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

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Session 1b: Overview of the publications’ main messages

(Document: Innovation for Inclusive Growth)

Innovation matters for inclusive growth

• Growth is not necessarily inclusive nor

complete solution for addressing poverty and exclusion

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• Innovation is relevant

because:

• A. “Disruptive” nature of

innovation with effects on distribution

• B. Innovation can be a

solution: “inclusive innovations”

Three trends drive impacts

Information and Communication Technologies Labour demand effects depending on education & nature of changes (automatisation / work reorganisation)

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Knowledge Economy Changing role of capital depending on capital / input needs for innovation Growing Emerging Markets Changing demand for types of innovations & contributions depending on type of bias in innovations

Industrial and territorial inclusiveness: dispersion is substantial

• “Islands of

excellence” whether firms, industries, universities, territorial exist everywhere …

• R&D activity

support growth of leading regions !

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87 83 81 73 73 72 65 64 64 64 62 60 57 55 54 52 51 49 49 45 44 42 30 26 20 40 60 80 100 Turkey Canada Australia Chile China (TL2) United States Finland Greece Spain Brazil (TL2) Mexico India (TL2) France Sweden Korea Netherlands Portugal Japan South Africa (TL2) United Kingdom Austria Germany Czech Republic Ireland

%

• Industrial and territorial dispersion in performance

National patent concentration by top 10% of TL3 regions, average 2008-10 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”

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“Trickle-down” dynamics

• Contributions of “islands”

for remainder

• “Absorptive” capacities
• Linkages with remainder

Policies for industrial inclusiveness

• Focus of policies on open

“excellence” vs. creating “level-playing field” = relative balance matters, not setting criteria for excellence

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• 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”

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Inclusive Innovations as a solution

Mobile money 3D printing from waste 2000$ car “Assembly line” cataract

• perations

Fuel from waste Community phone shop Products Services Well-being Entrepreneurship Off the grid electricity Pedal washing machine

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”

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Requirements for scale and policy

• Scale success requires

– Correctly understanding demand of the poor – Innovation! – Private businesses involved in steering – Taking advantage of infrastructures – “Pragmatic” regulation (esp. public services)

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Policy responses

• Consultation

processes involving the poor

• Governmental co-
• peration
• Regulatory efforts
• Evaluation (&

measurement) efforts

Reaching “open excellence” for the benefit of all?

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