promoting catch-up innovations – the role of trade and investment
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Promoting catch-up innovations – the role of trade and investment. Michiko ENOMOTO Economic Cooperation and Integration Division /UNECE Geneva, 31 May 2013. Why do we promote innovation? . Economic crisis Environmental challenges - PowerPoint PPT PresentationTRANSCRIPT
Promoting catch-up innovations – the role of trade and investment
Michiko ENOMOTO Economic Cooperation and Integration Division/UNECE
Geneva, 31 May 2013
Why do we promote innovation?
Economic crisisEnvironmental challenges
Innovation and new technologies play a decisive role:economic and social development, economic growth, improved productivity and competitiveness, and improved quality of life.
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What is innovation?
Not only results of R & D…
But also implementation of new or greatly improved product (good or service), or process, new marketing method, or new organisational method in business practices, workplace organisation or external relations.
Definition (OECD Oslo Manual)
Kyrgyzstan and TajikistanInnovation landscape
Source: The Global Innovation Index 2012, INSEADSource: The Global Innovation Index 2012, INSEAD
Frontier innovations
Frontier innovations - new to world knowledge
Most take place in high-income countries
R & D in firms plays major role.
Catch-up innovations and technology absorption
Catch-up innovations – new to country/firm
To acquire, adapt and use existing knowledge---less costly and less risky than creating new
Successful emerging economies imported what the rest of the world already knew; improved it, and exported it in a form the rest of the world wanted
Strong absorptive capacity made this possible
Government as gardener
• Discovery and importing seeds • Access to information, diaspora, open trade
• Planting seed and growing plants • Joint ventures, FDI
• Watering • Financing
• Preparing ground = good absorption capacity• Good education, entrepreneurship, basic technological
literacy• Removing weeds
• Poor business environment• Improvement of the seed
• Catch-up innovation – R & D.
How to grow innovation plants?
How to foster catch-up innovations and to stimulate technology absorption?
Access: Open trade (imports)Information and Communication Technology policiesInternational collaboration in research networksDiaspora
Business facilitation: Ease of business, foreign direct investment, labour mobility.
How to foster catch-up innovations and to stimulate technology absorption?
Intellectual Property Rights legislation and enforcement
Public procurement, standards and regulations
Support for finance to early adopters/demonstrators.
How to increase absorptive capacity?
Empowerment of local human resources:
Education and life-long learning policies
Enterprise-based worker training, management and entrepreneurship training
Technical and vocational education and training.
How to increase absorptive capacity?
Facilitate network with global suppliers
Develop linkages to global value chains
Rule of law, contract enforcement, competition
Bankruptcy and re-entry facilitation
Policies to attract and retain talented workers.
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UNECE Innovation Performance Reviews
Policy recommendations
• stimulate innovation activity in the country• enhance innovation capacity • improve the efficiency of the national
innovation system
Follow-up and capacity-building activities to support implementation.
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Green technologiesUNDA project "Building the capacity of SPECA countries to adopt and apply innovative green technologies for climate change adaptation“
• How to integrate environmental concerns into innovation policies?
• How to mobilise the financing to introduce green technologies (PPP)?
• How to bring together all stakeholders to make changes?