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&ampT) across OECD countries, analysing changes in the funding and performance of research and development (R&ampD) 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.