OECD Science, Technology and Industry Outlook 2010

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In the search for a rapid, sustainable and lasting recovery from the economic crisis, science, technology and innovation are expected to play a driving role. But what are the implications for science and innovation policy? What steps are countries taking to boost their capabilities in these areas? What place are emerging economies likely to occupy in the science, technology and innovation landscape?

The OECD Science, Technology and Industry Outlook 2010 reviews key trends in science, technology and innovation in OECD countries and a number of major emerging economies including Brazil, China, India, Russia and South Africa. Using the latest available data and indicators, it examines topics high on the agenda of economic policy makers, including performance in science and innovation, trends in national science, technology and innovation policies and the design and assessment of innovation policy, including policy interactions and the “policy mix”. It provides individual profiles of the science and innovation performance of each country and relates these to their national context and current policy challenges.

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Australia’s innovation landscape is dynamic and displays a number of strengths. Gross expenditure on R&D (GERD) has grown since 2000 to a record 1.97% of GDP in 2006. Business expenditure on R&D (BERD) was 1.2% of GDP in 2007, below the OECD average that year of 1.6%. The share of GERD financed by industry increased from 54.3% to 58.3% from 2004 to 2006, while the share financed by government fell from 40.3% to 37.3%. Industry financed 96% of BERD in 2007, up from 89% in 2001. In 2006, the services sector performed 40% of BERD. Based on a broad definition of venture capital, venture capital intensity (0.13% of GDP) exceeded the average in 2008. Based on a narrower definition (excluding private equity), however, this ratio has fallen in recent years.

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