4. 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
5. 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)
6. May 2015: Publication
The “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.
The Project Timeline (2/3)
7. October 2015: Ministerial Meeting of the OECD Committee for
Scientific and Technological Policy (CSTP), Korea
The 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
The Project Timeline (3/3)
April 2016: Symposium on Technology,
Innovation and Inclusive Growth: Future
Perspectives
Organised jointly with World Bank and the Growth
Dialogue
8. 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?
9. 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.
10. Overview of the 2015 Report
“Innovation Policies for
Inclusive Growth”
11. 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”.
12. 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. 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
14. Scaling Up Inclusive Innovations :
In OECD context
Crowdfunding
“Sharing economy”
Low cost
15. 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. 16
Scaling Up Inclusive Innovations :
Missing scale
Mobile money
“Assembly line” cataract surgeries
Community phone shop Adapted
curriculum
17. Scaling Up Inclusive Innovations :
Missing scale
Globalization, emerging economies and ICT
Emerging economies’ middle
class
Number of Inclusive innovations
introduced by firms
Social inclusiveness
Reduced development costs of
inclusive innovations
Missing scale
Demand factors Supply factors
Characteristics
Challenges
Missing scale
18. Scaling Up Inclusive Innovations :
Characteristics & Challenges
Informality reduces access to public
service
Uncertainty about uptake
Types and costs of
innovations
Access to expertise,
knowledge
and 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
19. Scaling Up Inclusive Innovations :
Rationale for policy intervention
Globalization, emerging economies and ICT
Emerging economies’ middle
class
Number of Inclusive innovations
introduced by firms
Social inclusiveness
Reduced development costs of
inclusive innovations
Missing scale
Demand factors Supply factors
Characteristics
Challenges
Missing scale
20. Policies in Support of Inclusive
Innovation: Actors
The poor
Grassroot innovators
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 development
agencies
Microfinance 20
21. 21
Policies in Support of Inclusive
Innovation
Informality constraints
Uncertain uptake
Types and costs of
innovations
Access to expertise,
knowledge
and finance
Information about consumer
needs
Market conditions for firms
Low access to traditional
loans
Lack of financial
inclusion
Low access to
knowledge networks
Regulatory constraints
Governmental co-operation
Policy response
Missing infrastructure
Characteristics Challenges
Co-operation across actors
22. Governmental Cooperation
The poor
- Grassroot innovators
- 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 development
agencies
- Microfinance
22
Coordination
within
government
institutions
Horizontal (between
ministries)
Vertical (local
governments)
“Social Innovation Policy” (Colombia)
• A cross-cutting policy between different national institutions:
• 6 regional nodes
23. Fostering Cooperation Between Actors
The poor
- Grassroot innovators
- 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 development
agencies
- 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
24. Policies in Support of Inclusive
Innovation
Financial support
24
Informality constraints
Uncertain uptake
Types and costs of
innovations
Access to expertise,
knowledge
and finance
Information about consumer
needs
Market conditions for firms
Low access to traditional
loans
Lack of financial
inclusion
Low access to
knowledge networks
Regulatory constraints
Governmental co-operation
Policy response
Missing infrastructure
Characteristics Challenges
Co-operation across actors
25. Financial Support
The poor
- Grassroot innovators
- 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 development
agencies
- Microfinance institutions
25
Financial Support
- Public- Private
Partnerships (South Africa)
- World Bank Viet Nam
Inclusive Innovation
Project
26. Financial support
26
Informality constraints
Uncertain uptake
Types and costs of
innovations
Access to expertise,
knowledge
and finance
Information about consumer
needs
Market conditions for firms
Low access to traditional
loans
Lack of financial
inclusion
Low access to
knowledge networks
Regulatory constraints
Governmental co-operation
Policy response
Missing infrastructure
Characteristics Challenges
Co-operation across actors
Policies in Support of Inclusive
Innovation
Regulatory Framework
M-Pesa
• Better penetration than banking
in Kenya
• Could not develop in South Africa
due to stricter regulation
27. Financial support
27
Informality constraints
Uncertain uptake
Types and costs of
innovations
Access to expertise,
knowledge
and finance
Information about consumer
needs
Market conditions for firms
Low access to traditional
loans
Lack of financial
inclusion
Low access to
knowledge networks
Regulatory constraints
Governmental co-operation
Policy response
Missing infrastructure
Characteristics Challenges
Co-operation across actors
Policies in Support of Inclusive
Innovation
Regulatory Framework
30. Innovation – Growth Nexus
Globalization, emerging economies and ICT
