G20 Innovation Report 2016

G20
INNOVATION
REPORT
2016
Report prepared for the
G20 Science, Technology
and Innovation
Ministers Meeting
BEIJING, CHINA,
4 NOVEMBER 2016

ThisreportoftheOrganisationforEconomicCooperationandDevelopmenthasbeenpreparedat
the request of G20 Leaders (Hangzhou Summit Communique, 45 September 2016). An initial
prototypewaspreparedfortheThirdG20SherpaMeetinginXiamen,China,2325June2016.
ThisreportisbasedonmaterialfromtheOECD'sScience,TechnologyandIndustryScoreboard2015(with
dataupdateswhereavailable)andtheforthcomingScience,TechnologyandInnovationOutlook2016.
ThelatterpublicationbenefitsfrompolicyinformationgatheredviathejointEuropeanCommission/
OECDInternationalSurveyonScience,TechnologyandInnovationPolicy(STIP).
The opinions expressed and the arguments employed herein do not necessarily reflect the official
viewsofOECDcountries.
Thisreportandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyover
anyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofany
territory,cityorarea.
2016
G20 INNOVATION REPORT 2016
TABLE OF CONTENTS
PART1:SELECTEDINNOVATIONINDICATORS................................................5
Emergingplayersinthesciencelandscape........................................................................................6
MonitoringSTIperformanceandprogress.........................................................................................7
Fundinglongterm,higherriskresearch............................................................................................8
Innovationforglobalchallenges.........................................................................................................9
EnablingtheNextIndustrialRevolution...........................................................................................10
Addressingcommonchallengesthroughinternationalcooperationinscienceandinnovation...11
Raisingthequalityofscience............................................................................................................12
Promotingexcellence........................................................................................................................13
Nurturingtalentandskills.................................................................................................................14
Investinginscientistsandengineers................................................................................................15
Promotingstudentexchanges..........................................................................................................16
Facilitatingresearchermobility........................................................................................................17
Promotingcollaborationininnovationamongfirms........................................................................18
Supportingbusinessinnovation........................................................................................................19
Fosteringentrepreneurship..............................................................................................................20
Empoweringsocietywithscienceandtechnology...........................................................................21
PART2:COUNTRYPROFILES........................................................................23
Argentina...........................................................................................................................................24
Australia............................................................................................................................................26
Brazil..................................................................................................................................................28
Canada..............................................................................................................................................30
China.................................................................................................................................................32
OECD, 2016 3
France................................................................................................................................................34
Germany............................................................................................................................................36
India..................................................................................................................................................38
Indonesia...........................................................................................................................................40
Italy...................................................................................................................................................42
Japan.................................................................................................................................................44
Korea.................................................................................................................................................46
Mexico...............................................................................................................................................48
RussianFederation............................................................................................................................50
SouthAfrica.......................................................................................................................................52
Turkey...............................................................................................................................................54
UnitedKingdom................................................................................................................................56
UnitedStates.....................................................................................................................................58
EuropeanUnion................................................................................................................................60
Readersguide...................................................................................................................................62
FURTHERREADING......................................................................................63
4 OECD, 2016
Part 1
SELECTED INNOVATION INDICATORS
The indicators presented here of science and innovation in the global economy highlight
G20 economies performance in a selection of areas, and track discussions and comments
madebytheG20InnovationTaskForce.Theyaremainlybasedonindicatorscontainedinthe
OECDScience,TechnologyandIndustryScoreboard2015.ThenextOECDSTIScoreboardpublication
willbereleasedin2017.
Indicatorsarepresentedforthefollowingtopics:
Emergingplayersinthesciencelandscape Nurturingtalentandskills
MonitoringSTIperformanceandprogress Investinginscientistsandengineers
Fundinglongterm,higherriskresearch Promotingstudentexchanges
Innovationforglobalchallenges Facilitatingresearchermobility
EnablingtheNextIndustrialRevolution Promotingcollaborationininnovation
Addressingcommonchallengesthrough amongfirms
internationalcooperation Supportingbusinessinnovation
inscienceandinnovation
Fosteringentrepreneurship
Raisingthequalityofscience Empoweringsocietywithscience
Promotingexcellence andtechnology
Emerging players in the science landscape

Facedwithmajoreconomic,societalandenvironmentalchallengesatatimewhenbudgetsareunderpressure,
policymakerslookforevidencetohelpthemguideeffortstoensurethatinvestmentsinscienceandresearch
helpimprovepeopleslives.
TheUnitedStatesistheworldslargestR&Dperformer,withnearlyUSD433billionofdomesticR&Dexpenditures
in2013.ThisexceedsbyaboutonequartertheamountofR&DperformedinthePeoplesRepublicofChina
(hereafter China), the secondlargest performer, which is broadly on par with the combined EU28 area.
AmongtheG20,KoreahasthehighestratioofR&Dexpenditurestogrossdomesticproduct(GDP)owingto
rapidincreasesinrecentyears.EmergingG20economiesaccountforagrowingshareoftheworldsR&D.
Increasing national investment in R&D requires the combination of public and private efforts. In the more
developedeconomies,thebusinesssectoraccountsforthelargestshareofR&Dspending.Here,itismostly
directedtowardsdevelopingnewproductsandprocessestointroduceinthemarket,buildingonexistingand
developingnewknowledge.Governmentsandhighereducationinstitutionsplayakeyroleindevelopingboth
fundamentalandappliedknowledgethatprovidesthebasisrequiredformajor,paradigmchangingbreakthroughs.
However,excessiverelianceonpublicsectorinvestmentcanpreventeconomiesfromreapingtheeconomic
benefitsofknowledgeinvestments.Overall,thecrosscountryrelationshipbetweenR&Dintensityandbusiness
financingofR&DexpendituresuggeststhathighlevelsofeconomywideR&Dinvestmentarenotattainable
withoutastrongprivatesectorcommitment.
Figure 1. R&D in selected G20 economies, 2013

Gross domestic expenditures on
R&D as a percentage of GDP
4.5
R&D expenditures in 2010 USD - constant
prices and PPP OECD average = 60.9% KOR
1 billion
4.0
10 billion
JPN
3.5
100 billion
3.0
G20 countries DEU

USA
Non-G20 OECD countries
2.5
OECD average = 2.4% FRA

AUS
2.0 CHN
GBR EU28
CAN
1.5
ITA
RUS
BRA
1.0 TUR
ARG
ZAF
0.5
MEX
0.0
0 10 20 30 40 50 60 70 80 90 100
Percentage of GERD financed by industry

Sources:OECD,MainScienceandTechnologyIndicatorsdatabase,January2016,www.oecd.org/sti/msti.htm;dataforBrazilfromUNESCO
InstituteforStatistics,November2015.
WHAT DO WE MEAN BY R&D?

AsdefinedintheOECDsFrascatiManual(http://oe.cd/frascati),R&Dcomprisesbasicresearch(aimedatcreatingnewknowledge
with no specific application in view), applied research (new knowledge towards a specific practical aim) and experimental
development(todevelopnewproductsorprocesses).OECDdatashowthatbusinessesarefarmorelikelytoinvestindevelopment
than in research. The Frascati Manual recommends reporting separately the performance and funding of R&D, grouped by
"broad" sectors that include business, higher education, government and other nonprofits. Business or industry funding of
R&DcomprisestheportionofR&Dcarriedoutwithinanysectoroftheeconomythatisdirectlyfundedbyresidentbusinesses.
Typically, the share of R&D financed by industry is less than the share of R&D performed by firms in this sector, but this
excludesthefinancingofR&Dperformedabroad,includingbyaffiliates.
6 OECD, 2016
Monitoring STI performance and progress

Many OECD countries and G20 economies have adopted quantitative targets to benchmark their science,
technologyandinnovation(STI)performanceandprogress,especiallythroughtargetsforR&Dspending.The
targetvolumeofR&DexpenditureisoftenexpressedasapercentageofGDP.
With STI budgets under pressure, many governments capacity to drive further increases in domestic R&D
expenditureislimited.ThegapbetweenoverallstrategicR&DspendingtargetsandcurrentR&Dexpenditure
inmostcasesremainstoolargetobeclosedbytheforeseendate.Therelevanceandfeasibilityoftargetsalso
largelydependsonthestructureofeconomiesandtheirpositioninginglobalvaluechains,asindustriesdiffer
intheirpropensitytocarryoutR&D.IntheG20,theindustrialstructurevariesconsiderablyfromservicebased
economies to manufacturing or resourcebased ones. The innovation potential of economies with different
sectoralprofilesmaybemoreresponsivetoformsofknowledgebasedcapital,i.e.innovationassetsbeyond
R&D,thuslimitingthepotentialrelevanceoftheR&Dintensitytarget.
Figure 2. National R&D expenditure targets and gap with current levels of GERD intensity,
G20 economies, 2014
As a percentage of GDP
2004 2014 National target

%
5
Countries with R&D intensity targets Countries with no R&D intensity target
4.5
2020
4
3.5
2020 indef. 2020 2020 2023
3
2020
2.5
2019 indef.
2015
2 2020
1.5
indef.
1
0.5

Note:indef.isanabbreviationforindefiniteornofixedenddateforreachingthetarget.
Sources: OECD, Main Science and Technology Indicators database, www.oecd.org/sti/msti.htm, January 2016; data for Brazil, India,
IndonesiaandSaudiArabiafromUNESCOInstituteforStatistics,November2015;dataonnationalR&Dtargetsfromcountryresponsesto
OECDSTIOutlookpolicyquestionnaire2014andnationalsources(Brazil).
R&D TARGETS
InformationonR&DtargetsisderivedfrominformationcollectedthroughthequestionnairefortheOECDScience,Technology
andInnovationOutlook.GrossdomesticexpenditureonR&D(GERD)isthemainaggregateusedforinternationalcomparisons
of R&D expenditures. For comparisons and target setting, GERD is typically normalised by the level of economic activity as
percentageofGDP,andthisisreferredtoastheR&Dintensityofaneconomy.DataonGERDarecollectedthroughsurveysof
R&Dperforminginstitutionsandfirms.DespitecommonreferencereportingguidancetheOECDsFrascatiManualnational
R&Dsurveysoftenfollowdifferentsamplingandestimationmethods.
OECD, 2016 7
Funding long-term, higher-risk research

Aswithothertypesofinvestment,expendituresinR&Dandinnovationareprocyclicaltheyarepositively
relatedtoaneconomyslevelofactivity.Inrecentyears,governmentbudgetsforR&Dhavestartedtoleveloff
orevendeclineinmanyOECDandG20economies.Insomecases,thishasbeenpartlyduetothereorientation
ofpublicsupporttootherinnovationsupportinstruments,suchasR&Dtaxincentives.
RapidincreasesinpublicR&Dfunding,potentiallyfollowedbyperiodsofrapidcuts,mayhaveadeleterious
impact on the performance of the science system by creating adjustment problems and discouraging long
term planning. Severe adjustments can have a particularly marked impact among younger and nontenured
researchpersonnel,especiallyifthereislimitedabsorptivecapacityintheprivatesector.Researchactivities
subjecttomeritbasedcompetitivefundingcanbearadisproportionateshareofcutswhentherearerigidities
inpublicresearchsystems,whichcanthencompromisescientificexcellence.
Figure 3. Government R&D budgets, selected G20 economies, 2008-2015

Index 2008 = 100
PANEL A: Countries where government-funded R&D has grown since 2008
Index 2008 =100

180
170
Russian Federation
160
150 Turkey
Korea
140 Argentina
130
120 Mexico Germany
110
Australia
100
90
2008 2009 2010 2011 2012 2013 2014 2015
PANEL B: Countries where government-funded R&D has declined since 2008
Index 2008 =100

115
110
105
100 Japan
United Kingdom
EU28
95
Canada
90
United States
85
80
Italy France
75
2008 2009 2010 2011 2012 2013 2014 2015
Source: OECD, calculations based on Main Science and Technology Indicators database, www.oecd.org/sti/msti.htm and Research and
DevelopmentStatisticsdatabasewww.oecd.org/rds,January2016.
HOW DO WE MEASURE GOVERNMENT DIRECT SUPPORT TO R&D?

