innovation policies for inclusive growth

Innovation Policies for Inclusive Growth

Overview of the project and 2015 report

Outline

• The Innovation for Inclusive Growth Project

• Overview of the 2015 Report “Innovation Policies for Inclusive Growth”

The Innovation for Inclusive Growth Project

The Innovation for Inclusive Growth Project:

Horizontal OECD Initiative – Committee for Scientific and Technological Policy as

lead committee – Involves the Territorial Development Policy Committee

and the Centre for Educational Research and Innovation – OECD Inclusive Growth Initiative Network – Experts and researchers, Inter-American Development

Bank, World Bank, Growth Dialogue, Global Research Alliance

Advisory Group : – Austria – Chile– China 4

– Colombia– Costa Rica– India

– Indonesia– Israel– Korea

– Mexico– South Africa

2012: Incubator phase • November: Conference on

Innovation and Inclusive Development, Cape Town, organised with the South African Department of Science and Technology

• Scoping document

2013-2014: Producing evidence • Policy framework and

background analyses• March 2014: Symposium on

Innovation and Inclusive Growth, Paris, organised with the Growth Dialogue

• Advisory Group meetings

2013: Project set-up and start of analyses • Creation of Advisory

Group and experts network• Scoping questionnaire• Newsletters• Project development

The Project Timeline (1/3)

May 2015: PublicationThe “Innovation Policies for Inclusive Growth” publication focuses on how innovation can serve inclusive development. It discusses a variety of inclusive innovations aimed at improving the welfare of excluded groups, notably in terms of essential public services and policy approaches to support inclusive innovation. It also looks at industrial and territorial inclusiveness. More information can be found at: http://oe.cd/inclusive-inno-report

February 2015: International Conference on Innovation for Inclusive Growth Organised jointly with the Confederation of Indian Industry (CII), the World Bank Group (WBG) and the United Nations University - Maastricht Economic and social Research and training centre on Innovation and Technology (UNU-MERIT) in New Delhi, India.


October 2015: Ministerial Meeting of the OECD Committee for Scientific and Technological Policy (CSTP), KoreaThe project’s findings contributed in particular to policy discussions around the break out session on global inclusiveness.

2016: Deliverables• Final

publication• Policy toolkit • Policy experts

conference

February & March 2015: Advisory Group Meetings • Defining the project scope• Setting up priorities and timelines

28 September 2015: Report The report “Boosting Malaysia’s National Intellectual Property System for Innovation” assesses how the country’s national intellectual (IP) system supports innovation and offers recommendations to improve its design, looking in particular to enhancing opportunities for users.

April - December 2015: Producing evidence Analytical work including: • Framework and

econometric evidence on the innovation-income inequality relationship

• Policy toolkit with country policy cases on inclusiveness


April 2016: Symposium on Technology, Innovation and Inclusive Growth: Future PerspectivesOrganised jointly with World Bank and the Growth Dialogue

Symposium on Technology, Innovation and Inclusive Growth: Future Perspectives

2-3 May 2016 – Paris

Key messages:

• Digital innovation fosters social mobility through processes of creative destruction, but they may also generate rents that can increase income inequality.

• New technologies may result in significant job displacement over the next decades. Policies need to manage the transition period.

• Despite “new” challenges arising from technological progress, the same “old” policy responses are offered. Are they still adequate?

Symposium on Technology, Innovation and Inclusive Growth: Future Perspectives (2)

Key messages:

• New technologies may significantly improve income, health and welfare. Productivity growth, however, is weak to date, which can only partly be explained by inappropriate measurement.

• Developing countries have opportunities to leapfrog to new technologies to catch-up more quickly to leading economies, but for this to happen they need to invest in infrastructure and human capital.

• The impacts of new technologies vary across countries; emerging economies are not experiencing job polarisation when confronted with ICT.

Overview of the 2015 Report “Innovation Policies for

Inclusive Growth”

Scaling Up Inclusive Innovations : Definition

Inclusive Growth : “economic growth that creates

opportunity for all segments of the population and distributes the

dividends of increased prosperity, both in monetary and non-monetary

terms, fairly across society”.

Scaling Up Inclusive Innovations : Definition

• Innovations that improve the welfare of lower-income and excluded groups – For consumption – In support of economic activities

Pro-inclusive innovations:

poor as end consumers

Grassroots innovations:

poor also innovators

12

13

Scaling Up Inclusive Innovations :Examples

Mobile money

3D printing from waste

2000$ car

“Assembly line” cataract surgeries

Community phone shop

Off the grid electricity

Adapted curriculum

Scaling Up Inclusive Innovations : In OECD context

Crowdfunding

“Sharing economy”