Democratization
of innovation
Social inclusiveness
Increasing role of
innovation for
growth
Islands of
excellence /
laggards
Territorial and industrial
inclusiveness
-
Emerging
economies’
middle class
Number of Inclusive innovations
Reduced
development costs of
inclusive innovations
Missing scale
Demand factors
Supply factors
+
31. Innovation – Growth Nexus
Globalization, emerging economies and ICT
Emerging
economies’
middle class
Number of Inclusive innovations
Democratization
of innovation
Social inclusiveness
Increasing role of
innovation for
growth
Islands of
excellence /
laggards
Reduced
development costs of
inclusive innovations
Missing scale
Demand factors
Supply factors
Territorial and industrial
inclusiveness
- +
32. Concentration of Innovation
Globalization, emerging economies and ICT
Emerging
economies’
middle class
Number of Inclusive innovations
Social inclusiveness
Increasing role of
innovation for
growth
Islands of
excellence /
laggards
Reduced
development costs of
inclusive innovations
Missing scale
Demand factors
Supply factors
Territorial and industrial
inclusiveness
-
33. Democratisation of Innovation
Globalization, emerging economies and ICT
Emerging
economies’
middle class
Number of Inclusive innovations
Democratization
of innovation
Social inclusiveness
Increasing role of
innovation for
growth
Islands of
excellence /
laggards
Reduced
development costs of
inclusive innovations
Missing scale
Demand factors
Supply factors
Territorial and industrial
inclusiveness
- +
34. Innovation Policies and Inclusiveness
Globalization, emerging economies and ICT
Emerging
economies’
middle class
Number of Inclusive innovations
Democratization
of innovation
Social inclusiveness
Increasing role of
innovation for
growth
Islands of
excellence /
laggards
Reduced
development costs of
inclusive innovations
Missing scale
Demand factors
Supply factors
Territorial and industrial
inclusiveness
- +
36. 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: caroline.paunov@oecd.org
Sandra Planes-Satorra: sandra.planessatorra@oecd.org
• Find out more about the report at
http://oe.cd/inclusive-inno-report
Notes de l'éditeur
MSMEs, large corp., MNEs, state enterprise
Add edu example
Add other socio-economic dimensions to income deprivation
Examples:
Health Education Standard of living (measured by the access and availability of basic needs, such as water, electricity or toilet) Jobs and earnings
Housing Social connections Security Environment
Sharing economy: concept of individuals being able to borrow assets from each other or company through (IT) platform (eradication of intermediaries)
Define scale
Department of Science, Technology and Innovation (Colciencias)
National Planning Commission (DNP)
National Agency for Overcoming Extreme Poverty (ANSPE)
Animations to be added
Department of Science, Technology and Innovation (Colciencias)
National Planning Commission (DNP)
National Agency for Overcoming Extreme Poverty (ANSPE)
A bit under 86 000 USD – 19 May 2014 XE
Animations to be added
Money laundering regulation
Money laundering regulation
Zooming out a broader question is this of innovation as a critical driver of growth and impact of such growth on inclusiveness
Growth is critically important and can contribute to social inclusiveness, notably by generating employment.
Process of creative destruction
Impact on industrial and territorial inclusiveness
Impact on inclusive growth depends on how it connects with the rest of the economy.
In 2010, the top 40 OECD regions (out of almost 1 700 Territorial Level 3 regions with data) represented one-third of all scientific publications (OECD, 2013b). A similar picture of concentration emerges for regional shares of R&D expenditure (Figure 4.6) (OECD, 2013d).
A small share of ideas have high value. Marginal costs are low (non-rival and partially non excludable) low marginal costs and easlily capture entire markets
Agglomeration benefits arise (sharing, matching, learning) and do not create opportunities beyond locally.
The “democratisation of innovation” refers to the widening of the group of successful
innovators to include actors who did not previously participate in innovation processes –
particularly smaller entities, i.e. individuals, firms and entrepreneurs from a variety of
backgrounds that are typically considered outsiders – and have opportunities to succeed
with bottom-up initiatives.
Product distribution has become cheaper, reducing the cost of launching innovations amazon app stores
Innovation-related production costs have decreased in some sectors.
The risks and time span between product development and market launch have decreased for certain innovations.
The demand for innovation can be assessed more easily.
Using the Internet facilitates access to knowledge for innovation. Evidence shows these benefits arise particularly for businesses in developing countries
The latter relates to trickle down dynamics
Impact on industrial and territorial inclusiveness
Impact on inclusive growth depends on how it connects with the rest of the economy.
Industrial and territorial inclusiveness will also depend on policies that generate a favourable environment for innovation, the diffusion of innovation and other framework conditions.
Exclusion effects
Interaction effects
Business conditions
Regional dimension