Government budgets for R&D provide timely estimates of government direct support for R&D as recognised in budgetary
information.FundingmaybeallocatedforR&Dtobecarriedoutinsubsequentyears.ForanumberofG20economies(suchas
China)itisnotpossibletoreportbudgetarysupportforR&DseparatelyfromotherpublicinvestmentsinSTI.Detaileddataon
budgets from R&D, also by socioeconomic objectives, are available from the OECDs Research and Development Statistics
database(www.oecd.org/sti/rds.htm).
8 OECD, 2016
Innovation for global challenges

Longterm,higherriskresearchleadstothedevelopmentoffrontiertechnologiesanddatadrivenapplications
thatareneededtohelptackleglobalchallenges.Recenttechnologydevelopmentshavefocusedonglobalissues
(climatechange,ageingsocieties,foodsecurity),onproductivitygrowth(e.g.newmanufacturingprocesses),
andonenvironmentalandsocialconcernsthatraisespecificchallengesandopportunitiesforSTIpolicies.
While the UnitedStates and the EuropeanUnion (EU) continue to play a leading role in health innovation,
ageingrelatedchallengeshaveledtoincreasesinpatentfilinginthisareainJapanandmostG20Asianeconomies,
includingKorea,ChinaandIndia.Forenvironmentaltechnologies,EUcountriesincreasedtheirpatentingactivity
andaccountedfor28%oftotalapplicationsin201013,whileJapanandtheUnitedStatesexperiencedarelative
declineinthefield,linkedtoincreasedactivitiesinAsia,especiallyinKoreaandChina.TheG20accountedforover
90%ofworldhealthrelatedandclimatechangemitigationtechnologiesIP5(seebelow)patentfamiliesin201013.
Figure 4. Health-related patents, 2000-03 and 2010-13, G20 economies

Share of G20 economies in IP5 patent families
Medical technologies Pharmaceuticals Health-related patents, 2000-03
% Top 10 % Other G20 countries

42 1 0.8
35
30
0.8
25
0.6
20
15 0.4
10
0.2
5
0 0

Figure 5. Patents in climate change mitigation (CCM) technologies, 2000-03 and 2010-13, G20 economies
Share of G20 economies in IP5 patent families
Enabling technologies in the energy sector Renewable energy generation Energy generation from non-fossil sources
Other CCM technologies Patents in CCM technologies, 2000-03
% Top 10 % Other G20 countries
36 0.8
30 0.6
25 0.5
20 0.4
15 0.3
10 0.2
5 0.1
0 0

Source:OECD,STIMicrodataLab:IntellectualPropertydatabase,http://oe.cd/ipstats,June2015.
DEFINING THE TECHNOLOGIES

Datasuppliedbydifferentpatentauthoritiescanbeusedtofollowthedevelopmentanddiffusionofkeyenablingtechnologies.Statistics
arecompiledusinginformationonpatentfamilieswithintheFivelargestIPoffices(IP5,i.e.USPTO,EPO,SIPO,JPOandKIPO),withpatent
familymembersfiledattheEuropeanPatentOffice(EPO)orUSPatentandTrademarkOffice(USPTO)andattributedtoeconomies
onthebasisoflocationofthepatentowner.Thisapproachmaximisescomparabilityintermsoftheprospectivevalueofinventions.
Healthrelated patents are identified in line with the 2013 WIPO concordance. Pharmaceutical patents are filed under Class
A61KoftheInternationalPatentClassification(IPC),excludingA61K8/*(cosmetics).MedicaltechnologypatentsrelatetoIPC
Classes A61 (B, C, D, F, G, H, J, L, M, N) and H05G. Environmental technology patents are identified using refined search
strategiesbasedontheIPCandtheCooperativePatentClassification(CPC),anddrawupontheexpertiseofpatentexaminers
attheEPO,asdescribedatwww.oecd.org/env/consumptioninnovation/indicator.htm.
OECD, 2016 9
Enabling the Next Industrial Revolution

The Next Industrial Revolution refers to a range of new technologies and applications advanced robotics,
additive or3D printing, factories embedded with sensors (industrialInternet) as well as newtechniques
likebigdataanalytics.Arangeofdisciplineswillneedtobemobilisedinawaythatcanharnessthechangesto
multidisciplinaryresearchbroughtaboutbytheInternetandITandapplythemtoarangeoffields.
Disruptivetechnologiesdisplaceestablishedonesandaffectproductionprocesses,theentryofnewfirms,and
the launch of groundbreaking products and applications. Examples of such technologies include sensors,
computersandexperimentalgenetherapies.Manyofthemostexcitingorusefulproductsavailabletodayowe
theirexistence,performance,efficacyandaccessibilitytotherecentdevelopmentofdisruptivetechnologiesin
fieldssuchasadvancedmaterials,informationandcommunicationtechnologies,andhealthrelatedtechnologies.
The UnitedStates alone contributed 36% of all inventions patented in the case of a new generation of ICTs
(i.e.technologiesrelatedtotheInternetofThings[IoT],bigdataandquantumcomputingandtelecommunication).
Both theEuropeanUnion and the UnitedStates saw their relative share of IoT inventions diminish as G20
Asiancountries,inparticularKorea,China,andJapangainedgroundandcontributedabout36%ofinventions
inInternetofThingsrelatedtechnologiesover201012.
Figure 6. Top players in IoT, big data and quantum computing technologies, 2005-07
and 2010-12
Economies share of IP5 patent families filed at USPTO and EPO, selected ICT technologies
Internet of Things Big data Quantum computing and telecommunication 2005-07
% 42 49 42
35 50
30
25
20
15
10

Notes:TheindicatorspresentedhererelyonpatentfamilieswithintheFiveIPoffices(IP5)withpatentfamilymembersfiledattheEPOor
USPTObyfirstfilingdateandaccordingtotheapplicantsresidenceusingfractionalcounts.Thedistributionofeconomiesreflectsthelocation
of patent assignees. The UK government has identified a number of technologies as potential sources of future growth and mapped
inventiveactivityinthesetechnologiesovertheperiod200413throughexaminationofpatentdocumentspublishedworldwide.
AmongtheidentifiedtechnologieswereanumberofenablingtechnologiesthatformthebasisofthenewgenerationofICTs,aswellas
advanced materials and healthrelated technologies. The new generation of ICT technologies includes quantum computing and
telecommunication, the IoT, and big data and energyefficient computing. Quantum technologies harness quantum physics to acquire
functionalities or improve the performance of existing technologies (e.g. microprocessors with more effective computation, leading to
patentsrelatedtoencryption,aswellastransmissionsystemsandcomponents).Bigdataandenergyefficientcomputingrelatestodata
having such magnitude (typically several petabytes) and high processing speed requirements that require innovative approaches to
handlingandmanipulation.TheInternetofThings(IoT)referstonetworksofeverydayphysicalobjectsthatcanbeaccessedthroughthe
Internetandareabletoautomaticallyidentifythemselvestootherdevices.Examplesincluderemotecontrolappliances,trafficcongestion
optimisation,ehealthandindustrialautodiagnosis.
Further details on IPOs patent landscape can be found in the Eight Great Technologies report (October 2014),
www.gov.uk/government/publications/eightgreattechnologiesthepatentlandscapes.
Source:OECDcalculationsbasedonIPO(2014),EightGreatTechnologies:thePatentLandscapes,UnitedKingdom,andSTIMicrodataLab:
IntellectualPropertydatabase,http://oe.cd/ipstats,June2015.

10 OECD, 2016
Addressing common challenges through

international co-operation in science and innovation
Meeting global challenges is not a onecountry endeavour. Cooperation and knowledge flows help address
commonchallengesandempowersociety.
Collaborationwithinandacrosscountriesisapervasivefeatureofresearchandinnovationactivitiesworldwide.
Thiscanbedocumentedbytrackingtheaffiliationandgeographiclocationofcoauthorsofscientificpublications
andcoinventorsofpatentedinventions.WiththeexceptionofIndonesia,mostoftheG20economies(blue
circles)havelowerthanmedianinternationalcollaboration,bothinscientificproductionandininventiveactivities.
While exhibiting similar levels of engagement in international coauthorships, highly innovative economies
suchasJapan,KoreaandtheUnitedStatespresentdifferentlevelsofcopatenting,withAsianinventorsbeing
relativelymoreengagedinwithincountrycollaboration.Factorssuchasscientificandtechnologicalspecialisation,
collaborationopportunities,andgeographicalandinstitutionalproximitymaycontributetoexplainingthesepatterns.
Figure 7. International collaboration in science and innovation, G20 economies, 2003-12

Co-authorship and co-invention as a percentage of scientific publications and IP5 patent families
G20 countries Other OECD countries
International co-inventions (%)
50
Co-authorship
countries' median IDN
40
30
RUS
IND
MEX
20
CAN SAU
Co-inventions
GBR countries' median
CHN BRA ARG
ZAF
10 AUS
TUR FRA
USA DEU
ITA
KOR
JPN
0
0 25 50 75
International co-authorship (%)
Notes:Internationalcoinventionsarethosethatincludeatleastoneforeigncoinventorintotalpatentsinventeddomestically.Data
refertoIP5patentfamilieswithmembersfiledattheEuropeanPatentOffice(EPO)ortheUSPatentandTrademarkOffice(USPTO),by
firstfilingdateandaccordingtotheinventorsresidenceusingwholecounts.
Internationalcoauthorshipofscientificpublicationsismeasuredintermsoftheshareofarticlesfeaturingauthorsaffiliatedwithforeign
institutions (from a different country or economy) in total articles produced by domestic institutions. Most G20 economies fall in the
bottom left quadrant, indicating a relatively low share of both international scientific coauthorships and patented coinventions. For
Japan,scientificcoauthorshipjustexceeds20%;howeverthisishigherthanthelevelofinternationalpatentcoinvention,whichstandsat
lessthan2%.
Sources: OECD, STI Microdata Lab: Intellectual Property database, http://oe.cd/ipstats, June 2015; OECD and SCImago Research Group
(CSIC)(2015),CompendiumofBibliometricScienceIndicators2014,http://oe.cd/scientometrics.
OECD, 2016 11
Raising the quality of science

Cooperationandknowledgeflowsalsohelpraisescientificqualityandinnovationcapabilities.Productionof
scientificknowledgehasshiftedprogressivelyfromindividualstogroups,fromsingletomultipleinstitutions,
and from the national domain to the international arena. Scientific researchers increasingly network across
nationalandorganisationalborders.Singleauthorsaffiliatedtoasingleinstitutioncurrentlyaccountforless
than15%ofscientificpublications.Theproportionofdocumentsinvolvinginternationalcollaborationinsome
formhasnearlydoubledsince1996,reachingcloseto20%in2013,althoughmostscientificcollaborationsare
still of a domestic nature. Estimates suggest a positive relationship between measures of scientific research
collaborationandcitationimpact.Thisrelationshipappearstobestrongerineconomieswithlowerlevelsof
scientificproduction,highlightingtheimportanceofscale,whichsmallereconomiesattempttoovercomeby
participatingmoreintensivelyinglobalnetworks.However,severallargerG20economiesstilllieinthequadrant
correspondingtolowerlevelsofscientificcollaborationandlowerlevelofscientificimpact.
Figure 8. The citation impact of scientific production and the extent of

international collaboration, G20 economies, 2003-12
Normalised citation impact
2
OECD average
Low collaboration High collaboration
international
High quality High quality
collaboration
1.8
1.6
USA GBR
CAN OECD average
1.4 AUS normalised citation rate
ITA DEU FRA High collaboration

