OECD Science, Technology and Industry Outlook

Frequency :
Biennial
ISSN :
1999-1428 (online)
ISSN :
2074-7187 (print)
DOI :
10.1787/19991428
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OECD’s biennial comprehensive review of key trends in science, technology and innovation policy in OECD countries. In addition to examining main trends across the OECD, the report delves into specific topics that are high on the agenda of innovation policy makers, such as the role of intellectual property rights and technology licensing markets in innovation performance, policies to enhance benefits of the globalisation of business R&D, human resources for science and technology, and the evaluation of innovation policy. While retaining its focus on developments in OECD countries, it also highlights key developments in a number of important non-member economies, including China, Russia and South Africa. A statistical annex provides up-to-date statistics on R&D funding, patents, researchers and other indicators of innovative performance.

Also available in: French
 
OECD Science, Technology and Industry Outlook 2002

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Authors:
OECD
Publication Date :
04 Oct 2002
Pages :
328
ISBN :
9789264199002 (PDF) ; 9789264198449 (print)
DOI :
10.1787/sti_outlook-2002-en

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Science and technology increasingly contribute to economic growth, industrial competitiveness and the realisation of societal objectives. As countries continue the transition to knowledge-based economies, policy makers seek effective ways to improve the ability to create, absorb, diffuse and apply knowledge productively, by stimulating business investments in research and development, reforming science systems and their links to industry, promoting the development of human resources and stimulating competition and industrial restructuring.

The OECD Science, Technology and Industry Outlook 2002 informs policy making by providing a broad, integrated assessment of these important issues. In addition to reviewing recent trends, the report identifies significant changes in science, technology and industry policies in the OECD countries. Special chapters examine emerging issues related to changing business strategies for R&D, competition and co-operation in the innovation process, reforming national science systems, strategic use of intellectual property rights in public research institutions, industrial globalisation and international mobility of scientists and engineers. Following the granting to China of observer status to the OECD Committee for Scientific and Technological Policy, a special chapter is devoted to this country’s challenges in the area of scientific and technological policy. A statistical annex provides up-to-date indicators related to science, technology and industry.

Multilingual Summaries
Also available in: French

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  • Executive Summary

    Despite the economic slowdown that spread across the OECD area in 2001, investment in and exploitation of knowledge remain key drivers of innovation, economic performance and social wellbeing. Over the last decade, investments in knowledge – as measured by expenditures on research and development (R&D), higher education, and information and communication technologies (ICTs) – grew more rapidly than gross fixed capital formation. Admittedly, the pace and depth of this transition has varied considerably, notably in regard to relative investments in R&D, higher education and software. Nevertheless, the general trend continues apace, as is clear from the rising share of technology and knowledge-based industries in total gross value added and employment in the OECD area.

  • Strengthening the Knowledge-based Economy

    This chapter summarises recent trends in science, technology and industry-related activities in the OECD area. It reviews the changing economic environment in which these trends evolve and the effects of the economic downturn of 2001 on the economy. It then examines structural changes that have affected OECD countries over the past decade, with the rise of knowledge-intensive activities and the sharp expansion of information and communication technologies (ICTs). It provides an overview of the main patterns of investment and production in science and technology (S&T) across OECD countries, analysing changes in the funding and performance of research and development (R&D) and patterns of higher educat ion expenditures and attainment. Finally, it highlights major trends in the internationalisation of science and technology which have fostered knowledge flows among OECD countries over the past decade.

  • Recent Developments in Science, Technology and Industry Policies in OECD Countries

    This chapter focuses on changes introduced over a two-year period; it does not comprehensively map major trends across the OECD region. Several countries introduced legislation that will not be implemented until a later date; others are continuing along a path of reform laid out in a multi-year plan of several years ago. Nevertheless, the chapter shows that most OECD countries see an increasing role for science, technology and innovation as essential to continued economic and social progress. Governments have committed to strengthening their role in promoting S&T and innovation and have introduced a variety of initiatives and policy measures. They have also recognised the importance of strong linkages among actors in national innovation systems.

  • Public and Private Financing of Business R&D

    This chapter aims to inform the policy debate by examining fundamental changes in the financing, organisation and conduct of business R&D and their implications for S&T policy. It presents key statistics describing private and public financing of business R&D and reviews the major changes in business strategies for R&D from the perspective of the firm. It then identifies important issues that policy makers will need to address to enhance not only the effectiveness of public financing of R&D but also the performance of national innovation systems. These include greater emphasis on knowledge creation, SMEs and intellectual property rights (IPRs). While the general conclusions are broadly applicable across the OECD area, the steps that individual countries take will need to be tailored to the characteristics of local industry (specific industries, their relative stage of development) and the capabilities of other elements of their national innovation systems.

