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OECD Economic Surveys: Spain 2007

image of OECD Economic Surveys: Spain 2007

This edition of OECD's periodic survey of Spain's economy examines the key policy challenges Spain will be facing.  In particular, it examines the chellenges of returning to more sustainable growth, of managing fiscal policy, of strengthening innovation and of improving the functioning of goods and services markets.

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Strengthening innovation

Strengthening technological innovation and using new technologies are some of the key components of Spain’s policy for stimulating productivity growth and guaranteeing the persistence of its medium-term economic convergence with the most advanced OECD countries. This chapter examines the different factors responsible for the economy’s poor technological innovation performance. It looks in turn at the main features of innovation policy, the performance of the education system – especially at the university level – and the framework conditions for innovation – in particular the functioning of the labour market, competition policy and financing of start-ups, including venture capital – various areas in which the government has recently launched a set of reforms. The objective is to assess the main measures proposed and to suggest additional ways of strengthening the innovation performance of the country.

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