Digital Innovation

Seizing Policy Opportunities

image of Digital Innovation

This report discusses how the digital transformation – digital technologies, data and software, AI-based analytics and other advances – is changing innovation processes and outcomes. It highlights the general trends across the economy and factors behind sector-specific dynamics, including increasing use of data as a key input for innovation, the expanding possibilities for experimentation offered by virtual simulation, 3D printing and other digital technologies, and the growing focus on services innovation enabled by digital technologies.

In view of such changes, this report evaluates how innovation policies should adapt to foster innovation and inclusive development in the digital age, and identifies priority areas for policy action. It also explores novel innovation policy approaches implemented by countries to foster digital technology adoption and collaborative innovation.


Impacts of the digital transformation on innovation across sectors

This chapter explores how the digital transformation changes innovation, beginning with profiles of the agri-food, automotive and retail sectors. It goes on to examine differences across sectors in terms of the opportunities for innovation offered by new digital technologies, noting the data needs and challenges involved. Factors behind differences in adoption and diffusion rates are also discussed, including varying capabilities to take up new technologies and diverse competitive landscapes. The chapter concludes by pointing to important within-sector heterogeneities.


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