  • Competition and Co-operation in Innovation

    This chapter looks at the development of harmonised innovation policy frameworks that take these benefits and risks into account. It examines the relationship among innovation, competition and market power and reviews evidence of increasing inter-firm co-operation in innovation, especially in hightechnology industries. It also describes recent changes that have fostered greater co-operation in a highly competitive and innovative environment. It then sets out the main competition issues that arise for different forms of co-operation, ranging from loose forms such as patent licences to more tightly coupled forms, such as joint ventures and mergers. The chapter shows that the disciplinary role of actual and potential competition as a driver of innovation is not necessarily diminished by the growing trend towards inter-firm co-operation. Co-operation and competition are not necessarily at odds and one need not be traded off against the other when concerns about the ability and incentive to innovate in the future, rather than only about effects on prices and output levels in existing markets, are taken into account.

  • Changing Government Policies for Public Research

    This chapter sets out the issues involved in governing the science system and explains why the issue is no longer viewed simply in terms of financing basic research. It outlines the main trends exerting pressures for reform on the science system and reviews statistical trends in the funding and performance of public-sector R&D. It then describes key issues faced by policy makers and reviews some reforms being adopted by the OECD member governments to address them. Many of these reforms are new, and countries continue to experiment with new ways of governing the science system. Considerable evaluation will be needed before the effects of these changes on the science system can be determined. While recommendations for further reforms cannot be made, areas for future consideration are identified.

  • Patenting and Licensing in Public Research Organisations

    This chapter reviews current trends regarding IP management at PROs and identifies related policy issues. It discusses government policies influencing strategic IP behaviour of PROs, including policies regarding the ownership of IP resulting from government-funded research (see also OECD, 2000). It then presents available information on the IP management activities at PROs, drawing on the available literature and on a recent international survey of IP management conducted under the auspices of the OECD. Such data provide valuable information for helping determine whether the current system of protection works to achieve the goals of public research institutions or whether the practices present problems for either the scientific enterprise or commercial innovation. The chapter then examines a number of policy issues that arise from greater IP management by PROs, including openness of and access to research materials and results, the costs and benefits of IP protection at PROs, possible effects on the research enterprise, and potential conflicts of interest. It identifies the levers that are available to both public organisations and to governments as they try to manage their IP in ways that balance commercial goals and research missions without damaging public trust.

  • Industrial Globalisation and Restructuring

    This chapter examines the increasing role of cross-border M&As and strategic alliances in the globalisation and restructuring of industry and their implications for government policies. It reviews major trends in industrial globalisation and restructuring through cross-border M&As and strategic alliances. It then illustrates the different trends in and motivations for cross-border M&As and strategic alliances in five major sectors (automobiles, telecommunications, pharmaceuticals, steel and airlines), as patterns of industrial globalisation differ significantly across sectors. The final sections identify the potential impacts of cross-border M&As and strategic alliances on performance and highlight policy issues for facilitating globalisation and restructuring through cross-border M&As and strategic alliances, as well as for mitigating concerns about them. Much of the data used in the analysis refer to the period ending in 2000. The subsequent global economic slowdown has undoubtedly altered the pattern and the pace of globalisation, but levels of globalisation activity remain historically high and the policy issues continue to be important.

  • International Mobility of Science and Technology Personnel

    The migration of scientific talent is far from a new phenomenon. Already in ancient times, mathematicians, philosophers and other scholars travelled far and wide to share knowledge, and in modern times, the patterns and drivers of skilled migration have become increasingly diverse and complex. As of the second half of the 20th century, skilled migration has often flowed from the developing world to advanced OECD countries. By the 1990s, as globalisation gained momentum owing to the liberalisation of trade and capital flows in the 1980s, technological change and demand for skilled labour by high-technology and R&D-intensive industries accelerated flows of skilled labour to OECD countries. In a number of countries, immigration policies have become more selective and skills-based, and shortages of certain specialists, particularly information technology (IT) workers, have resulted in relaxed immigration policies for skilled workers. The demand for foreign talent also emanates from universities and public research organisations, especially in the United States, Canada, the United Kingdom and a few other European countries. Countries increasingly compete for students and researchers from a global talent pool in order to maintain their lead in cutting-edge research and, in some cases, to offset the decline in S&T graduates among nationals.

  • Science and Technology in China

    This chapter draws primarily on official Chinese sources to provide a preliminary review of China’s S&T system, with the aim of identifying main policy challenges for improving the system. It provides a brief introduction to China’s R&D system and outlines major reforms implemented since the mid-1980s, including a concise overview of China’s S&T capability, based on both input and output measures of S&T effort. While the discussion focuses mainly on national trends and capabilities, it recognises that there are significant regional variations. The chapter examines the innovation capability of the Chinese enterprise sector, considering in particular the role of foreign direct investment (FDI) and technology trade in boosting China’s S&T capability. Finally, key challenges that require continued policy attention and further analysis are identified.

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