1.2 Low collaboration
Low quality Low quality
ZAF
KOR
1
JPN
TUR BRA IDN
0.8
IND MEX
CHN POL
0.6
RUS
0.4
0 10 20 30 40 50 60 70 80
International collaboration among institutions (%)
Notes:Scientificcollaborationisdefinedascoauthorshipinvolvingdifferentinstitutions.Internationalcollaborationreferstopublications
listedintheScopusdatabasethatarecoauthoredamonginstitutionsindifferentcountries.Estimatesarecomputedforeachcountryby
counting documents for which the set of listed affiliations includes at least one address within the country and one outside. The
normalised impact measure is derived as the ratio between the average number of citations received by the documents published by
authorsaffiliatedtoaninstitutioninagiveneconomyandtheworldscitationaverage,overthesametimeperiod,bydocumenttypeand
subjectarea.Asimilarpatternarisesifonelooksatmeasuresofscientificexcellence(e.g.thepercentageofdomesticdocumentsamong
theworld's10%topcited)insteadofaveragecitationimpact.
Source:OECDandSCImagoResearchGroup(CSIC)(2015),CompendiumofBibliometricScienceIndicators2014,http://oe.cd/scientometrics.
12 OECD, 2016
Promoting excellence
Howdocountriesbenefitfrominternationalscientificcollaboration?Internationalcollaborationallowsauthorsin
differentcountriestopartnerwithleadingexpertselsewhere,sharingknowledge,costsandrewards.Combining
theanalysisofexcellenceandleadingauthorship(i.e.theaffiliationoftheleadingauthor)canprovidefurther
insights into the source of a countrys highlycited publications. In the United States, for example, 17% of
publications are among the top 10% most cited globally, of which 14% had a USbased author listed as the
leadingauthor,whileonly3%areledbyauthorswithaffiliationsabroad.Accordingly,whiletheUnitedStates
haslevelsof"scientificexcellence"similartotheonesoftheUnitedKingdom,asmeasuredbythisindicator,
the United States has the largest share of topcited publications led by domestic authors among the
G20economies.Othercountrieswithhigheroverallexcellenceratesdisplaylowerlevelsofleadingexcellence
becauseofthehigherimportanceofcollaborativearticlesledbyauthorsfromothercountries.Forexample,
whileJapanandIndonesiadisplayanequalshareoftop10%citedscientificpublications,scientificleadership
inIndonesiaismuchlowerthaninJapan.
Figure 9. Top 10% most cited documents and scientific leading authorship,
selected G20 economies, 2003-12
As a percentage of all documents, whole counts
Top 10% most cited documents, led by domestic author Top 10% most cited documents, led by foreign author
%
15
Led by domestic leading author

10
-5
Led by foreign leading author
-10

Notes:Theindicatorofscientificexcellenceindicatesthepercentageofaunitsscientificoutputthatisincludedintheglobalsetofthe
top10%ofcitedpapersintheirrespectivescientificfields.Thisindicatorcanbeusedincombinationwithinformationontheaffiliationof
the corresponding author, domestic or based abroad, to better describe the role of international collaboration as a driver of scientific
excellence.Theconceptofleadingauthorshipcanobeydifferentnormswithinscientificgroupsanddisciplines.Theleadershipcriterion
forattributiongivesnoweighttoothercontributorsnotlistedasleading,soitshouldbeinterpretedcarefullyinconjunctionwithother
indicators.Scientificleadershipindicatorshelpexplaintheroleofagiveninstitutionorcountryincollaborationactivities,asreflectedin
publicationoutput.Inthiscase,thelowerpartofthechartdocumentsthecontributionofforeignleddocumentstotheoverallexcellence
rate for documents involving authors from the reference economy. Among the G20 economies for which data are available, this
componentislargestinthecaseofIndonesiaandsmallestfortheUnitedStates.
Source:OECDandSCImagoResearchGroup(CSIC)(2015),CompendiumofBibliometricScienceIndicators2014,http://oe.cd/scientometrics.
OECD, 2016 13
Nurturing talent and skills

Education systems play a broad role in supporting innovation as knowledgebased societies rely on a highly
qualifiedandflexiblelabourforceinallsectorsoftheeconomyandsociety.Innovationrequiresthecapacityto
continuallylearnandupgradeskills.
While basic competencies are generally considered important for absorbing new technologies, highlevel
competenciesarecriticalforthecreationofnewknowledgeandtechnologies.Emphasisisincreasinglyplaced
on capabilities for adapting and combining multidisciplinary knowledge and performing complex problem
solving.Theacquisitionofsuchskillsstartsataveryearlyage.
Afocusontopperformingstudentsallowsforabetterunderstandingofproficiencypatternsamong15year
olds. Data from the OECDs Programme for International Student Assessment (PISA) show that in all G20
economies,theshareoftopperformerswashigherinmathematicsthaninscience.However,thevariabilityin
the proportion of top performers across countries suggests differences in countries potential capacities to
stafffutureknowledgedrivenindustrieswithhomegrowntalent.
Figure 10. Top performers in mathematics and science, selected G20 economies, 2012
Percentage of students reaching the two highest levels of proficiency
Mathematics Science
%
60
%
50 0.8 Magnified
0.6
40
0.4
30 0.2
20 0
10

Notes: The OECD PISA programme assessed in 2012 the skills of 15 yearolds in 65 economies. Around 510000 students participated,
representing28million15yearoldsglobally.
StudentsassessedbyPISAarebetweentheagesof15years3monthsand16years2months.Theymustbeenrolledinschoolandhave
completedatleast6yearsofformalschooling,regardlessofthetypeofinstitution,theprogrammefollowed,orwhethertheeducationis
fulltimeorparttime.
TopperformersinsciencearestudentsproficientatLevels5and6inthePISA2012scienceassessment(i.e.theyhaveobtainedscores
higher than 633.3 points). Top performers in mathematics are students proficient at Levels 5 and 6 in the PISA 2012 mathematics
assessment(i.e.withscoreshigherthan607.0).Thesestudentsare expectedtobeattheforefrontofacompetitive,knowledgebased
globaleconomy.Theyareabletodrawonanduseinformationfrommultipleandindirectsourcestosolvecomplexproblems.
Source:OECD(2014),PISA2012Results:WhatStudentsKnowandCanDoStudentPerformanceinMathematics,ReadingandScience
(VolumeI,Revisededition,February2014),OECDPublishing,Paris,http://dx.doi.org/10.1787/9789264208780en.

14 OECD, 2016
Investing in scientists and engineers

Societies require a wide array of skills and assets to achieve progress. Tertiary education has expanded
worldwide to support the supply of highly educated individuals and meet rising demand. Policy makers are
particularly interested in the supply of scientists and engineers because of their direct association with
technologicalprogress,industrialperformanceandeconomicgrowth.Thesupplyofgraduatesinthenatural
sciences and engineering (NS&E) may relate to opportunities in labour markets and their ability to absorb
highlyspecificskills,bothathomeandabroad.
The proportion of NS&E graduates among the subpopulation of doctorates is higher than for other tertiary
levels,reachinganaverageofapproximately40%forasampleofG20economies.Thenaturalsciencesaccount
for almost 50% of new doctoral degrees awarded in France. Engineering represents more than 50% of new
doctoraldegreesinKoreaandJapan.
Figure 11. Tertiary education graduates Figure 12. Graduates at doctorate level
in natural sciences and engineering, in natural sciences and engineering,
selected G20 economies, 2013 selected G20 economies, 2013
As a percentage of all tertiary graduates, based on As a percentage of all graduates at the doctorate
ISCED-11 level, based on ISCED-11
Science, mathematics and computing Science, mathematics and computing

Engineering, manufacturing and construction Engineering, manufacturing and construction
% %
40 70
60
30 50
40
20
30
20
10
10
0 0
Notes: The natural sciences and engineering fields of education correspond to ISCED11 fields 4 and 5, with 4 being for science
(comprising the life sciences, physical sciences, mathematics and statistics and computing) and 5 for engineering, manufacturing and
construction.ThesciencecategoryinISCED11correspondsbroadlytotheconceptofnaturalsciencesusedintheOECDFieldsofScience
andTechnologyclassification(2007).
Agraduateisdefinedasastudentwhohassuccessfullycompletedallrequirementsofaparticularprogrammeofstudy.Graduatesat
thetertiarylevelareindividualsthathaveobtainedadegreeatISCED11Levels5,6,7or8.Graduatesatthedoctoratelevelarethose
tertiary graduates who have completed the second stage of university education and obtained a degree at ISCED11 Level 8. These
graduateshavesuccessfullycompletedanadvancedresearchprogrammeandbeenawardedanadvancedresearchqualification(e.g.a
PhDorequivalent).
DataongraduatesbyfieldofeducationarecomputedonthebasisofannualdatajointlycollectedbyUNESCOUIS/OECD/Eurostat.This
data collection aims to provide internationally comparable information on key aspects of education systems in more than 60 countries
worldwide (www.oecd.org/education/database.htm). The International Standard Classification of Education has been recently revised
(ISCED11) and implemented in the UNESCOUIS/OECD/Eurostat data collection. A particular feature of the revised classification is the
provisionofmoredetailedinformationonthebroadercommunityofgraduatesattertiarylevel.
Source:OECD,EducationDatabase,April2016.

OECD, 2016 15
Promoting student exchanges

Internationalmobilityamonghighlyeducatedindividualsatdifferentstagesoftheirpersonaldevelopmentand
professional careers constitutes a key driver of knowledge circulation worldwide. For example, students in
higher education that study or spend some time in a foreign tertiarylevel institution build links with other
individualsandacquirecompetencieswhichwillbecarriedovertootherplacesduringtheirworkinglives.The
UnitedStatesattractsthelargestabsolutenumberofinternationalstudents,followedbytheUnitedKingdom,
France,AustraliaandGermany.Themajorityofinternationalstudentsspecialiseinsubjectsoutsidethenatural
sciencesandengineering.
Figure 13. International and foreign students enrolled in tertiary education,

selected G20 economies, 2013
Total and breakdown by field of education
Sciences Engineering, manufacturing and construction

Health and welfare Humanities, arts and education
Social sciences, business and law Services and agriculture
%
International students Foreign students
100
80
60
40
20
0

Notes:Internationalstudentsare studentsthathavecrossedbordersexpresslywiththeintentiontostudy.TheUNESCOInstitutefor
Statistics, the OECD and Eurostat define international students as those who are not residents of their country of study or those who
receivedtheirprioreducationinanothercountry.Foreignstudentsaredefinedaccordingtotheircitizenship.
The2014UNESCOOECDEurostat(UOE)collectionofeducationstatisticsistheprimarysourceofdataontertiaryenrolmentbysource
anddestinationcountry.Whendataoninternationalstudentsarenotavailable,dataonforeignbornstudentsareusedtoobtainamore
completepicture.However,numbersofinternationalstudentsismoredirectlyrelevantfortheanalysisofmobility.
Source:OECDcalculationsbasedonOECD(2015),EducationataGlance:OECDIndicators,OECDPublishing,Paris,http://dx.doi.org/10.1787/eag
2015en.
16 OECD, 2016
Facilitating researcher mobility

While published scientists are only a subset of the highly skilled, they represent a particularly important
portion given their high level of training and proven contribution to scientific knowledge and its circulation.
Indicatorsofinternationalmobilitybasedonchangesinauthoraffiliationscanbeusedtoinvestigatethenet
entry or exit flow of scientific authors over time for different economies. The timing and intensity of these
flowscanberelatedtorelevantpoliciesadoptedbycountries,forexampleconcerningthefundingofscientific
research,supportforinternationalmobility,ortheroleplayedbymigrationpolicies.CountriessuchasAustralia
and China owe most of their overall positive net inflow to recent trends. China reversed what were net
outflowsexperiencedinthelate1990sintoasignificantnetinflowofauthorsinthelastfewyears,whileIndia
experiencedpersistentnetoutflowsuntil2013whenanetinflowwasfirstrecorded.IntheUnitedStates,a
positivebalanceinvolvessubstantialnetinflowsintheearlypartofthe19992013period,combinedwitha
net outflow in more recent years. While the scientist population in the United Kingdom is among the most
mobile,italsohasthelargestnetoutflowovertheperiod.InthecaseofItalythereappearstohavebeenan
acceleration of net outflows in the latter period. The major EU countries appear to be rather stable net
providersofscientificauthorstotherestoftheworld,alikelyoutcomeoftheattractivenessoftheirhigher
education systems at the degree level. This is reflected in the EU net cumulative outflows (diamond at
35000);avaluethatnetsoutintraEUresearcherflowsandshowstheEuropeanUnionasanimportantnode
oftrainedscientistsfortherestoftheG20economies.
Figure 14. International net flows of scientific authors, G20 economies, 1999-2013
Difference between annual inflows and outflows, as percentage of cumulative net flows
1999-2003 2004-08 2009-13 Net flows, full period (right-hand scale)
% Flows
100 15 000
80
10 000
60
40
5 000
20
0 0
-20
-5 000
-40
-60
-10 000
-80
-100 -15 000

Notes:ThisfiguredecomposestheoverallnetflowofscientificauthorsacrossdifferentyearsforG20economiesovertheperiod1999
2013, expressed in relative terms. This helps to identify thetimingand intensity of different phases of net entry and net exit from the
perspectiveofagivencountry.Forexample,theUnitedStatesandChinaexperiencesimilarnetinflowsovertheentireperiod(seethe
diamond)butthetimingandtrendsareratherdifferent.InthecaseoftheUnitedStates,thenetflowsturnfrombeingpositiveinthe
early2000stonegativeinmorerecentyears,whileforChinathepatternisexactlytheopposite.
Itisdifficulttocaptureconsistentlythemovementofscientiststhroughstatisticalsurveyswhicharenationalinscope.Monitoringchanges
inscientistaffiliationsinglobalrepositoriesofpublicationsprovidesacomplementarysourceofdetailedinformationbutthesearelimited
toauthorswhopublish,andmoreoverwhopublishregularly:otherwisetheiraffiliationscannotbedetectedandtimedinasufficiently
accurateway.Mobilitycanonlybecomputedamongauthorswithatleasttwopublications.Theseindicatorsarelikelytounderstateflows
involvingmovestoindustryororganisationswithinwhichscholarlypublicationisnotthenorm.
Source:OECDcalculationsbasedonScopusCustomData,Elsevier,version4.2015,http://oe.cd/scientometrics,June2015.

