INNOVATION AND INCLUSIVE GROWTH Advisory Group Meeting Caroline - PowerPoint PPT Presentation

INNOVATION AND INCLUSIVE GROWTH Advisory Group Meeting Caroline Paunov Paris, France - 3 July 2014

Session 1b: Overview of the publications’ main messages (Document: Innovation for Inclusive Growth ) 2

Innovation matters for inclusive growth • Growth is not necessarily inclusive nor complete solution for addressing poverty and exclusion • Innovation is relevant because : A. “Disruptive” nature of innovation with effects on distribution B. Innovation can be a solution: “inclusive innovations” 3

Three trends drive impacts Information and Communication Technologies Labour demand effects depending on education & nature of changes (automatisation / work reorganisation) Growing Emerging Markets Knowledge Economy Changing demand for types of Changing role of capital innovations & contributions depending on capital / depending on type of bias in input needs for innovations innovation 4

Industrial and territorial inclusiveness: dispersion is substantial Industrial and territorial dispersion in performance • National patent concentration by top 10% of TL3 regions, average 2008-10 • “Islands of 87 Turkey Canada 83 excellence” whether Australia 81 Chile 73 China (TL2) 73 firms, industries, United States 72 Finland 65 universities, Greece 64 Spain 64 territorial exist Brazil (TL2) 64 Mexico 62 India (TL2) 60 everywhere … France 57 Sweden 55 Korea 54 Netherlands 52 • R&D activity Portugal 51 Japan 49 support growth of South Africa (TL2) 49 United Kingdom 45 Austria 44 leading regions ! Germany 42 % Czech Republic 30 Ireland 26 0 20 40 60 80 100 5 Source: OECD Regions at a Glance 2013

Factors affecting industrial and territorial inclusiveness • Divergent trends in terms of future opportunities for “level - playing field” (ICTs (+/-), costs of R&D, ...) reducing “islands of excellence” “Trickle - down” dynamics • Contributions of “islands” for remainder • “Absorptive” capacities • Linkages with remainder 6

Policies for industrial inclusiveness • Focus of policies on open “excellence” vs. creating “level - playing field” = relative balance matters, not setting criteria for excellence Practice of policies and their potential exclusion of • smaller players and biases from policy interactions • Innovation policy instruments differ in impacts on industrial inclusiveness: “ inclusiveness footprint ” 7

Inclusive Innovations as a solution Products Well-being Entrepreneurship Services Mobile money Off the grid electricity Fuel from waste “Assembly line” cataract operations 3D printing from waste Community phone shop 2000$ car Pedal washing machine 8

Sustainability and scale: what is needed? • Frugal & grassroots innovations if focused on financially sustainable initiatives & business development opportunities • Focus: Inclusive innovations in education – Critical factor: skills and training – Focus on building certain abilities (motivation, etc.) & removing obstacles (financial constraints) • Some specificities including reliance on public finance , donations, … different type of “sustainability” and “scale” 9

Requirements for scale and policy • Scale success requires – Correctly understanding Policy responses demand of the poor - Consultation – Innovation! processes involving the poor – Private businesses - Governmental co- involved in steering operation – Taking advantage of - Regulatory efforts infrastructures - Evaluation (& – “Pragmatic” regulation measurement) efforts (esp. public services) 10

Reaching “open excellence” for the benefit of all? 11