policies to support innovation driven growth 2 nd operational meeting of the pam panel on external...
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Innovation as a source of competitiveness Innovation is the creation of new products or processes or the improving of existing ones Innovation is a key way to retain or gain competitiveness Innovation results in higher added valueTRANSCRIPT
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Policies to Support Innovation Driven Growth
2nd Operational Meeting of the PAM Panel on External Trade and Investments in the Mediterranean
José PalacínUnited Nations Economic Commission for Europe
Geneva, 5 May 2011
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Structure of the presentation
• Innovation and Competitiveness• National Innovation Systems• Common problems• Policy mix/target settings• Different types of policies
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Innovation as a source of competitiveness
• Innovation is the creation of new products or processes or the improving of existing ones
• Innovation is a key way to retain or gain competitiveness
• Innovation results in higher added value
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Innovation and competitiveness
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National innovation systems
• Innovation is a complex process: emerges from a continuous interaction between – firms, – suppliers and buyers – knowledge institutions like universities or
research and development (R&D) organizations – Government policies
• International dimension
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National innovation systems
Source:OECD
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Common problems in emerging markets
• Only a few large enterprises innovate• The share of innovative SMEs is very small• Weak linkages.• Research disconnect• Innovation policy success limited by
framework conditions.
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The role of the public sector
• Market failures – innovation will be underprovided.
• Specific financing problems• Not only financial resources are required:
long-term vision, coordination, strategic guidance
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Policies required
• Targets to be defined on the basis of the understanding of the national innovation system.
• Targeting simultaneously various components of NIS (interrelations)
• Effectiveness of instruments depends on synergies reached
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National innovative capacity
Absorptive capacity
Knowledge creation Innovation governance Diffusion capacity
Demand
Source: UNECE
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Generation of knowledge
• Increasing R&D• In particular, higher business R&D• Importance of R&D serving to absorb
foreign technologies• Non-technological innovation- Services• Users-led innovation
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Absorptive capacity
Human capital development• Business sector involvement (identification
needs)• Lifelong learning• Role of universities: teaching, research. • International cooperation and mobility.
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Diffusion of innovation
Importance of linkages
• The role of partnerships • Clusters• Support organisations
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Stimulating demand for innovation
• Framework conditions• Fiscal support• Public procurement• Sustainability: environmental regulations as
a source of support for innovation
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Improving innovation governance
• Diversity of national experiences but need to avoid fragmentation
• Innovation agencies as partners • Coordination mechanisms with stakeholder
involvement• National innovation constituency
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A map into the future
• Policy learning as part of the cycle of policy-making: embedded evaluation
• Importance of strategic intelligence based on a range of instruments
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Some final remarks• Strong public policies are critical to overcome
market failures regarding innovation • The promotion of innovation concerns many
different policy areas- not only technology• Linkages and mobility are key to the generation
and diffusion of innovation. • This importance should be reflected in both
domestic policies and international cooperation initiatives.
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Some publications