OECD, 2016 17
Promoting collaboration in innovation among firms

Collaboration is a key conduit for innovationrelated knowledge flows both for firms that use R&D (either
internallydevelopedorexternallyacquired)andforthosethatarenotR&Dactive.Patternsofcollaboration
differ in terms of possible partners and firms' own characteristics. Collaboration with higher education or
public research institutions constitutes an important source of knowledge transfer for large firms. In most
countries such firms are usually two to three times more likely to engage in this type of collaboration than
smallandmediumsizedenterprises(SMEs).
International collaborationplays a very important rolebyallowing firmsto gain access to abroaderpool of

resources and knowledge at lower cost and to share risks, integrating in global value chains. International
innovationcollaborationratesvarywidelyacrosscountries.Insomesmall,openeconomiescollaborationisheavily
skewedtowardsforeignpartners.Thismayreflectfactorssuchassectoralspecialisation,limitedopportunities
fordomesticcollaborationand,insomecases,proximitytoexternalcentresofknowledge.Sizealsoappearsto
beastrongdeterminantofinternationalcollaborationoninnovation,especiallyinthecaseofBrazil.
Figure 15. Firms collaborating on innovation Figure 16. Firms engaged in international
with higher education or research institutions, collaboration for innovation, by firm size,
by firm size, selected G20 economies, 2010-12 selected G20 economies, 2010-12
As a percentage of product and/or process-innovating As a percentage of product and/or process-innovating

firms in each size category firms in each size category
SMEs Large firms SMEs Large firms

% %
80 50
40
60
30
40
20
20
10
0 0
Notes:Collaborationinvolvesactiveparticipationinjointinnovationprojectswithotherorganisationsbutexcludespurecontractingoutof
innovationrelatedwork.Itcaninvolvethejointimplementationofinnovationswithcustomersandsuppliers,aswellaspartnershipswith
other firms or organisations. International collaboration on innovation refers to active crossborder participation in innovation
collaborations.Internationalcomparabilityofinnovationdatamaybelimitedduetodifferencesininnovationsurveymethodologiesand
countryspecificresponsepatterns.Dataoncollaborationwithdifferentpartnersandindifferentlocationsareobtainedfromsurveysof
firms using questions based on the OECD/Eurostat Oslo Manual on measuring innovation (see www.oecd.org/sti/oslomanual). Design
features such as question order, scope or combination with other types of surveys may influence answers to questions on innovation
activityandcollaborationwithotherparties.
Source:OECD,basedonEurostatCommunityInnovationSurvey(CIS2012)andnationaldatasources,June2015.

18 OECD, 2016
Supporting business innovation

Businessinnovationdependsonsupplyanddemandfactors.GovernmentsupportforbusinessR&Dseeksto
encouragefirmstoinvestinknowledgethatcanresultininnovationsthattransformmarketsandindustries
andresultinbenefitstosociety.PublicsupportforbusinessR&Distypicallyjustifiedasameansofovercoming
a number of market and institutional failures. In addition to providing direct R&D support such as grantsor
contracts,manygovernmentsalsoincentivisefirms'R&Dthroughtaxreliefmeasures.In2015,28OECDcountries
gavepreferentialtaxtreatmenttobusinessR&Dexpenditures.Korea,theRussianFederationandFranceprovided
themostcombinedsupportforbusinessR&DasapercentageofGDPin2013,whiletheUnitedStates,France
andChinaprovidedthelargestvolumesoftaxsupport.Therelativeimportanceoftaxincentiveshasincreased
acrossamajorityofOECDcountriesandG20economies,althoughthisisbynomeansuniversal.Germanyand
MexicodonotprovideR&Dtaxincentives.TheoptimalbalanceofdirectandtaxsupportforR&Dvariesfrom
countrytocountryandcanevolveovertime,aseachtooladdressesdifferentmarketfailuresandstimulates
differenttypesofR&Dunderchangingconditions.
Figure 17. Direct government funding of business R&D and tax incentives for R&D,
G20 economies, 2013
As a percentage of GDP
Direct government funding of BERD Indirect government support through R&D tax incentives
%
0.5
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0

Note:Inthisfigure,estimatesofthecostofR&Dtaxincentivesatthenationalorfederallevelhavebeencombinedwithdataondirect
R&D funding (R&D grants and purchases), as reported by firms, to provide a more complete picture of government efforts to promote
business R&D. The latest edition of the Frascati Manual summarises the guidance on reporting data on tax relief for R&D. See
http://oe.cd/frascati.
Sources:OECD,R&DTaxIncentiveIndicators,www.oecd.org/sti/rdtaxstats.htm;OECD,MainScienceandTechnologyIndicatorsdatabase,
www.oecd.org/sti/msti.htm,June2015.
HOW TO MEASURE R&D TAX INCENTIVES

TaxincentivesforbusinessR&Dincludeallowancesandcredits,aswellasotherformsofadvantageoustaxtreatmentofbusinessR&D
expenditure. Estimates exclude incomebased incentives (e.g.preferential treatment of incomes from licensing or asset disposal
attributable to R&D or patents) and incentives to taxpayers other than firms. While typically nondiscretionary and demanddriven,
somecountriesrequirepreapprovalofR&Dprojectsoraccreditation.Budgetlimitsmayapplyatthecountrylevel.

OECD, 2016 19
Fostering entrepreneurship
The policy environment plays an important role in encouraging the creation of new firms and promoting
healthycompetitionintheeconomy.Lessredtapefacilitatesbusinesscreationwhilegoodinsolvencyregimes
reduce the stigma of bankruptcy for firms and individuals, encouraging entrepreneurs to take risks and
innovate.Younginnovativefirmsareparticularlycrucialforeconomicgrowthandjobcreation.However,they
encounterobstacleswhenseekingfinancingastheygenerallylackcollateralorabusinesstrackrecord.While
notallstartupsrequire(ordeserve)externalcapital,theyoftenencounterdifficultiesinobtainingseedand
earlystagefinancingbecauseofuncertainprofitexpectationsandriskiergrowthperspectives.
A highquality regulatory framework facilitates market entry and growth for businesses. During the last
decade,barrierstoentrepreneurshiphavebeenloweredinmostG20economies.Yet,India,ChinaandBrazil
still display relatively high barriers to entry, in particular with respect to high administrative burdens and
regulatory complexity. Thedecision to start a business is also affected by taxes andtax policy, inparticular,
general taxes (personal income, corporate and capital gain tax rates, and social security contributions) and
targetedtaxpolicies(taxincentivesforstartups,youngfirms,andSMEs).
Figure 18. Barriers to entrepreneurship, selected G20 economies, 2013

Scale from 0 to 6 from least to most restrictive
Administrative burdens on start-ups Complexity of regulatory procedures

Regulatory protection of incumbents Barriers to entrepreneurship, 2003
Index
4
3.5
2.5
1.5
0.5
0

Notes: The barrier to entrepreneurship indicator measures the regulations affecting entrepreneurship on a scale of 0 to 6, with lower
values suggesting lower barriers. The index includes the administrative burden of creating new firms, the regulatory protection of
incumbents (legal barriers, antitrust exemptions, barriers in network sectors), and the complexity of regulatory procedures (licences,
permits,simplicityofprocedures).
Higherlevel(composite)indicators,suchasthebarriertoentrepreneurshipindicator,arecalculatedasweightedaveragesoflowerlevel
indicators,usingequalweightsforaggregation.TheOECDsProductMarketRegulation(PMR)databasecontainsquantitativeindicatorson
regulations that can affect competition. These are derived from qualitative information collected from national administrations. The
databaseisupdatedeveryfiveyearswithdatastartingfrom1998.
Source:OECD,ProductMarketRegulationdatabase,www.oecd.org/economy/pmr,June2015.

20 OECD, 2016
Empowering society with science and technology

Developmentsinscienceandtechnologyhavemajorandvisibleimpactsonpeople'slives.Thesedependon
thecollectiveactionofdecisionsofnotonlygovernments,leadingscientistsandfirms,butentiresocieties.A
country'sscienceandinnovationculturecangreatlyinfluencetherateandfashioninwhichnewtechnologies
andinnovationaredeveloped,adoptedanddiffused,aswellastheirbroaderimpacts.Acomparisonofresults
fromhouseholdsurveyscarriedoutindifferentcountriesindicatesthatthepublichasamainlypositiveview
ofthesocietalimpactofscienceandtechnology(S&T).However,theyalsofindthatasignificantproportionof
the population has mixed or critical views about S&T, which may in some cases reflect limited knowledge
aboutS&T,butmayalsoreflectamorenuancedandreflexiveperspectiveaboutitsgovernanceandtheneed
forresponsibleresearch.
Figure 19. Public perception of impacts of science and technology on society,

selected G20 economies, 2013
Net relative balance on: "Is the overall impact of science and technology on society positive or negative?"
As a percentage of respondents with positive views, relative to all respondents with non neutral views
%
100
Eurobarometer 2013 Other surveys
80
60
40
20
0

Notes:MeasuringtheS&Tcultureisoftenimpededbythefactthatavailablenationaldatasourcesuseslightlydifferentquestionsand
possibleanswers,whileresponsescanvaryaccordingcontextualfactors.Comparisonofresponsesfromsurveyswithdifferentresponse
options has been undertaken by calculating a summary indicator as the ratio of the difference between positive and negative views,
dividedbythesumofbothgroups.Thisexcludesrespondentswithaneutralpositionandthosewhoselecteddontknow,ifsurveys
providedsuchoptions.Thisapproachmayretainsomebiasifneutralrespondents,whenunabletoselectsuchanoption,aremorelikely
toprovideapositiveanswerthananegativeone.
Sources:OECDcalculationsbasedonEuropeanCommission(2013),SpecialEurobarometer401;andothernationalsources,June2015.
OECD, 2016 21
Part 2
COUNTRY PROFILES
ThecountryprofilespresentedheredisplayG20economiespoliciesinthescience,technology
andinnovationspace.1Theyareexcerptsofthecountryprofilespreparedfortheforthcoming
OECDScience,TechnologyandInnovationOutlook2016.Thecompleteprofileswillbemade
availableontheOECDWorldBankInnovationPolicyPlatformatthereleaseoftheOECDSTI
OutlookinearlyDecember2016.Theprofileswillalsobemadeavailableontheonline G20
CommunityofInnovationPolicyPractice.
1.Duetodatalimitations,SaudiArabiaisnotincluded.
Argentina
The Argentine government recognises that innovation is a key source of growth. In the context of current
socialchallengessuchasexclusion,theMinistryofScience,TechnologyandProductiveInnovation(MINCYT)
has made addressing social challenges a priority in its guidelines for the development of the countrys
innovationsystem.
Highlights of the Argentine STI system

