This publication is the culmination of work undertaken by the OECD’s Working Party on Research Institutions and Human Resources (RIHR) over 2009-10 on the transformation of public research institutions (PRIs). It provides a rich source of information on the changes and trends experienced by PRIs in recent years, which can be used by governments to enhance debate and inform policy making. The publication brings together extensive material provided by countries participating in the RIHR group, including “country context” notes, institutional case studies and a survey of institutes, as well as national-level data on PRIs. This material provides new insights into PRIs’ orientations, organisational and institutional arrangements, funding, human resources and internationalisation.

Public research institutions (PRIs) are one of the two main actors in the public research system and are a primary tool for governments seeking to spur research and innovation in their economies. PRIs remain critical for countries’ innovation and economic performance through their activities in creating, discovering, using and diffusing knowledge. Their structures, functions and performance are diverse across countries, and their activities vary according to their mission and type. Some perform “blue sky” research, while others focus on more short-term market oriented projects. Other roles can include education and training, technology transfer, the provision of major scientific infrastructure, and the support of public policy. Their activities can help firms to expand their capabilities and generate spillovers for the wider economy.

Public research institutions (PRIs) are one of the two main actors in the public research system, and continue to play numerous roles in innovation systems. Their structures, function and performance are diverse and their activities vary widely according to their mission and type. This report will present new data and evidence on PRIs, drawing on extensive material supplied by OECD member and observer countries. It aims to enhance the level of policy debate and provide input into future policy making.

National-level data on PRIs provide a “big picture” view of how these entities have transformed over time. This chapter presents data related to the Frascati Manual-defined government sector, as well as the results of a data re-tabulation that included PRI-like entities from other sectors. The data show the government sector has shrunk relative to other sectors in terms of expenditures and personnel. Initial results from the re-tabulation point to a bigger role for industry funding and a greater emphasis on applied R&D in PRIs than is suggested by Frascati data.

The changing profile of the PRI sector, broadly defined, calls for additional country- and institute-level information to support policy making. This chapter begins to present the results of the RIHR project country context notes, institutional case studies and institute-level survey. It describes the types of entities considered to be PRIs and outlines the orientation of the sector. The evidence suggests the focus and targets of PRIs have undergone some significant changes in recent years. Excellence and openness are now focal points for many institutes. PRIs tend to focus on specific sectors, fields or tasks, with applied research generally a key activity. Supporting industry and conducting research of benefit to society are the main goals.

Organisational arrangements, governance arrangements, funding and human resources continue to evolve in response to changes in PRIs’ goals, linkages and environments. The evidence described in this chapter points to numerous examples of structural changes to institutes, often including more industry involvement, and wide variance in PRIs’ “distance” from government. Nevertheless, governments continue to exercise important influence, via highlevel strategic direction, supervisory arrangements, funding and performance contracts. Funding is increasingly diverse, with more competitive channels. Human resources remain major inputs to PRI activity.

National and international linkages are an important facet of public research institutions’ operations. This chapter presents evidence showing that the importance of linkages has increased for many institutes in recent years. Methods of linking are varied, and differ by partner and by country. Most linkages are collaborative, and purely competitive relationships appear to be limited. Some countries identified scope to increase the linkages of their PRIs; however, this may need to be tempered by considerations of PRI size.

Public research institutions (PRIs) have undergone much change in recent years and are now a diverse set of institutes. This chapter highlights the evidence on their outputs and performance, drawing on the evidence from context notes, case studies and survey as well as evaluations. While assessments are often positive, they also highlight issues that require policy attention to boost PRIs’ effectiveness in meeting their missions. The evidence points to a future policy agenda centred on ensuring the relevance of PRI activities, shaping government funding to support PRI goals, enabling linkages and bolstering human resources.