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Innovation for Development and the Role of International Co-operation
Yuko Harayama
Directorate for Science, Technology and Industry OECD
Does innovation matter for development?
• Addressing urgent development needs – Drinking water, neglected diseases, hunger, …
• Technological solutions – Technology transfer, adapting, implementing,
diffusing, … ← Catch-up
• Innovation capacities – Taking advantage of local knowledge
→ Eventual leapfrog!
• Coupled with “social” innovation May 2012 2 Florida University
Some examples
May 2012 Florida University 3
Mechanism/objective of innovation Type/source of innovation and main agents involved
• Adoption requires adaptation: Innovation needs to respond to specific “local” conditions for outcomes
• Examples: New plant varieties for agriculture, efforts at developing new methods for mineral extraction in the Chilean copper industry to satisfy local needs
• Incremental innovation based on foreign innovations and technologies
• Agents: universities and research institutes, leading private businesses, esp. those with exposure to foreign markets and businesses
• Inclusive innovation: for/by low- and middle-income households to improve welfare and access to business opportunities
• Examples: India (nano cars; grassroots innovation), mobile banking services
• Incremental innovation based on foreign technology and/or local, traditional knowledge generated “out of necessity”
• Social innovation helping to introduce technical innovations in communities
• Agents: NGOs, small firms, public and private associations engaged in disseminating knowledge via networks, private, often large businesses
Case of emerging countries
May 2012 Florida University 4
Mechanism/objective of innovation Type/source of innovation and main agents involved
• Climb the value ladder in global value chains
• Example: Automotive industry in Malaysia, India’s software industry
• Incremental and radical innovation capacity to differentiate contributions
• Agents: Involves private sectors with support from public agents, intermediaries, diasporas can play a central role, large firms can be important
• Keep competitiveness in frontier industries when the country is already at the frontier
• Example: Brazilian company Embraer as well as leading R&D firms from emerging economies
• Innovation is identical to developed countries exposed to developments in the global market
• Agents: Involves mainly private sector in interaction with public research institutions and universities, global partnerships often equally of relevance, role of large firms
Changing context
• “Flying geese” paradigm – Japan, Korea, China, Philippine, Vietnam…
• South-South co-operation
• Use of Information and Communication Technologies (ICT) – E.g. Mobile banking
• Global Value Chains (GVC)
• “Manufacturing” versus “Dematerialised”
May 2012 Florida University 5
OECD approach
• “We commit to launch a new comprehensive approach to development across our Organisation entailing greater collaboration, including sharing policy successes and failures and engaging in mutual learning, as well as deepening partnerships between the Organisation and developing countries that want to engage (OECD 50th Anniversary Vision Statement).”
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On going works (DSTI)
• The contribution of innovation to economic growth and well-being
• The impact of globalisation on development and innovation
• Inclusive innovation • Education, skills and human capital • ICTs for development • Institutional frameworks for innovation
policy
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The contribution of innovation to economic growth and well-being (1)
• Taking account of the specificities of developing countries – How to adapt framework conditions for innovation? – Complement or substitute with other priorities for
development such as education, physical infrastructure?
– What types of financial arrangements?
• Identifying obstacles for the broader deployment of modern technology across the economy – Including in traditional sectors
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• Opportunities, Challenges and Good Practices in International Research Cooperation between Developed and Developing Countries (GSF, 2011)
• Meeting Global Challenges Through Better Governance: International Co-operation in Science, Technology and Innovation (STIG, 2012)
• Innovation Policy Country Reviews • Chile, China, Mexico, South Africa
May 2012 Florida University 9
The contribution of innovation to economic growth and well-being (2)
Southeast Asia, Vietnam Innovation Reviews (on-going projects) Innovation Policy Platform (IPP, on-going project)
The impact of globalisation on development and innovation
• Global Value Chains – Role played by emerging and developing countries? – GVCs facilitating or hampering innovation in
developing countries? – What policies enable developing countries to access
global knowledge networks and move up GVCs? • Balance between technology transfer and national
innovation • Intellectual property rights (IPR) systems
– Imperative to respect international treaties and to ensure indigenous innovation!
May 2012 Florida University 10
Global Value Chains (CIIE, On-going project) Trade in Value Added (OECD-WTO, on-going project)
Inclusive innovation (1)
• “Inclusive” innovation – If providing solutions for reducing gaps in living
standards between the richest and poorest groups in society
• “Frugal innovation” • Innovation addressing health and nutritional needs of
the poorest – Beyond traditional redistributive policies and
international aids • Creating market for private businesses, thus self-
sustaining – Facilitating grassroots entrepreneurship
May 2012 Florida University 11
Inclusive innovation (2)
• Learning from case studies • Traditional and informal sector
– How to encourage innovation? – How to link with modern and formal sector?
• Firms’ absorptive and innovative capacity • Integrating more women and ethnic
minorities in innovative activities • Creating markets for “innovations for lower-
and middle-income groups”
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Inclusive Innovation (STI, on-going project)
Education, skills and human capital • Balance between spending on basic and
advanced education, in accordance with the level of development of a country?
• How to promote and benefit from the international experience of high level national scientists and innovators (brain circulation) while avoiding brain drain?
• How to foster the contributions of higher education and research institutions towards development?
May 2012 Florida University 13
Programme on Innovation, Higher Education and Research for Development (OECD-Sida, on-going project
ICTs for development
• Conditions facilitate the diffusion of ICTs in developing countries? – Public and private investment, regulation and
competition policy
• How to increase the benefit that society derives from ICTs, for knowledge generation and diffusion as well as innovation?
• ICTs and mobile phones innovation for inclusive development?
May 2012 Florida University 14
The Development Dimension: Internet Access for Development (2009) Inclusive Innovation (STI, on-going project)
Institutional frameworks for innovation policy
• Public institutions in emerging and developing economies?
• How to improving framework conditions given existing public institutions? – “Resilient” policies?
• Which intellectual property (IP) systems? • How to deal with the informal sector? • Good practices identified in more advanced countries
suitable to emerging and developing economies? (to be adapted?)
May 2012 Florida University 15
Pilot studies analysing IP systems in developing and emerging countries (STI, on-going project) OECD Innovation Policy Country Reviews Science, Technology and Industry Outlook 2012 (forthcoming)
We welcome your Comments, Suggestions, Inputs!
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For further information about our work and for sharing your ideas
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