Investing in innovation: The MINCYT, which had a budget of USD1386millionPPP (ARD4994million) in
2013,hasacentralroleinmanaginginnovationinvestmentsandR&Dinstitutions.Argentinaspent0.61%ofits
GDPonR&Din2014.ThegovernmentfinancesthemajorityofGERD(0.46%ofGDP),anditscontributiongrew
by15.44%ayearover200813,fasterthantheoverallannualgrowthofGERD(9.5%)overthesameperiod.
Agencies such as the National Research Council (CONICET) and the National Agency for the Promotion of
ScienceandTechnology(ANPCYT)distributegovernmentgrantsforresearch,whiletheEvaluationandQuality
Assurance Unit (UEAC) of the ANPCYT and the National Directorate of Programmes and Projects of the
UndersecretaryofInstitutionalEvaluationconductevaluationswithaviewtoqualityassurance.
Coordination of STI governance: MINCYTs allocation of resources has been progressively aligned over the
lastfiveyearswithpoliciesfromotherministriesandagenciesthroughtheScientificandTechnologicalCabinet
(GACTEC),aninterministerialbodyinchargeofformulatingS&Tpolicy.TheFederalCouncilonScienceand
Technology (COFECYT) acts as an advisory board for maintaining policy coherence among federal, provincial
and local governments, and for safeguarding regional interests in the MINCYTs allocation of resources. In
March2013,theMINCYTpresenteditsnationalSTIstrategicplan,ArgentinaInnovadora2020,whichseeksto
optimiseandarticulatethecountryspublicandprivateSTIefforts.
Hot issues
Boostinghumanresourcesandskills:Argentinaspent1.12%ofitsGDPontertiaryeducationin2012(Fig.20s),
buttheperformanceofthecountrys15yearoldsinscience(Fig.20v )pointstoshortcomingsinthequalityof
education. The share of doctoral graduates in S&E is also low (Fig.20w). To improve the supply of human
resources for STI, two programmes, Becas Bicentenario and Becas TICs, provide up to 30000 scholarships a
yearfortertiaryeducationforlowincomestudents.CONICETfundsdomesticdoctoralprogrammesandpost
doctoral training and provides grants to support knowledge transfer between universities and the private
sector.ThegovernmentalsohasprogrammestargetingArgentinasdiaspora.Between2004and2013,more
than1000scientistsreturnedtoArgentina,contributingtoanincreasedsupplyofyoungerresearchers,with
theshareofresearchersunderage40risingfrom41%in2003tonearly48%in2011.Furthermore,toimprove
the performance of Argentinas researchers, ANPCYTs PITEC and PAE programmes support publicprivate
partnerships in research projects aimed at increasing the contribution of research to Argentinas economy,
includingbyaddressingpressingsocioeconomicchallenges.
Innovationinfirms:WithBERDof0.12%ofGDPin2014(Fig.20d ),Argentinalagsininnovationperformance,
triadicpatents(Fig.20f)andtrademarkregistrations(Fig.20g).Toimproveinnovationperformance,government
programmestargetkeyknowledgeareasandsectorstoimproveboththequalityofhumancapitalforresearch
andinnovationandthearticulationbetweenpublicresearchandindustry.MostofANPCYTsbudgetfocuses
on the strategic knowledge areas and business sectors identified in the Argentina Innovadora 2020 plan.
FONSOFTisatrustfundtosupportICT,inwhichArgentinahopestodevelopacomparativeadvantage.The
FONARSECfundsupportsthedevelopmentoftargettechnologies(e.g.bioandnanotechnology)andsectors
(e.g.energy, health and agroindustry). The MINCYT is currently evaluating the means of measuring private
R&D;preliminaryresultsindicatethatBERDmayhavebeensomewhatunderestimated.
24 OECD, 2016
Figure 20. Science and innovation in Argentina

Comparative performance of national science and innovation systems, 2016
Top/Bo ttom 5 OECD value s Midd le ran ge o f OECD values OECD median Argent ina
a. Competences and capacity to innovate
Univer sities and R&D and innovation in fir ms Innovative

public r esear c h entr epr eneur ship
200
Top half 150

OECD
100
Bottom half 50
OECD
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
(a) P ublic R&D expenditure (per GDP ) (d) B usiness R&D expenditure (per GDP ) (h) Venture capital (per GDP )
(b) To p 500 universities (per GDP ) (e) To p 500 co rpo rate R&D investo rs (per GDP ) (i) Yo ung patenting firms (per GDP )
(c) P ublicatio ns in the to p jo urnals (per GDP ) (f) Triadic patent families (per GDP ) (j) Ease o f entrepreneurship index
(g) Trademarks (per GDP )
b. Interactions and skills for innovation

ICT and Inter net Networ ks, c luster s Skills for innovation
infr astr uc tur es and tr ansfer s
200
Top half OECD 150
100
Bottom half
OECD 50
(k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) (w)
(k) ICT investment (per GDP ) (o ) Industry financed public R&D expenditure (per GDP ) (s) Tertiary educatio n expenditure (per GDP )
(l) Fixed bro adband subscriptio ns (per po pulatio n) (p) P atents filed by universities and public labs (per GDP ) (t) A dult po pulatio n at tertiary educatio n level (%)
(m) Wireless bro adband subscriptio ns (per po pulatio n) (q) Internatio nal co -autho rship (%) (u) To p adult perfo rmers in techno lo gy pro blem so lving (%)
(n) E-go vernment develo pment index (r) Internatio nal co -inventio n (%) (v) To p 15 year-o ld perfo rmers in science (%)
(w) Do cto ral graduate rate in science and engineering (%)

Notes:NormalisedindexofperformancerelativetothemedianvaluesintheOECDarea(Indexmedian=100).ForArgentina,2012valueswere
usedfortheindicatorWirelessbroadbandsubscriptions(perpopulation).ItiscomparedtovaluesofDecember2015forOECDcountries.
OECD, 2016 25
Australia
Australiaseconomyhasbeenoneoftheworldsmostresilientduringtheglobaleconomiccrisis.Since2005,
labourproductivityhasincreasedfasterinAustraliathaninmanyothercountrieswhileincomeinequalityhas
declined.However,sincethefallincommoditypricesin2014,thecountryhasfacedconsiderablechallengesin
readjusting policies. Australias economy relies relatively heavily on primary and resourcebased industries;
coal and iron exports accounted for 29% of total exports of goods and services in 201415. Although the
economy is supported by strong macroeconomic frameworks and commodity price levels have tended to
stabilisein2016,maintaininggrowthinincomesandconservingthecountrysestablishedpositionintermsof
internationalcompetitivenesswillrequirefurtherefforts.Inordertoaddressthesechallenges,theAustralian
Government developed the National Innovation and Science Agenda (NISA). NISA aims to build a stronger,
moreproductiveanddiverseeconomy,withmoreefficientgovernmentandmoreproductivebusinesses.NISA
intendstotransformthecountryintoaleadinginnovatorwithhighwagestandardsandsocialwelfaresafety
net. NISAs subprogrammes and initiatives are divided into four key pillars: i)Culture and Capital;
ii)Collaboration;iii)TalentandSkills;andiv)GovernmentasanExemplar.
Highlights of the Australian STI system

Universities and public research: Australia has a strong science base, with a high intensity of public R&D
expenditure,severalworldclassuniversitiesandhighqualityscientificpublications(Fig.21a,b,c).TheNISAannounced
funding of USD1.6billionPPP (AUD2.3billion) over 10years for reinforcing the nationalscale research
infrastructure. This includes operational funding for the National Collaborative Research Infrastructure
Strategy (NCRIS). A further USD17million PPP (AUD25million) over five years is going to be invested in
the development of silicon quantum computing technology by the Centre for Quantum Computation and
Communication Technology (CQC2T), headquartered at the University of New South Wales. New research
fundingarrangementswillalsobeprovidedtouniversities.
ICTandInternetinfrastructures:InternetandICTinfrastructuresarerelativelywelldeveloped,asevidencedby
Australia'swirelessbroadbandsubscriptions(Fig.21m).Inordertomaintainorevenimprovethisperformance,
thegovernmentintendstospendUSD3.5billionPPP(AUD5billion)ayearonICTdissemination.TheDigital
Marketplace,basedonasuccessfulUKmodel,willbeanonlinedirectoryofdigitalandtechnologicalservices
forgovernmentagenciestoprocureICTsolutionsfromSMEs.Thesenewdigitalserviceswillgohandinhand
withmeasurestoensurecybersecurity.Forinstance,AustraliawillinvestUSD52millionPPP(AUD75million)
inData61,Australiaslargestdatainnovationgroup.Itwillusedataanalyticstoconnectdisparategovernment
datasetsandpubliclyreleasethemonopendataplatforms,anditwillalsoplayakeyroleindevelopingnew
cybersecurityarchitectures.
Hot issues
Encouragingbusinessinnovation:Inlinewithitsindustrialstructure(arelativelylowcontributionfromhigh
technologymanufacturing),AustraliashowsamodestBERDintensity(Fig.21d).Innovationoutput,asmeasured
by triadic patents, is also below the median (Fig.21f), while trademark registrations are slightly above
(Fig.21g).Thegovernmentencouragesinnovationandentrepreneurshipinfirmsofallsizeandinallsectorsof
theeconomy,reflectedintheshiftinitspolicymixtowardsnondiscretionaryR&Dtaxincentivesandthemore
recentimplementationoftheNISA.However,AustraliahasalargeshareofSMEsandstartups,andparticular
focushasbeengiveninrecentyearstosupportingR&Dandinnovationinsmallandyoungfirms.Youngfirms
arefairlyactiveinpatenting,andadministrativeandregulatoryconditionsforentrepreneurshipcomparewellto
otherdevelopedeconomies(Fig21i,j ).PoliciesaimedatthesefirmsincludetheIncubatorSupportProgramme,
whichprovidescompetitivematchedfundingintheamountofUSD5.5millionPPP(AUD8million)toaccelerators
26 OECD, 2016
in regions or sectors with high innovation potential and assists young firms to find topquality research and
technicaltalentthroughsecondmentsofnationalorinternationalexpertadvisers.
Targeting priority areas and sectors: TheAustralian Government aims to achieve a worldclass economy by
buildingonthecountrysareasandsectorsofstrength.LedbytheformerChiefScientist,ninenationalscience
andresearchprioritiesandrelatedservicesweredevelopedin2015inconsultationwithresearchers,industry
leaders and government representatives:i)food; ii)soil and water; iii)transport; iv)cybersecurity; v)energy;
vi)resources;vii)advancedmanufacturing;viii)environmentalchange;andix)health.Theimplementationof
theprioritiesisexpected,overtime,toresultinincreasingtheproportionofAustralianGovernmentresearch
investmentthatisallocatedonastrategicbasistoareasofcriticalneedandnationalimportance.
Figure 21. Science and innovation in Australia

Top/Bottom 5 OECD values Middle range of OECD values OECD median Australia

public r esear ch entr epr eneur ship
200
Top half 150

OECD
100
Bottom half 50
OECD
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

ICT and Inter net Networ ks, cluster s Skills for innovation
infr astr uctur es and tr ansfer s
200
Top half 150

OECD
100
Bottom half
OECD 50
(k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) (w)
(k) ICT investment (per GDP ) (o ) Industry-financed public R&D expenditure (per GDP ) (s) Tertiary educatio n expenditure (per GDP )
(m) Wireless bro adband subscriptio ns (per po pulatio n) (q) Internatio nal co -autho rship (%) (u) To p adult perfo rmers in techno lo gy pro blem-so lving (%)

