OECD Science, Technology and Industry Outlook 2002

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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 2002informs 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.

English Also available in: French

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.

English Also available in: French

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