability of scrap varies widely across regions, driven by differences in industrial maturity and recycling infrastructure. International trade plays an essential role in meeting the demand for steel scrap in domestic recycling markets. Yet, there are significant export restrictions in some economies, which account for the largest scrap supplies globally. As secondary steel production through electric-arc furnaces grows, particularly in high-income countries, it is essential to expand the collection, processing and trade of scrap metal. Policies that encourage open trade and investment in digital tools to improve tracking and quality control are critical to ensuring adequate scrap availability for low-carbon steel production globally. Keywords: Decarbonisation, Export restrictions, Metals, Raw materials, Recycling, Scrap, Steel, Trade Creation-Date: 2024-12-06 Number: 170 Handle: RePEc:oec:stiaac:170-EN Template-type: ReDIF-Paper 1.0 Author-Name: OECD Title: Addressing steel decarbonisation challenges for industry and policy Abstract: The steel industry is at the forefront of decarbonisation, with over 90% of steelmaking capacity located in countries committed to net-zero targets. Most major steel producers have established ambitious decarbonisation goals, with two-thirds targeting net-zero emissions and many adopting Scope 1 and Scope 2 targets alongside detailed decarbonisation roadmaps. However, the comprehensiveness of these plans varies, with some lacking clear timelines for necessary investments and technologies. Decarbonising the steel sector presents interconnected challenges, including scaling up technologies, securing resources, ensuring investments, creating markets for low-carbon steel and phasing out emission-intensive plants. Many low carbon breakthrough technologies remain uncommercialised, while the higher cost of low-carbon steel requires a price premium. Effective decarbonisation requires policies that address these challenges, including closing infrastructure gaps, supporting innovation and fostering demand for low-carbon steel. Moreover, policies must enable the closure of emission-intensive facilities while managing the transition to low-carbon steelmaking and mitigating risks of exacerbating excess capacity. Keywords: Breakthrough technologies, Corporate strategies, Decarbonisation, Decarbonisation policy, Net-zero, Steel, Transition planning Creation-Date: 2024-12-17 Number: 171 Handle: RePEc:oec:stiaac:171-EN