Digital technologies have a profound impact on economies and societies and are changing the way we work, communicate, engage in social activities and enjoy ourselves. They also drive innovation in many different spheres of life. The innovative capacity of technology is very much conditioned by the level of digital skills of the population. No wonder there is a very strong correlation between education and skills and the uptake and use of digital technologies in various spheres of life. The role of education and skills in promoting innovation is critical.

This background report to the second Global Education Industry Summit, held in Jerusalem on 26-27 September 2016, covers the available evidence on innovation in education, the impact of digital technologies on teaching and learning, and the role of digital skills and the education industries in the process of innovation, using data from OECD surveys. The overall aim of the summit was to bring together ministers of education and industry leaders to start a dialogue on policies and strategies to foster innovation in education.

Education is sometimes perceived as a sector which is resistant to change, while at the same time it faces a crisis of productivity and efficiency. Innovation could help improve the quality of education, as well as provide more “bang for the buck” in times of budget pressures and rising demand.This chapter considers what is meant by innovation in the context of the education sector, and how best it can be measured. Using data from international surveys, it finds that education is more innovative in some ways than other sectors and that there has been innovation across all countries, particularly in teaching methods. It considers what skills are needed to encourage innovation more widely in the economy and whether schools and universities are helping students develop those skills. Finally, it looks at national and international strategies covering innovation in education and beyond.

As technological change continues to accelerate, the digital economy is rapidly permeating the whole of the world economy, making digital skills key for almost everyone. This chapter briefly surveys the use of the Internet and information and communications technology by businesses and individuals and the links between digital behaviour and age, education and socio-economic background. It considers how far the “digital divide” is closing for students from different countries and backgrounds.Using data from international surveys, the chapter looks at digital skills among the adult population, and the impact they have on employment and wage levels, and national policies to foster greater skills. Finally, it examines digital skills among 15-year-olds and whether the gap between those from the richest and poorest households is closing as Internet access becomes more widespread.

Education policies need to reflect the fact that computers and the Internet are increasingly ubiquitous in everyday lives. This chapter considers the potential and actual impact of information and communications technology (ICT) on teaching and learning. It finds that between 2003 and 2012, students across the world have gained greater access to computers at school, although the intensity and variety of use varies across countries. It examines the factors which encourage teachers to make more use of ICT in the classroom and what holds them back, and looks at teachers’ ICT problem-solving skills in relation to their peers outside education. Finally, it considers whether investment in technology, or students’ use of computers and the Internet, are related to improved educational outcomes.

As showed, simply introducing digital technology into education for technology’s sake does not materially improve results. Such whole-system reforms need to place teaching practice rather than technology in the driving seat. This chapter explores how innovative approaches to technology-supported learning can truly enhance education. It considers five models of how teaching can be supported by technology: 1) educational gaming, 2) online laboratories, 3) technology-enabled collaboration, 4) real-time formative assessment and 5) technological support for skills-based curricula, using examples from the Hewlett Packard Catalyst Initiative project.It then considers other means by which technology can improve learning, whether in schools or for individuals: e-learning, where the web is to support learning; open educational resources, which provide customisable materials for teachers and learners; and new forms of online education, such as massive open online courses which potentially make education available to anyone, anywhere, at any time.

The private education resource industry is one potential source of innovation in the education sector. This chapter outlines the results from a study of the market structure of the education industry covering 14 countries. The chapter reports its findings on 1) the size of the market, segmented where possible by levels of education; 2) the number of firms and degree of market concentration; 3) the market leaders; and 4) the level of investment by those market leaders into research and development.The chapter also considers how the information available about the education resources sector could be improved and the role of policy makers in encouraging greater innovation in the sector as part of a wider innovation strategy for education and training.

Innovation should offer the education sector the means to close the productivity gap by disseminating new tools as well as new practices, organisations and technology. This chapter considers why educational scientific research has done little to create a body of practical technical teaching know-how or improve practices in the classroom. It then uses patent data to analyse the state of technical innovation in the educational support market, and identifies the emergence of a specialised educational tools industry which may help to disseminate the results of scientific research into education. Although there are barriers to small innovative firms in the educational market, and patents can have a damaging effect on innovation within the classroom, it appears that the most promising markets for new educational tools lie outside the public school system – in tertiary education, corporate training and individuals undertaking lifelong learning.

The following text provides a report, drafted by the general rapporteur and the session facilitators, of the discussions that took place at the first Global Education Industry Summit in Helsinki on 19-20 October 2015.