Low cost

Scaling Up Inclusive Innovations

Globalization, emerging economies and ICT

Emerging economies’ middle

class

Number of Inclusive innovations

introduced by firms

Social inclusiveness

Reduced development costs of inclusive

innovations

Demand factors Supply factors

16

Scaling Up Inclusive Innovations : Missing scale

Mobile money

“Assembly line” cataract surgeries

Community phone shop Adapted curriculum

Scaling Up Inclusive Innovations : Missing scale


Emerging economies’ middle class

Number of Inclusive innovations introduced by

firms


Reduced development costs of inclusive innovations

Missing scale


Characteristics

Challenges

Missing scale

Scaling Up Inclusive Innovations : Characteristics & Challenges

Informality reduces access to public service

Uncertainty about uptake

Types and costs of innovations

Access to expertise, knowledgeand finance

Information about consumer needs

Market conditions for firms

Reduced opportunities for traditional financing for pro-inclusive & low financial inclusion for grassroots

Low access to expertise for grassroots

Regulation may constrain market entry

Baseline conditions require more adaptations

Scaling Up Inclusive Innovations : Rationale for policy intervention


Emerging economies’ middle class

Number of Inclusive innovations introduced by

firmsPolicies in support of inclusive innovation


Reduced development costs of inclusive innovations

Missing scale


Characteristics

Challenges

Missing scale

Policies in Support of Inclusive Innovation: Actors

The poor Grassroot innovators

Consumers

Government Different ministries (innovation, health,

education, etc.) Regional government

NGOsPrivate sector

MNEs national companies

SMEs

Public research institutes and universities

Financial sectorBanks Impact

investors Aid and

development agencies

Microfinance

20

21

Policies in Support of Inclusive Innovation

Informality constraints

Uncertain uptake





Low access to traditional loans

Lack of financial inclusion

Low access to knowledge networks

Regulatory constraintsGovernmental co-operation

Policy response

Missing infrastructure

Characteristics

Challenges

Co-operation across actors

Governmental Cooperation

The poor - Grassroot innovators

- Consumers

Government - Different ministries (innovation, health,

education, etc.)- Regional government

NGOsPrivate sector

- MNEs- national companies

- SMEs

Public research institutes and universities

Financial sector- Banks - Impact investors - Aid and


- Microfinance

22

Coordination within

government institutionsHorizontal (between

ministries)Vertical (local governments)

“Social Innovation Policy” (Colombia)

• A cross-cutting policy between different national institutions:

• 6 regional nodes

Fostering Cooperation Between Actors


- Consumers

Government - Different ministries

(innovation, health,

education, etc.)

- Regional government

NGOs

Private sector - MNEs

- national companies

- SMEs

Public research institutes

and universities

Financial sector:- Banks - Impact investors - Aid and


- Microfinance institutions

23

National Innovation Foundation (India)

National Innovation Foundation (India)

• Partners with Honey Bee Network

• Documents grassroot innovations and traditional knowledge : 181,000 ideas

• Support commercialisation Partnership with R&D

institutions Risk capital (Micro

Venture and Innovation Fund)

• Promotes intellectual property use


Financial support

24Informality constraints

Uncertain uptake









Policy response


Characteristics

Challenges


Financial Support


- Consumers

Government - Different ministries

(innovation, health,

education, etc.)

- Regional government

NGOs

Private sector - MNEs

- national companies

- SMEs

Public research institutes

and universities

Financial sector:- Banks - Impact investors - Aid and


- Microfinance institutions

25

Financial Support- Public- Private

Partnerships (South Africa)

- World Bank Viet Nam Inclusive Innovation Project

Financial support


Uncertain uptake









Policy response


Characteristics

Challenges



Regulatory Framework

M-Pesa

• Better penetration than banking in Kenya

• Could not develop in South Africa due to stricter regulation

Financial support


Uncertain uptake









Policy response


Characteristics

Challenges



Regulatory Framework

Innovation and Inclusive Growth

Inclusive Growth

• Inclusive Growth :

Industrial

Social

Territorial

Innovation – Growth Nexus


Innovation policies’ “inclusiveness footprint”

Democratization of

innovation


Increasing role of innovation for

growth

Islands of excellence /

laggards

Territorial and industrial

inclusiveness

-

Emerging economies’

middle class


Policies in support of inclusive innovation

Reduced development costs

of inclusive innovations

Missing scale

Demand factorsSupply factors

+

Innovation – Growth Nexus



middle class




Democratization of

innovation



growth


laggards



Missing scale



inclusiveness

- +

Concentration of Innovation



middle class





growth


laggards



Missing scale



inclusiveness

-

Democratisation of Innovation



middle class



Democratization of

innovation



growth


laggards



Missing scale



inclusiveness

- +

Innovation Policies and Inclusiveness



middle class




Democratization of

innovation



growth


laggards



Missing scale



inclusiveness

- +

Further Information

More about the project

• Visit the project’s website at: http://oe.cd/inclusive

• Email us to subscribe to the project’s newsletter

Contacts:Caroline Paunov: [email protected]

Sandra Planes-Satorra: [email protected]

• Find out more about the report at http://oe.cd/inclusive-inno-report

http://oe.cd/inclusive

http://oe.cd/inclusive-inno-report

http://oe.cd/inclusive-inno-report

innovation policies for inclusive growth

Presentations & Public Speaking