Mexico and ChinaMexico and ChinaEducation and Education and

Science & Technology PoliciesScience & Technology PoliciesIn perspective with OECD countriesIn perspective with OECD countries

Comments to panel contributions from:Comments to panel contributions from:

José Antonio ArdavínJosé Antonio ArdavínActing HeadActing Head

OECD Mexico Centre for Latin AmericaOECD Mexico Centre for Latin America

Seminar “Towards a dialogue between China and Mexico: three and two decades of transformations and structural

socioeconomic changes”9 September 20099 September 2009

Some of the recent OECD studies on Mexico’s and China’s Innovation Policies

MEXICO

Avaliable in www.oecdilibrary.org

Summarizing the pannel interventions, a number of key issues:

• Innovation and growth• Strategic policies• Speed of change• Creation and circulation of talent• Regional Dimension

Innovation has become the key driver of economic growth and improvement in quality of life…

Source: OECD Mexico Economic Survey 2007

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Indi

a

Chin

a

Braz

il

Chile

Mex

ico

Pola

nd

Kore

a

Spai

n

OEC

D

USA

PPP (constant 2005 USD)

1987 2007

0

100

200

300

400

500

600

Chin

a

Kore

a

Indi

a

Chile

Pola

nd

Spai

n

OEC

D

USA

Mex

ico

Braz

il

1987=100

1987 2007

0

1

2

3

4

5

6

7

8

9

10

Chin

a

Kore

a

Indi

a

Chile

Pola

nd

Spai

n

OEC

D

USA

Mex

ico

Braz

il

Average Growth Rate

1987-1997 1997-2007

GDP per capita

“Most of the rise in material standards of living since the industrial revolution has been the consequence of innovation. New or improved products and services have for a long time been the main motor of economic growth.” (Going for Growth, OECD 2006)

Source: The Knowledge Economy, the Kam methodology and World Bank operations. Derek C. Chen and Carl J. Dahlman

OECD countries invest on average 2.2% of GDP in R&D

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009Science and technology - Research and Development (R&D) - Expenditure on R&D

Gross domestic expenditure on R&D

As a percentage of GDP

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.02007 or latest available year 1998 or first available year

China and Mexico, as developing countries have an important road to go…

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009Science and technology - Research and Development (R&D) - Researchers

Researchers

Per thousand employment, full-time equivalent on R&D

0

3

6

9

12

15

182007 or latest available year 1998 or first available year

…but speed is an very important variable…

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009Science and technology - Research and Development (R&D) - Researchers

Growth in gross domestic expenditure on R&D1998 or first available year - 2007 or latest available year

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

…and strategic policies

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009Science and technology - Research and Development (R&D) - Researchers

Growth in number of researchers per thousand employment, full-time equivalent on R&D1998 or first available year - 2007 or latest available year

-50%

0%

50%

100%

150%

200%

…and strategic policies

Source: OECD Reviews of Innovation Policy China (2008)

…and strategic policies

Source: OECD Reviews of Innovation Policy China (2008)

…oriented to achieve results

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009

Science and technology - Communications - Exports of information and communications equipment

Exports of ICT equipmentBillion US dollars

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

China

United States

Japan

Germany

United Kingdom

Mexico

FDI vs FDI+

OECD Factbook 2009, Dinamic Graphs using Trendalyser

Paradoxically FDI in Mexico is not leading to the desired spillovers, as S&T expenditures highest

among manufacturing domestic firms

Source: OECD Regional Innovation Reviews: 15 Mexican States based on Dussel-Peters for the OECD based on data from INEGI

Big Manufacturing Firms by FDI share, 2003

Talent is the key input for innovation…

Percentage of patents with foreign co-inventors

…and talent is created through a system of quality education…

OECD Factbook 2009: Economic, Environmental and Social Statistics - ISBN 92-64-05604-1 - © OECD 2009Education - Outcomes - International student assessment

Performance on the science scale in PISA 2006Mean scores

350

375

400

425

450

475

500

525

550

575

600

625

650

Above the OECD average

Below the OECD average

OECD average in science : 500

High level innovation requires high level, competitive talent

Education at a Glance 2009: OECD Indicators - OECD © 2009 - ISBN 9789264024755Indicator A4 Indicator A4: What is the profile of 15-year-old top performers in science?Version 1 - Last updated: 19-Aug-2009

Chart A4.1. Percentage of top performers on the science scale in PISA 2006

Source : OECD PISA 2006 Database, Table A4.1a.

