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Supporting Investment in Knowledge Capital, Growth and Innovation

image of Supporting Investment in Knowledge Capital, Growth and Innovation

Knowledge-based capital (KBC) results from business investment in non-physical assets such as R&D, data, software, patents, new business models, organizational processes, firm-specific skills and designs. This publication brings together the results of a two-year programme of work at the OECD on New Sources of Growth and the role of Knowledge-based Capital (NSG-KBC). This work shows that business investment in KBC is a key to future productivity growth and living standards. In many countries, business investment in KBC has increased faster than - and in some countries significantly exceeds - investment in physical capital (like machinery). To promote long-term growth and the jobs of tomorrow, governments must ensure that framework conditions, institutions and policies facilitate business investment in KBC. Emerging economies are also making concerted efforts to help their businesses accumulate KBC. This book sets out policy analyses and recommendations in the fields of: innovation; taxation; entrepreneurship and business development; corporate reporting; big data; competition and measurement.

English

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Exploring data-driven innovation as a new source of growth: Mapping the policy issues raised by “big data”

Several technological and socioeconomic trends, including the migration of social and economic activities to the Internet, and the falling costs of data collection, transport, storage and analytics, are leading to the generation of huge volumes of data – often referred to as big data. Big data now represents a core economic asset that can create significant competitive advantage for firms and drive innovation and growth. This chapter considers five sectors in which the use of data can stimulate innovation and productivity growth: online advertisement, health care, utilities, logistics and transport, and public administration. Overall, the benefits that big data can create in these sectors include: the development of new data-based goods and services; improved production or delivery processes; improved marketing (by providing targeted advertisements and personalised recommendations); new organisational and management approaches, or significantly improved decision-making within existing practices; and enhanced research and development. Optimal public policy in this sphere has still to be identified. However, it is clear that to unlock the potential of big data, OECD governments need to develop coherent policies and practices for the collection, transport, storage and use of data. Among others, these policies cover issues such as privacy protection, open data access, the supply of skills and infrastructure, and measurement (better capturing the value of data in economic statistics).

English

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