Note:NormalisedindexofperformancerelativetothemedianvaluesintheOECDarea(Indexmedian=100).
OECD, 2016 27
Brazil
While Brazil remains the worlds seventhlargest economy, growth has stagnated over the last two years as
commodity prices, industrial activities and services have all declined. To boost the countrys economic
performanceandincreaseproductivitythroughinnovation,the governmenthasintroducednewlegislationas
wellastheNationalStrategyforScience,TechnologyandInnovation(ENCTI)201619,whichsetsoutthemain
challenges for STI policy. The strategy aims for gross expenditure on research and development (GERD) to
reach2.0%ofGDPin2019.
Highlights of the Brazilian STI system

Governance of the STI system: Brazils government has recently introduced significant changes in STI
governance. In May2016, the administration merged the science and telecommunication ministries to form
the Ministry of Science, Technology, Innovations and Communications (MCTIC). In the same month, it
launched a new National Strategy for Science, Technology and Innovation (ENCTI)201619, setting out
the countrys key challenges for STI policy: i)closing the technological gap with developed economies;
ii)strengthening institutional capabilities to increase productivity through innovation; iii)reducing social and
regionalinequalitiesinaccesstothecountrysnationalinnovationsystem;iv)developinginnovativesolutions
forproductiveandsocialinclusion;andv)promotingsustainabledevelopment.ENCTIalsoassignedpriorities
to different economic and knowledge sectors, which the government believes will leverage national
development, not only by proposing solutions to domestic issues, but also because they use the countrys
technological potential, natural resources and industrial capacity. These sectors are: defence, water, food,
biomes and bioeconomy, sciences and social technologies, climate change, ICTs, energy (including nuclear),
health,andconvergingandenablingtechnologies.
Overcoming social challenges: Brazil is working to overcome major societal challenges related to income
inequalityandpoverty,includinghighratesofyouthunemploymentandvulnerableemployment.TheDigital
InclusionProgrammeaimstoguaranteeaccesstoICTsforpoorpeoplebyprovidingtrainingandprofessional
qualifications.ItplansthecreationofAccessCentresforSocialTechnologyDevelopment(CATI),wherepeople
canimprovetheirprofessionalskills,appropriateknowledgeandaccessscientificinformation.TheCATIalsohelp
buildcollaborativeworkenvironmentsontheInternet.TheDigitalInclusionProgrammealignsICTinfrastructures
soastooptimisetheiruseandfunding.Finally,theConnectionofInfrastructureforDigitalSocialConvergence
programmeworkstostrengthensocialinclusionprojects,especiallyineducation,safetyandhealth.
Hot issues
Improvinghumanresourcesandskills:HumancapitalisamajorbottleneckintheBrazilianinnovationsystem.
The share of the adult population with tertiary education is very small (Fig.22t), and the performance of
15yearolds in science is very poor (Fig.22v), although there were marked improvements in its PISA scores
over 200312. The education system needs both expansion and improvement. Through the Brazil Scientific
MobilityProgramme(BSMP),formerlyknownasSciencewithoutBorders,Brazilhassince2011sponsored
tertiaryeducationstudiesinSTEMdisciplinesinforeigncountries,notablytheUS,Canada,theUK,Franceand
Germany.Thisinitiativeaimstogrant100000scholarshipstohelpdistinguishedBrazilianstudentsenterthe
worldsbestuniversities.ItisfundedbythefederalgovernmentorganisationHigherLevelPersonnelTraining
Coordination (CAPES)and the National Council for Scientific and Technological Development(CNPq), part of
MCTIC. In addition, the demography of PhD degree holders in Brazil has recently been evaluated to serve
as a basis for evaluating postgraduate policies and to inform the system used by universities to allocate
scholarshipsandgrants.
28 OECD, 2016
Supporting R&D and innovation in firms: Brazil is home to only a few of the world's largest R&Dinvesting
firms (Fig.22e). While it is at the forefront of hightechnology fields such as deepwater oil extraction, this
leadershipininnovationhasnotspilledovertotherestoftheBrazilianeconomy.Furthermore,thecountrys
performanceonnontechnologicalinnovation,asmeasuredbytrademarkregistration,isveryweak(Fig.22g).
TheFundingAuthorityforStudiesandProjects(FINEP)aimstoraisethelevelofR&Dincompaniesthroughthe
Company Innovate Plan (Plano Inova Empresa). The plan encourages projects that run greater technological
risksthroughcombiningcreditfinancewithnonrefundablegrantsandequityfinancing,amongothersupport
measures.WhiletheplanallocatedUSD10.7billionPPP(BRL18.5billion)in2014forcompaniesinvestmentin
productandprocessesinnovation,thebudgetincreasedtoUSD13.4billionPPP(BRL22.7billion)in2015.
Figure 22. Science and Innovation in Brazil

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OECD, 2016 29
Canada
Canada is theworlds tenthlargest economy anda global leader in energy and natural resources. However,
withshiftsinthesemarkets,inOctober2015thefederalgovernmentcommittedtodevelopinganInnovation
AgendathatwouldreshapehowCanadasupportsinnovationandgrowth.Commitmentsweremadetoexpand
supportforbusinessinnovationnetworksandclusters,promotethecleantechnologysectorandtheadoption
ofcleantechnologies,andincreasefundingtosupportinnovationandgrowthorientedfirms.InJune2016,the
federal government launched a consultation on the development of an Inclusive Innovation Agenda. This
engagement focuses on six interrelated action areas: promoting an entrepreneurial and creative society;
supportingglobalscienceexcellence;buildingworldleadingclustersandpartnerships;growingcompaniesand
acceleratingcleangrowth;competinginadigitalworld;andimprovingtheeaseofdoingbusiness.
Highlights of the Canadian STI system

Human resources and skills: Canada enjoys a strong skills foundation and performs well on several skills
indicators.Thelevelofadulttertiaryeducationalattainmentishigh(Fig.23t)andCanadian15yearoldsand
adult population rank relatively high in the PISA and PIAAC tests in science and problemsolving (Fig.23u,v).
Canada'sYouthEmploymentStrategy(YES)helpspeoplebetweentheagesof15and30yearstogaintheskills,
job experience and abilities needed for a successful transition to the workplace. YES includes three sub
initiatives(CareerFocus,SkillsLinkandSummerWorkExperience,whichincludesCanadaSummerJobs),andis
delivered through several departments, including the National Research Council (NRC) and its Industrial
ResearchAssistanceProgramme.Budget2016investedanadditionalUSD136millionPPP(CAD165.4million)
inYESin20162017.
Public R&D capacity and infrastructure: Canada has a strong universitycentred research system, which
performswellcomparedtopeers(Fig.23 a,b,c ) andiswelllinkedtoindustryfunding(Fig.23o).Withinthenext
decade,theCanadaFirstResearchExcellenceFundwillprovideUSD1.2billionPPP(CAD1.5billion)toadvance
the global research leadership of Canadian institutions. Funding is awarded following a competitive peer
reviewedadjudicationprocessinvolvingexpertsfromaroundtheworld.Since2014,thefederalgovernment
has also continued to make additional new investments in research through its granting councils, including
both funding for targeted research and, more recently in Budget2016, for investigatorled discoverybased
research,withUSD78millionPPP(CAD95million)supportgrantedannuallyonanongoingbasis.Inaddition,
the federal government provided up to USD1.6 billionPPP (CAD2billion) over three years for strategic
projectstoimprovetheresearchandinnovationinfrastructure.
Hot issues
Targeting priority areas/sectors: Climate, health and space are just some of the areas in which Canada is
makingtargetedeffortsinrecentyears.CanadahasjoinedMissionInnovation,aglobalpartnershipannounced
attheUnitedNations2015ClimateChangeConference,whichisaimedatdoublinggovernmentinvestmentin
clean energy innovation over five years while encouraging private sector leadership in clean energy. The
MissionInnovationinitiativealsoseekstobettercoordinateandreportoncleanenergyefforts.Tofullyreap
thebenefitsofpublicinvestmentinhealthresearchconductedinCanadianuniversities,andtoadvancethe
developmentofhighvaluetherapies,thegovernmentwillprovidesignificantfundingtofuelthegrowthofthe
Centre for Drug Research, support the Brain Canada Foundation for its Canada Brain Research Fund; and
supporttheStemCellNetworksresearch,trainingandoutreachactivitiestofurtherCanadaslongstanding
leadership in this research field. Opportunities for the space industry sector have also been created, with
USD311millionPPP(CAD379million)overeightyearsprovidedtotheCanadianSpaceAgencysoastoextend
thecountrysparticipationintheInternationalSpaceStationto2024.
30 OECD, 2016
Encouragingbusinessinnovationandentrepreneurship:CanadianBERDasashareofGDPdecreasedsteadily
overrecentyears,from1.02%in2009to0.80%in2014,andremainswellbelowpeers(Fig.23d),despitethe
generous Scientific Research and Experimental Development (SR&ED) tax incentive. The SR&ED tax relief
amounted to USD2.4billion PPP (CAD3.0billion) in 2014 and accounted for 82% of total public support for
businessR&D(thefigureexcludessubnationalR&Dtaxincentives).ThisisoneofthemostgenerousR&Dtax
regimesintheworldandthemostrelevantinstrumentforfinancingbusinessR&DintheCanadianpolicymix.
AspartoftheInnovationAgendasgoalstobettercoordinateandalignsupportforCanadianinnovators,the
governmentannouncedsupportforanewinitiativetohelphighimpactfirmstoscaleupandraisetheirglobal
competitiveness.ThegovernmentalsoearmarkedUSD3.3millionPPP(CAD4million)overtwoyearstorenew
theCanadianTechnologyAcceleratorInitiative,whichprovidesexpertiseandassistancetoinnovativetechnology
firmstoaccessglobalmarkets.
Figure 23. Science and Innovation in Canada

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OECD, 2016 31
China
Followingthreedecadesofanunprecedentedhighrateofeconomicgrowth,succeedinginthetransitiontoa
new growth trajectory will require an unwavering commitment not only to structural reforms but also to
making science, technology and innovation (STI) a key engine for growth. China has steadily increased STI
investment, with GERD reaching 2.05% of GDP in 2014. China has set up numerous science and technology
(S&T)programmesandfoundations,whichhaveplayedasignificantroleinenhancingthecountrysscientific
andtechnologicalstrength,improvingitscompetitiveness,andsupportingeconomicandsocialdevelopment.
The13thFiveYearPlan,launchedinMarch2016,andthe13thFiveYearPlanonScientificandTechnological
Innovation,releasedinAugust2016,establishedasetoftargetsandpoliciesforS&Tdevelopmentfor201620.
Publicbudgetsareforecasttoincreaseinthecomingyears,butataslowerpacethaninpreviousyears.
Highlights of the Chinese STI system