The chart depicts the proportion of top performers in science defined as those 15-year-old students who are proficient at Levels 5 and 6 on the PISA 2006 science scale and indicates near the country name the score in science for each country.

0

5

10

15

20

Finl

and

563

New

Zea

land

530

Hon

g Ko

ng-C

hina

542

Japa

n 5

31Ch

ines

e Ta

ipei

532

Aust

ralia

527

Cana

da 5

34U

nite

d Ki

ngdo

m 5

15N

ethe

rland

s 5

25Sl

oven

ia 5

19Li

echt

enst

ein

522

Ger

man

y 5

16Cz

ech

Repu

blic

513

Esto

nia

531

Switz

erla

nd 5

12Ko

rea

522

Belg

ium

510

Aust

ria 5

11Ire

land

508

Uni

ted

Stat

es 4

89O

ECD

aver

age

500

Fran

ce 4

95Sw

eden

503

Hun

gary

504

Denm

ark

496

Pola

nd 4

98Ic

elan

d 4

91N

orw

ay 4

87Lu

xem

bour

g 4

86Sl

ovak

Rep

ublic

488

Mac

ao-C

hina

511

Isra

el 4

54Cr

oatia

493

Lith

uani

a 4

88Sp

ain

488

Italy

475

Russ

ian

Fede

ratio

n 4

79La

tvia

490

Gre

ece

473

Port

ugal

474

Bulg

aria

434

Chile

438

Uru

guay

428

Turk

ey 4

24Se

rbia

436

Jord

an 4

22Br

azil

390

Rom

ania

418

Arge

ntina

391

Thai

land

421

Qat

ar 3

49M

onte

negr

o 4

12M

exic

o 4

10Co

lom

bia

388

Tuni

sia 3

86Az

erba

ijan

382

Indo

nesi

a 3

93Ky

rgyz

stan

322

Level 5 Level 6

Talent is attracted to regions...

Shanghai aims to increase R&D intensity to 3.5% by 2020

Source: Science & Technology Commission of Shanghai Municipality (STCSM), October 2006

…but policies and structure of incentives can also lead to concentration of inputs of innovation…

Source: INEGI 2008Source: OECD Reviews of Regional Innovation: 15 Mexican States, (2009)

…Producing limited and concentrated innovation, translating into low technological output…

Source: own calculations based on INEGI Economic Survey 2004Source: OECD Reviews of Regional Innovation: 15 Mexican States, (2009)

… and limited knowledge generation

Source: own calculations based on OECD Regional Database

Source: OECD Reviews of Regional Innovation: 15 Mexican States, (2009)

Challenges

• Fostering innovation is more than investing in R&D, patenting, etc…– Creating framework conditions– Investing in inputs of innovation (human capital)– Addressing systemic failures

• Financing• Training• Competition• Intellectual property rights• Barriers to entrepreneurship• Technology brokers• Corporate governance• Industry-Science linkages

Mexico and ChinaMexico and ChinaEducation and Education and

Science & Technology PoliciesScience & Technology PoliciesIn perspective with OECD countriesIn perspective with OECD countries

Comments to panel contributions from:Comments to panel contributions from:

José Antonio ArdavínJosé Antonio ArdavínActing HeadActing Head

OECD Mexico Centre for Latin AmericaOECD Mexico Centre for Latin America

www.oecd.org/centrodemexico