The OECD Science, Technology, and Industry Outlook 2010 is the eighth in a biennial series designed to examine trends, prospects and policy directions in science, technology and industry across the OECD area and major non-member economies. In addition to synthesising the latest available information on major policy developments, it contains a chapter on the design and assessment of innovation policy: the “policy mix”. It also provides individual profiles of the science and innovation performance of countries and relates these to their national context and current policy challenges.

In 2011 the OECD celebrates its 50th anniversary, and to mark the occasion we’ll look briefly at how science and technology have evolved since the 1960s, how the OECD contributed to this evolution and the prospects for the 21st century.

As the following examples show, the OECD has been a major influence on how governments approach science, technology and innovation, and how economics as a discipline tries to understand these phenomena.

In the wake of the financial crisis, science, technology and innovation (STI) will make a vital contribution to a sustainable and lasting recovery and to the longer-term growth prospects of OECD and non-OECD economies. STI can open new avenues to meet some of the major challenges facing societies: demographic change, global health issues and climate change. To deliver on these agendas, it is essential for countries to maintain productive investments in knowledge. STI has never been more important.

This chapter provides an overview of the main trends in science, technology and innovation across the OECD area and in selected non-member economies. Using the latest available data and analyses, it highlights changes in R&D investment and skilled human resources, and explores their impact on scientific and innovative activity. It also analyses trends in globalisation and looks at the future potential of non-OECD economies in the innovation arena. Against the backdrop of the financial crisis and economic downturn, and to provide a forward-looking component, the chapter also uses available data and evidence to discuss the future growth prospects of OECD and selected non-member economies, future challenges facing societies, and emerging areas in science, technology and innovation.

This chapter presents the main trends in national science, technology and innovation policies, with a particular focus on policies and programmes introduced between 2008 and 2010. It discusses developments relating to public-sector research, government support for business R&D and innovation, collaboration and networking among innovating organisations, globalisation of R&D and open innovation

In recent years, the concept of an innovation policy mix has become an increasingly popular way of thinking about the balance and coherence of the strategic tasks for policy and of the range of policy instruments deployed. This chapter further elaborates the concept and explores its utility for innovation policy assessment and design. The analytical framework outlined will be an important component of the new innovation policy handbook currently being prepared as a follow-up to the OECD Innovation Strategy.