SupportingR&Dandinnovationinfirms:BERDasashareofGERDhasrisensignificantly,withfirmselffunded
R&D reaching 94% of BERD in 2012. The review of the implementation of the Medium and LongTerm
National Planfor S&TDevelopment(200620),carried out in2010, noted that there was a need for greater
vitalityanddrivewithrespecttobusinessparticipationintechnologicalinnovation.TheChinesegovernment
regardstheenterprisesectorasthemainbodyforinnovation,andhassteadilyincreaseddirectandindirect
support for business innovation, although equity funding still remains the most relevant instrument in the
policymix.SeveralfundingschemeshavebeenrestructuredinordertosetupanationalSMEdevelopment
fundwithUSD17billionPPP(CNY60billion).Thefundfocusesonsupportforthedevelopmentofseed,start
up and growthoriented SMEs. In April2015, China launched a national strategy for mass entrepreneurship
andinnovation,whichaimstoenablemorepeopletostarttheirownbusiness.
STI policy and governance: China is establishing an open and unified national S&T management platform,
whichconsistsofanewevaluationandinspectionmechanism.AprogrammetoevaluateNationalEngineering
TechnologyCentreshasbeendesignedusinganewsetofindicators.Chinahasalsostartedmakinguseofthe
results of STI evaluation exercises to improve S&T management and enhance the national innovation policy
design. In 2014, the China Publishing and Distribution Trading Cloud Platform was established, serving the
publishing industry chain, based on cloud computing technology. The Ministry of Science and Technology
(MOST)alsoestablishedtheNationalS&TInformationSystem,apublicinformationserviceplatformtoaccess
reports and information, including on resources and data about publicly financed R&D projects. Those
undertakingS&TprojectsreceivingpublicfundingarerequestedtosubmitrelevantS&Treports,asummaryof
theirS&TachievementsandrelevantIPinformationtotheNationalS&TInformationSystem.
Hot issues
Newsourcesofgrowth:Chinascompetitiveadvantageasaglobalmanufacturerisfacedwithachallenge,as
Chinese labour costs have increased, and multinationals, including Chinese ones, are increasingly relocating
theirmanufacturingactivitiestocountrieswithlowerlabourcosts.Toaddressthesechallengesandtoseize
theopportunityofthenextproductionrevolution,ChinalaunchedMadeinChina2025in2015,aspartof
a 30year strategy to strengthen China as a manufacturing country. This is the first in a series of national
tenyear plans, and it focuses on enhancing innovation, product quality and environmental sustainability,
optimising industrial structure and developing human resources in Chinese manufacturing. Ten key sectors
were targeted for support, including ICT, robotics, agriculture, aerospace, marine, railway equipment, clean
energy,newmaterials,biologicalmedicineandmedicaldevices.Inparallel,theInternetPlusinitiativewas
launched in 2015, with a view to digitalising major sectors of the economy and building a serviceoriented
interconnectedintelligentindustrialecosystemby2025.
32 OECD, 2016
Technologytransferandcommercialisation:WhileasignificantshareofChinaspublicresearchisfundedby
industry,signallingtheexistenceofsoundindustrysciencecooperation,ChinasuniversitiesandPRIsarenot
veryengagedinpatentingactivities(Fig.24o,p).Thegovernmentencouragesenterprisestoentrustuniversities
and PRIs with research; up to 50% of the expenditure can be deducted before income tax. Under the Law
on the Promotion and Transformation of Scientific and Technological Achievements (revised in 2015), the
government encourages R&D institutions and higher education institutions to transfer S&T achievements to
enterprises or other organisations by assignment, license, investment as a tradein, and other means. In
December 2015, Chinas State Council published an opinion on the acceleration of the development of an IPR
systemby2020.
Figure 24. Science and Innovation in China

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Univer sities and public R&D and innovation in fir ms Innovative

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fortheindicator(m)Wirelessbroadbandsubscriptions(perpopulation).ItiscomparedtovaluesofDecember2015forOECDcountries.
OECD, 2016 33
France
BusinessinvestmentpickedupinFrancein2015,andthecountryseconomystartedexperiencingamodest
recovery. However, sluggish growth in productivity and exports is still a challenge. In this context, the
governmentiscontinuingtopromoteinnovationledgrowththroughitsSTIpolicy,andhasreinforceditsSTI
strategiesandpoliciespromotingbusinessR&Dandthedevelopmentofyoungfirms.
Highlights of the French STI system

Contributingtostructuraladjustment:ThesecondphaseoftheNewIndustrialFranceProgramme(Nouvelle
France industrielle, NFI), announced in April 2015, focuses on nine industrial solutions (ecomobility, data
economy, smart objects, medicine of the future, sustainable cities, digital trust, new resources, transport of
tomorrow,andsmartfoodproduction).Italsoincludesacrosscuttinginitiative(IndustryoftheFuture)forthe
modernisationandtransformationofindustrialenterprises.Theninesolutionswillreceivegovernmentfunds
tocommercialisenewtechnologiesfromtheInvestintheFutureProgramme(Programmedinvestissements
davenir, PIA). The second phase of the NFI aims to concentrate public and private efforts to modernise
industrial assets and transform firms business models in these sectors to 2020. A complementary plan, the
New Deal for Innovation (2013), is promoting the evaluation of public policies (through the C2IT and CNEPI
publicbodiescreatedin2014)andanentrepreneurialculture(throughBourseFrenchTechcreatedin2014),
andimprovingtheframeworkconditionsfortechnologytransferandthegrowthofinnovativefirms.
Boostingthereturnstoscience:France'spublicR&DexpenditureasashareofGDPcompareswelltoitspeers
(Fig.25a ), and French PRIs file a relatively high amount of patents (Fig.25p ). To leverage this favourable
position,Frenchpolicyiscontinuingtostrengthenthecommercialisationofpublicresearchintheinterestof
increasingbusinesscompetitivenessandaddressingsocietalchallenges.TheNationalResearchAgency(ANR)is
providingongoingsupporttoPRIseffortsoncommercialisingresearch,followingthemajorchallengessetout
by the France Europe 2020 Agenda. In particular, in 2016 the ANRfunded Carnot Institutes programme
(foundedin2006)granted29multidisciplinaryinstitutesadditionalfundingthatrewardedindustrialpartnerships.
The same year, the ANR introduced a new label CarnotSpringboards, granting nine research centres with
fundstostrengthentheircapacitytodeveloppartnershipswiththeprivatesector.
Hot issues
Innovativeentrepreneurship:Franceperformsaveragelyininnovativeentrepreneurshipaccordingtoseveral
indicators(Fig.25h,i,j ).Anumberofinstrumentsaimatimprovingtheconditionsforthecreationandgrowthof
startups.Bpifrance,thecountryspublicinvestmentbank,providesfinancialsupportforstartups(including
seed capital loans) and renewed support for the venture capital sector with funds of funds (national seed
capital fund, multicap croissance). Bpifrance also provides direct investment funds for ICT firms (Ambition
numrique) and biotechnologyintensive firms (Innobio). In particular, the French Tech initiative aims to
acceleratestartupgrowththroughacceleratorprogrammes(FrenchTechAcclerationandPassFrenchTech)
and innovation grants (Bourse French Tech, operated by Bpifrance). In 2011, a fund of funds (FNA), with
USD711million PPP (EUR600million) was established for seed capital. It has invested notably in digital
technologies,lifesciencesandcleantechnology.
Globalisation: Increasing the exposure of French researchers and firms abroad remains a key policy goal.
Followingthe2013highereducationlaw,theInternationalTransversalGroupforDialogue(GCTI)wasredefined
in2015withthemissionofsteeringtheinternationalresearchandinnovationstrategy.Over201314,about
13800 students were part of the International Mobility Support programme, which supports study in
foreigncountries.ThechairsofexcellencecontinuetoallocateuptoUSD2.4millionPPP(EUR2million)to
selectedforeignresearchersforaperiodof1848monthsinFrance.Bpifrancehasintensifiedeffortsforthe
34 OECD, 2016
internationalisation of French firms by broadening access to export credit since 2013; by end 2016, this
institutionwillalsostartmanaginggovernmentexportguarantees,seekingtosimplifyandexpandcompanies
accesstoexportfinancing.Moreover,inJanuary2015severalexportpromotionfundsweremergedtocreate
BusinessFrance,anagencyaimingtoassistSMEstobetterprojectthemselvesinternationallyandattractmore
investorstoFrance.TheFrenchTechinitiativealsoaimstopromotetheinternationalisationofSMEsthrough
fundsfromtheNFIssecondphase,byfosteringentrepreneurialhubsacrosscitiesworldwideandthrougha
seedacceleratorprogrammethatencouragesforeignentrepreneurstoestablishthemselvesinFrance.
Figure 25. Science and Innovation in France

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OECD, 2016 35
Germany
Germany'seconomicgrowthreboundedquicklyfollowingtheglobalfinancialandeconomiccrisisin2009,but
investment an important driver of productivity growth has been slow to recover. In light of weakening
growth in labour productivity and an imminent decline in the labour force as a consequence of ageing,
Germany needs to promote and invest in productivityboosting STI policies. The government has gradually
shiftedthefocusofitsHighTechStrategy(HightechStrategieHTS):whileinitiallyattendingtothemarket
potentialofspecifictechnologyareas,asof2010theHTSconcentratedespeciallyonsociety'sneedtodevelop
andimplementforwardlookingapproachestopolicies,whilethethirdedition,adoptedinAugust2014,sees
civilsocietyasathirdactor,alongsideindustryandresearch,andfocusesonanumberofnewtopics(suchas
thedigitaleconomyandsociety,asustainableeconomyandenergysystem,theinnovativeworkplaceandcivil
security).ThecountrysupwardtrendinR&Dexpenditureiscontinuing:in2014,Germanyspent2.90%ofGDP
onR&D,upfrom2.73%in2009.GERDistargetedtoreach3%ofGDPby2020.Inthecurrentlegislativeperiod
anadditionalUSD3.8billionPPP(EUR3billion)isbeingspentonR&D,despiteongoingfiscalconsolidation.
Highlights of the German STI system

Improving knowledge transfer: German industry and science already have strong links, and a very high
proportion of public research is funded by industry (Fig.26o). The HTS aims to improve regional, national
and international networking between science and industry; initiatives include funding efforts for the
internationalisation of clusters, developing technologyspecific open innovation research programmes and
dualvocationaltrainingsystems,andcreatingincentivesforpublicprocurementbymunicipalities.In2015,a
programme (Validierung des technologischen und gesellschaftlichen Innovationspotenzials wissenschaftlicher
Forschung VIP+) was launched that is intended to support validation of results of basic public research in
terms of feasibility and economic or societal impact, open up possible fields of application, and inspire
academics concerning the economic and social relevanceof their research results. The programmeprovides
grantsforprojectswithamaximumdurationofthreeyears.
Targetingpriorityareas/sectors:Germanyholdsaninternationallyleadingpositionintheestablishmentofa
biobasedandsustainableeconomy,forwhichtheNationalResearchStrategyBioEconomy2030haslaidthe
foundations since 2010. As an interdepartmental strategy, it comprises a series of funding initiatives and
programmes set up by ministries on federal and state levels. Since 2012, the federal government has put
forward a crossdepartmental policy strategy for achieving greater cooperation, with a Global Bioeconomy
SummitheldinBerlinin2015.TheEnergyTransition(Energiewende),whichpledgesthetransformationofthe
energysupplysystem,continuestobeoneoftheflagshipsofthefederalgovernmentsEnergyConcept,set
outinSeptember2010,andtheenergypolicyresolutions,adoptedbyParliamentin2011.TheEnergyConcept
istobegraduallyrolledoutupto2050,andsetsgoalsforelectricity,heatandtransport.Thefocusisontwo
coreobjectives:i)energyshouldbeusedmoreefficiently;andii)energysuppliesshouldbeincreasinglybased
onrenewableenergies.
Hot issues
ICT and Internet infrastructure: The coverage of fixed and mobile broadband infrastructure is uneven in
Germany,thelatterbeingparticularlyweakcomparedtopeers (Fig.26l,m).GermanysDigitalAgenda201417
aims to strengthen the security of online services via secured ICT infrastructures and to reinforce the IT
securityindustry.Inanattempttomeettherisingneedforstrongerproductivitygrowthandtofullybenefit
fromdigitisation,thisAgendaincludesinitiativestoincreasedigitisationandautomationinmanufacturingand
measurestopromoteinformationonbestpracticesforindustryandsmartserviceapplications.Moreover,it
aims to improve coordination and interoperability between key stakeholders and their IT systems and to
addressemergingITsecurityrisksrelatedtotheincreasingdigitisationofthehealthcaresystem.
36 OECD, 2016
Skills for innovation:At over 41million, the number of employees on the German labour markethas never
beenhigher.Atthesametime,somesectorsandregionslackqualifiedprofessionals.Accordingtoanalytical
evidencegatheredbyGermany,by2025demographicchangesareexpectedtoresultinashortfallofseveral
millionworkers,whiletheeffectiveintegrationofnewlyarrivedimmigrantsintothelabourmarketwillrequire
a major effort. A number of measures aim to counteract the emergence of shortages of workers with the
requiredskills;theseinclude:i)theNationalPactforWomeninSTEMCareers,launchedin2008andnowin
phasethree;ii)severalnewstatelevelinitiativestopromoteSTEMinsecondaryschools;andiii)nationwide
school student and youth competitions, devised to select participants in the respective International
Olympiads,includinginphysics,mathematicsandchemistry.
Figure 26. Science and Innovation in Germany

