innovation and inclusive growth 1b_ paunov_inclusive present… · community phone shop products...
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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)
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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”
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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
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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
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0 20 40 60 80 100
TurkeyCanada
AustraliaChile
China (TL2)United States
FinlandGreece
SpainBrazil (TL2)
MexicoIndia (TL2)
FranceSweden
KoreaNetherlands
PortugalJapan
South Africa (TL2)United Kingdom
AustriaGermany
Czech RepublicIreland
%
• 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
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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
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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
operations
Fuel from waste
Community phone shop
Products
Services
Well-being
Entrepreneurship
Off the grid electricity
Pedal
washing
machine
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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-operation - Regulatory efforts - Evaluation (& measurement) efforts
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Reaching “open excellence” for the
benefit of all?
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