INNOVATION AND INCLUSIVE GROWTH

August 2014

Caroline Paunov Dominique Guellec

• Benefits of growth do not automatically trickle down to generate more equal societies

• Inclusive development is also important for policy agendas as inequalities can negatively affect growth

Innovation and Inclusive Growth

→ Innovation policies have been examined to date essentially

with regards to their impact on the growth of aggregate income – what about impacts on inequalities (distributional impacts)?

Innovation and Inclusive Growth

• Innovation is not necessarily “socially” inclusive : they can increase inequalities in income and opportunities of different groups.

• Innovation impacts “industrial inclusiveness”: in many economies “islands of excellence”, very innovative world-leading businesses, sectors, regions, universities, etc. - co-exist with weak performers. These innovation and productivity gaps in turn impact on social inclusiveness.

• Innovation and its policies affect “territorial inclusiveness”: the geographic dimensions of industrial and social inequalities.

The Project in a Nutshell

Project Objectives:

Provide evidence on the effects of innovation and related policies on inclusive development focusing on industrial, social and territorial inequalities

Develop concrete policy solutions to support countries in reconciling their innovation and inclusive development agendas, including options for scaling up inclusive innovations.

Time Period: 2-year project, final publication & conference in early 2015. A follow-up project will be undertaken in 2015-2016.

Country focus for initial phase: Colombia, China, India, Indonesia and South Africa

Organisation: horizontal effort by STI with Directorates for Education, Public Governance and Territorial Development

Project Consultation Mechanisms

Project Advisory Group

• Composition: representative of those countries directly subject of the analysis and volunteered delegates from committees

– Key role of the CSTP as leading Committee of project

• Roles: provide inputs at key stages of the project regarding thematic focus, analyses and policy documents as well as planned outreach activities

Last meetings

Events and Wider Involvement • Events: various thematic and general workshops, including:

• a session of the OECD Global Forum on Development (July 2014)

• the March 2014 Symposium On Innovation And Inclusive Growth (OECD – Growth Dialogue): over 60 participants from 25 organisations in 18 countries .

• Partnering: Confederation of Indian Industries, MEIDE

Conferences, Global Research Alliance, World Bank and the Growth Dialogue

Project Timeline (I)

6

“Incubator phase”:

- Gathering in South Africa (November 2012)

- Background document raising variety of topics (starting point)

“ Project set-up” :

- CSTP project description

- set-up of Advisory Group & larger experts group

- Scoping questionnaire

- Newsletter and network

“Start the analyses”:

- Identify specific projects to respond to Advisory Group questions

- Advisory Group meeting in Istanbul (October 2013)

- Policy framework and background analyses

Project Timeline (II): Next Steps

“Producing the evidence”:

- Identify conclusions based on work conducted

- Consolidate following feedback from experts from March & July 2014 Advisory Group meetings

Presentation of the work to the Committee”:

- Validation and approval by the CSTP, 21-22 October 2014;

- Editing and production of publication

“Final report :

- Synthesize main findings into final publication for December 2014

“Defining the 2015-16 phase of the project” :

- Expansion of the group of countries

- Country policy assessments

- Creation of a community of practice

7

“High-level conference for report launch”:

- Launch of the publication at high-level conference in India in February 2015

Overview of Upcoming Publication: 2 Major Themes

This work analyses impacts on social, industrial and territorial inclusiveness while taking into consideration the role of global trends such as ICTs. It focuses on policy trade-offs and complementarities to identify ways to make innovation policies more inclusive, including from a geographical standpoint. Particular emphasis is put on those policies that strengthen diffusion across the economy.

• 1. Innovation policies and their impact on inclusive growth

• 2.Inclusive innovation

This work examines in which ways inclusive innovation initiatives (innovative products aimed at improving the welfare of lower-income and excluded groups) differ from standard innovations. A major challenge that these initiatives face is how to reach scale. This project identifies common characteristics

of successful inclusive innovation initiatives and complementary policy recommendations to support their scale-up. Moreover, this work explores inclusive innovations for delivering better-quality education to marginalised populations with a view to identify opportunities for policy makers to support the scaling up of successful initiatives of this type.

Summary of Project Framework

Territorial Inclusiveness(Places)

Social inclusiveness

(People)

Industrial inclusiveness

(Firms)

Policies

Characteristics of the

Innovation System

DistributionalImpacts

Policies affecting mainly

industrial inclusiveness

Policies affecting

industrial and social

inclusiveness

Policies affecting mainly social inclusiveness

More on the Project

• The latest developments of the project, news and upcoming events are posted on http://oe.cd/inclusive

• For more information or to sign up for the project newsletter, contact Ms. Caroline Paunov at caroline.paunov@oecd.org