1 how to build a knowledge economy and how to know when you have one john dryden deputy director...

1

How to Build a Knowledge Economy and How to Know When

You Have One

John DrydenDeputy Director

Directorate for Science, Technology and Industry, OECD

MEASURING AND FOSTERING THE PROGRESS OF SOCIETIES

Second OECD World Forum on "Statistics, Knowledge and Policy"

Istanbul, Turkey, 27-30 June 2007

2

What is a Knowledge Economy?

Related concepts The New Economy The Information Economy (bio-economy, etc.,) The Service Economy The Innovation Economy The Knowledge-based Economy

3

Characteristics of a Knowledge Economy

High value-added goods and services mainly because of the “knowledge content” of their factor inputs

Performance of R&D High educational standards, human resources in S&T,

workforce skills Strong innovation performance, innovations successful in the

market Intensive and broad use of generic technologies, esp. ICTs Strong “high-tech” sectors, intensive use of “knowledge-

intensive services” Value chains highly globalised Investment in “knowledge” now about the same as that in fixed

capital (~8pc of GDP)

4

How to Build One?

Copy the Lisbon Agenda? Research and Development – inputs, outputs and outcomes Human Resources – education, skills, mobility Innovation and linkages between the “actors”; “open innovation” Encourage (production and) use of generic technologies Framework conditions – open markets, absorptive capacity;

attention to the demand side Open-ness and globalisation – knowledge flows and the global

enterprise

5

How to Know When You’ve Got One? Hard to measure, as the concept isn’t tightly defined. It’s the results in terms of growth, incomes,

productivity and employment – and other measures of well-being that take account of social and environmental “wealth” – that count

Measures of international “competitiveness” Doubts about utility of composite “knowledge

economy index” Need to take account of scope (intl, natl, regional,

local); and aggregation (whole economy, sector, firm) Need data and analytical toolkit to develop battery of

indicators in main issue areas

6

The OECDSTI Scoreboard

Published every other year,in print and online

Over 200 internationally comparable indicators

Free access on-line edition with Statlinks: direct URL links to underlying Excel sheets used in the graphs.

STI Scoreboard 2005 available at:

www.sourceoecd.org/scoreboard

Multilingual summaries: www.oecd.org/sti/scoreboard

7

STI Scoreboard 2007 Forthcoming in October

Comprehensive coverage of the different facets of the knowledge economy in 9 sections:

R&D and investment in knowledge Human resources in S&T Innovation policy Innovation performance ICT: an enabler for the knowledge society Particular fields Internationalisation of S&T Global economic flows Trade and productivity

8

New in the 2007 Scoreboard

90 families of indicators, over 200 figures

Around 25% of new indicators compared to 2005 edition. Examples:– S&T indicators in biotech, nanotech and

environmental technologies– Patenting by universities, patenting by regions,

science linkages in technology– Employment by skills and earnings by level of skills– International outsourcing of intermediary inputs

New multi-colour double-page layout for easy readability

9

Investment in Knowledge

The knowledge economy is about more than R&D

OECD economies taken together, invested 5% of GDP in knowledge in 2003. In US, close to half of this investment concerns software and higher

education, whereas in EU countries the main component is R&D investment.

R&D, Software and Higher Education as a percentage of GDP (2003)

10

R&D Intensity as a percentage of GDP (2005)

China is now one of the major players in the global knowledge economy

In 2005, China stood just behind the Triadic countries in terms of share of R&D in total R&D; R&D investment represents 15% in total OECD R&D.

11

OECD output of university and doctoral degrees

39

43

50

57

31

22

27

20 24

14

14

20

11910

8

Total university degrees

S&E university degrees

Doctorate degrees

S&E doctorate degrees

EU19

United States

Other

Japan

% of all OECD graduates receiving their degrees by region of graduation and field of study, 2004

European universities are a main source of science and engineering degrees in the world

43% of total OECD university degrees originate in Europe, compared to only 22% for the United States.

12

Employment by Foreign Multinationals

Trends in the share of affiliates under foreign control in manufacturing employment in selected OECD countries between 1995 and 2003

Employment by foreign affiliates increased in France but decreased in the United States, Germany and Italy.

13

Labour productivity growth

Business services are a main catalyst of productivity in numerous OECD countries In Canada, Greece, New Zealand, the United Kingdom and the United States, it

contributed to over 55% of the labour productivity growth.

Contributions of key activities to annual growth of value added per person employed 2000 - 2005

14

Broadband Access by households

Households with broadband access a percentage of all households (2003-06)

Growing adoption by consumers but remaining divergences across countries

In 2006, Korea remained the country with the largest share of households with a broadband connection via a computer or mobile phone (94%).

15

Patenting by UniversitiesShare of patents filed owned by universities 2002-04 in total

inventions

Intellectual property policies for university innovation is giving results in the EU

In 2002-04, more than 10% of patents applied by US residents are owned by public institutions, whereas in Europe (25), this share was around 4%.

With respect to 1996-98, EU (25) doubled the share of patents owned by universities whereas US has decreased it slightly.

16

Biotechnology firms’ activitiesPercentage of biotechnology firms active by field of application (2003)

Predominance of health-related applications in biotechnology

The majority of firms are active in health (45%), followed by agro-food (22%), industry-environmental applications (19%), and “other” (18%).

17

Nanotechnology PatentingWorldwide total number of nanotechnology patents by application fields

Nanotechnologies have the potential to generate diverse industrial applications

Nanotechnology is multifaceted. It consists of a set of technologies on the nanometre scale rather than a single technological field.

18

The next edition of the STI Scoreboard will appear in October 2007

john.dryden@oecd.org

sti.contact@oecd.org