5. World Population in 2030 Source: Salim Sawaya, based on medium variant of the UN Population Division’s “World Population Prospects: The 2006 Revision Population Database”
12. Innovation is the implementation of a new or significantly improved product , process , new marketing method , or a new organisational method in business practices, workplace organisation or external relations. Defining innovation Source: OECD (2005), Oslo Manual, Paris, 3 rd Edition.
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14. Economies are driven by innovation: It is a fundamental economic investment... Investment in fixed and intangible assets as a share of GDP, 2006 Source: Data on intangible investment are based on COINVEST [www.coinvest.org.uk] and research papers, 2009.
15. … with increasing importance... Investment in intangible assets as a percentage of GDP Source: COINVEST [www.coinvest.org.uk] and research papers, 2009.
16. ...and a driver of productivity... Contributions to labour productivity growth, 1995-2006 Source: COINVEST [www.coinvest.org.uk] and research papers, 2009.
17. … that can help address global social challenges neglected by markets.
18. Innovation is not only about R&D... New to market product innovators with and without R&D, 2004-06 (or latest) As a percentage of innovative firms by R&D status Source: OECD (2010), Measuring Innovation: A New Perspective , OECD, Paris.
19. ...it includes design & marketing... Source: IMD (2000) Innovation and Rennovation: The Nespresso Story, IMD046, 03/2003
20. ...and is multidisciplinary. Scientific publications cited by “green” patents Source: OECD (2010), Measuring Innovation: A New Perspective , OECD, Paris.
21. How innovation is conducted has become more collaborative and “open”.
22. There is more collaboration among scientists... Trends in co-authorship in scientific publications Source: OECD (2009), OECD Science, Technology and Industry Scoreboard 2009.
23. ...and between firms. Firms with national/international collaboration on innovation, 2004-06 As a percentage of innovative firms Source: OECD (2010), Measuring Innovation: A New Perspective , OECD, Paris based on OECD, Innovation microdata project.
27. Innovation is key to growth... Contributions to labour productivity growth, 1995-2006, in % * Investment in intangibles and multi-factor productivity growth account for between two-thirds and three-quarters of labour productivity growth.
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29. Innovation can help address global challenges such as climate change Potential technological contributions to CO 2 emission reductions Note: WEO refers to the IEA’s 2007 World Energy Outlook. Source: International Energy Agency, Energy Technology Perspectives 2008: Scenarios and Strategies to 2050.
30. Biotech reliance on Science… Reliance of patents on science citations (biochemistry papers cited by pharmaceutical patents)
31. New global players have emerged … Contributions to growth in global R&D, 1996-2001 and 2001-2006 (in billion constant US PPP and %) Note: (1) Australia, Canada, Iceland, Korea, Mexico, New Zealand, Norway and Turkey (2) Argentina, Brazil, India, Israel, Russian Federation, Singapore, South Africa, Chinese Taipei Source: OECD.
32. … . demand for graduates is unabated Doctoral graduates as a percentage of total OECD new graduates at doctorate level Source: OECD (2009), Education at a Glance 2009: OECD Indicators , Paris
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35. Technological and non-technological innovation unevenly distributed Patents and trademarks per capita, 2005-07 Average number per million population, OECD and G20 countries
37. (indexed on 1980=1.0, Annex 1 ratification countries) Policy can induce greater innovation Patenting in climate mitigation technologies relative to all sectors
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Notes de l'éditeur
Point that needs emphasizing is that innovation is more than: new knowledge, more the development or application of new technology.
The iPod has been a tremendously successful innovation, but one that relied little on R&D done by Apple but rather on an integration of good ideas from across the globe.
Investments in innovation – broadly defined to include R&D,
Estimates show that intangible investment accounts for up to 1 percentage point of labour productivity growth in Sweden, and just below that in Denmark, Finland, the United Kingdom and the United States. A new OECD project on "New Sources of Growth: Intangible Assets" will enrich the evidence base on this issue. Second, innovation is also essential for emerging economies as they seek to enhance their competitiveness, diversify their economy and move towards activities with more high value added.
Social: -- in many cases market failure is with fundamental, basic R&D which is expensive and risky and thus avoided by firms How to Harness this? Innovation is a powerful engine for development and for addressing social and global challenges. Innovation-led growth can provide the manuverability that will make it easier for governments to address pressing social and global challenges. Moreover, it can do much to help address these challenges at the lowest cost. While not a solution to all the world’s ills, innovation is an important tool that can and should be better utilised.
1970: Invented by Battelle Research Institute in 1970; 1974: Nestle acquired the rights in 1974; 1976 patent; 1982: pilot test in Swiss restaurants flops; decision to go for offices 1986 affliate spun off == physically moved out of Nestleaunch & failure; 1988: new head (Lang) recruited who aims towards direct marketsing to households (avoiding supermarkets) “individualisation” via Nespresso Club 1989: “machine partners” developed (Krups, Philips, Magimiz, Matsushita) Use of word of moth via Nespresso Club instead of media (“fantastic knowledge of customers) (big data) 50% profit margin on the capsules; 3x as expensive as regular expresso coffee 25% AARG since 1988; fastest growth Nestle brand A 1.5b€ revenue stream
Breakthroughs tend to come at the seams of different disciplines and through networks of collaboration; Also underscores the growing complexity of research which requires further co-operation
The key messages of the IS in the current economic context can be summed up quite neatly. In the aftermath of the economic crisis, potential output growth is expected to decline. Policies for innovation may help lift the rate of multi-factor productivity growth and encourage more productive investments. It will also be important to lift labour productivity growth, in the context of declining populations and forecast labour shortages in many countries.
In the aftermath of the economic crisis, potential output growth is expected to decline. Policies for innovation may help lift the rate of multi-factor productivity growth and encourage more productive investments.