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OECD, 2016 37
India
India is one of the world's largest, fastgrowing emerging economies, with a rapidly increasing population.
Thankstostrongeconomicgrowthfornearlyadecade,povertyhasbeencutinhalf.Growthfalteredbetween
2012and2014;nevertheless,futuregrowthprospectslookgood,althoughpovertycontinuestobeamajor
challenge. Innovation is seen as critical to Indias socioeconomic development. India's 12thFiveYear Plan
seekstoaddresssocialchallenges,especiallypovertyandexclusion,bycatalysingagrowthprocessthatwill
promotemoreinclusiveandsustainabledevelopment.TheDepartmentofScience&Technology(DST)together
withtheMinistryofHumanResourceDevelopment(MHRD)haveimplementedaseriesofImpactingResearch
InnovationandTechnologyprojects(IMPRINT)thatwilladdressmajorsocietalanddevelopmentalneedssuch
ashealthcare,ICT,energy,sustainablehabitat,waterresourcesandriversystems,securityanddefence,and
theenvironmentandclimate.
Highlights of the Indian STI system

Innovationtoaddresssocialchallenges:Inclusiveinnovationinitiativesthatfocusoninnovationoutcomes
whichbenefitpoorandexcludedgroupsreceiveparticularattentioninIndia,asdotheinnovationactivitiesof
the poor themselves. Indias Inclusive Innovation Fund of USD3.2 billion PPP (INR50billion) supports the
development of innovative solutions targeting the bottom 500million, while the National Innovation
Foundation(NIF)supportsgrassrootsinnovators,i.e.peoplefrompoorandexcludedgroups,atvariousstages
of the innovation process. With respect to health, India encourages the utilisation of indigenous systems of
medicine. The NIF, with the help of the Massachusetts Institute of Technology in Boston, has set up an
augmented fabrication laboratory to support herbal technology R&D. The NIF helps farmers patent their
innovationsandmaintainsanonlinedatabaseontechnologicalideas,innovationsandtraditionalknowledge
practices,includingtraditionalmedicationspreparedfromlocallyavailablebiologicalresources.
DesignandimplementationofSTIpolicy:TheMinistryofScienceandTechnologyoperatesthreedepartments
thathaveawiderangeofactivities,includinghumanandinstitutionalcapacitybuilding,communityengagement
andSTIpolicysupport:theDST,whichplaysapivotalroleinpromotingS&T;theDepartmentofScientificand
IndustrialResearch(DSIR),whichsupportsindustrialR&Dandtechnologytransferactivities;andtheDepartment
ofBiotechnology,whichpromotesS&Tinthebiotechnologyarea.TheDSThasgivenemphasistoaligningits
activitieswiththenationalagendainvariouspolicydomains(e.g.MakeinIndia,StartupIndia,DigitalIndia,
CleanIndia,etc.).In2015,thegovernmentreleaseditstechnologyroadmapto2035,whichidentifies12high
impacttechnologyareasandprovidesacommonvisionofSTIscontributiontoIndiasfuture.
Hot issues
Universitiesandpublicresearch:Indiahasoneofthelargestpublicresearchsystemsintheworld:intermsof
absolute R&D expenditure by the higher education and government sectors, it is larger than in France and
almostaslargeasinJapan.However,inrelativeterms,Indiahasfewerworldclassuniversitiesandaweaker
S&Tpublicationrecordinleadinginternationalacademicjournalsincomparisontoemergingeconomiessuch
asBrazil,ChinaandSouthAfrica(Fig.27b,c).Aspublicresearchinstitutionsaregovernedbytheministriesin
charge of sectoral research areas, there is no consolidated public research budget and no central research
funding body. The budget for PRIs has recently declined in real terms, but evaluations are being used in an
increasinglysystematicwaytoassessresearchperformanceinuniversities.
Innovative entrepreneurship: India has a preponderant informal sector and many small lowproductivity
firms that are unable to exploit economies of scale. The regulatory and administrative framework for
entrepreneurship in India is complex (Fig.27j), and stringent labour laws plus frequent changes in tax laws
undermine business activity. In early 2016, the government announced the launch of the Startup India
38 OECD, 2016
initiative with a view to spreading startup dynamics from the digital sector to other sectors, including
agriculture, manufacturing, the social sector, healthcare and education, and from large cities to semiurban
and rural areas. Startup India intendsto cut redtape, create a onestop shop for knowledge exchangeand
access to funding, develop a fasttrack patent application procedure for startups and facilitate startups
access to public procurement. It also aims to improve access to funding for startups, and offers promotion
servicesandimprovedconditionsforsettingupincubators,researchparksandacademicspinoffs.
Figure 27. Science and Innovation in India

Top/Bottom 5 OECD values Middle range of OECD values OECD median India

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Notes:NormalisedindexofperformancerelativetothemedianvaluesintheOECDarea(Indexmedian=100).ForIndia,2012valueswereused
fortheindicator(m)Wirelessbroadbandsubscriptions(perpopulation).ItiscomparedtovaluesofDecember2015forOECDcountries.
OECD, 2016 39
Indonesia
TheIndonesianeconomyreliesmainlyontheexploitationofthecountry'srichendowmentsofnaturalresources,
anditsexpansionisthereforetiedtodevelopmentsonglobalcommoditiesmarkets,asprimarycommodities
accountformorethanhalfofitsexports.Indonesiahasenjoyedstrongandstablegrowthoverthepastdecade,
withGDPgrowthratesabove5%annuallyuntil2014,andthecountryhastakenimportantstepstowardfurther
opening up its economy. The Vision and Mission of Indonesia S&T Statement (200525) sets out a common
visionforimprovingIndonesiasglobalcompetitivenessandfosteringitstransitiontowardaknowledgebased
economy.TheThirdNationalMediumTermDevelopmentPlan(RPJMN,201519)isattheheartofthegovernments
agendatostimulateinclusive,sustainablegrowthanditsplanstoboostthefurtherdevelopmentofSTIin100
regions. Recent policy emphasis on the role of S&T for achieving national economic development aims to
encouragegreaterR&Dinvestmentinthefuture.
Highlights of the Indonesian STI system

Newsourcesofgrowth:Indonesiahasbecomeaglobalplayerinmanykeyfarmandfoodmarkets(e.g.palm
oil,rubber,fisheryproducts).Thegovernmentispromotingresearchinsyntheticbiologyforthegenerationof
newcropandgrassvarieties.TheIndonesianInstituteofSciences(LIPI)hassteppedupitsresearchactivities
ondroughtandfloodtolerantricevarietiestomitigatetheimpactsofclimatechange.Recentachievements
includethedevelopmentofatransgenicdroughttolerantvarietyofsugarcane.Anewprogramme,Agrifarm
Training,providesseedcapitalandtrainingforthedevelopmentofatechnologybasedbusinessinthissector,
andthegovernmentisalsopromotingseveralfieldsofresearch,includingelectricalcars,biorefineriesandthe
useofmicrobestoproducebioethanol.
ICTandInternetinfrastructure:TheIndonesianarchipelagothatencompassesthousandsofislandshasfaced
persistentproblemsintermsofbasicinfrastructure.Fixedbroadbandinfrastructuresare,forinstance,highly
undevelopedandfragmented(Fig.28l).InOctober2014,thegovernmentlaunchedtheIndonesiaBroadband
Plan,whichaimstoprovide fixedbroadbandaccesstoallgovernmentoffices,hotels,hospitals,schoolsand
public spaces by 2019, with a speed of at least 2 Mbit/s. In addition, investment in data centres and cloud
computing technologies by local industries has gained momentum. The government is considering giving a
boosttothistrendbydevelopingincentivesforattractingFDItotheICTsector.
Hot issues
SupportingR&Dandinnovationinfirms:ManyIndonesianfirmsdonotengageininnovation,asindicatedby
thelowintensityofBERDandtheverylownumbersofpatentsfiledandtrademarksheld(Fig.28d,f,g).R&D
performing companies are concentrated mostly in the manufacturing sector, which is dominated by SMEs
characterisedbymediumlowandlowtechnology.Indonesiasindustrialstructurecombinedwiththelackof
multinationals investment in R&D (Fig28e) seriously limits the prospects for the development of business
R&D.In2013,aPresidentialDecreereneweda2007Governmentregulationthathadintroducedincentivesto
encourageprivatefirmstoconductR&Dandinnovativeactivitiesandtodiffusetechnology.Theseincentives
consistofbothfiscalelementsandtechnicalsupportforR&D,includingaccesstopubliclaboratoryequipment
andinstrumentsorpersonnel.ThegovernmentplanstofurtherincreasepublicfundingforR&Dandinnovation
within the next five years, as the policy focus moves towards S&Tdriven competitiveness. New funding
instrumentsareincreasinglyinuse,includingcompetitivegrants,debtfinancingandrisksharingmechanisms,
as well as a number of tax incentives. Recently, Indonesia has also consolidated its funding schemes for
businessinnovationandreviseditspublicprocurementarrangementssoastomakethemmoreflexibleand
accessible. An Electronic Procurement Agency (LPSE) provides an electronic procurement system aimed at
easingandsupportingprocurementprocedures.
40 OECD, 2016
Building a broad innovation culture: Human resources are a major weakness of Indonesia's STI system.
Althoughexpendituresoneducationhaveincreasedsteadilyoverthepasttwodecades,thecountrystilllacks
skills to support knowledgebased growth (Fig.28s,t,u). Indonesia is aiming to build a stronger culture for
innovation through education, awarenessraising and the design of more participatory policies. Education
curriculahavebeenrevisedinhighschoolsanduniversitiessoastoraisescientificliteracyandinspirestudents
withanentrepreneurialspirit.TheScienceforAllprogramme,forinstance,aimstomaketeachinginhighschool
science moreattractive. The governmenthas also implemented a new training programme on procurement
andentrepreneurship,andentrepreneurshipisbeingencouragedthroughawardsandcompetitionsorganised
jointlywithprivateactorsandinternationalbodies.
Figure 28. Science and Innovation in Indonesia

Top/Bottom 5 OECD values Middle range of OECD values OECD median Indonesia

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(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

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(k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) (w)

Note: Normalised index of performance relative to the median values in the OECD area (index median=100). 2012 data was used for
indicator(m)Wirelessbroadbandsubscriptions(perpopulation).ItiscomparedtothevaluesforDecember2015forOECDcountries.
Forindicator(j)Easeofentrepreneurshipindex,the2008valuewasused,comparedto2013valuesforOECDcountries.
OECD, 2016 41
Italy
Italyhascontinuedthestructuralreformsandfiscalconsolidationundertakensince2011toputtheeconomy
onasustainablegrowthpath.LabourproductivityhasstagnatedinItalysince2005andtheeconomicrecovery
willdependnotablyontheeffectivenessofpublicinitiativestostimulateproductivityandprivatedemandand
to facilitate the availability of bank credit. The governments decree law Sblocca Italia (September 2014)
introduced a series of provisions aimed at supporting the national productive sector and boosting
competitiveness.Themajoractionsfundedthroughthedecreelawinclude:i)strategicinfrastructures,railway
and highway networks; ii)new social security benefits/provisions; iii)the internationalisation of enterprises;
iv)interventionsagainsthydrogeologicalinstabilityandforenhancingwaterinfrastructures;v)amoreefficient
exploitation of national oil and gas resources; vi)the renovation of buildings; and vii)energy recovery from
waste.TopSTIpolicyprioritiesincludeanincreaseinpublicinvestment,therelaunchoftheindustrialsystem,
reducingunemployment,andreformofeducationandresearch.
Highlights of the Italian STI system

Improvingframeworkconditionsforinnovation:IntheframeworkoftheEuropeanDigitalAgenda,Italyhas
developed a national strategy for fostering its digital culture and economy. The Agency for Digital Italy
(AgenziaperlItaliaDigitale)wasestablishedinMarch2012,andtheCouncilofMinisterslaunchedtheDigital
Growth Strategy (Strategia per la crescita digitale 201420) to make ultrabroadband subscriptions more
attractive.ParticularemphasishasbeenplacedonthenextItaliaLogInplatform.Thistoolwillgroupallpublic
administration services for citizens and enterprises in a onestop shop, and will be open for contributions
fromallthepublicadministrationagencies.
Universitiesandpublicresearch:Italyhasarelativelyhighshareoftopuniversities(Fig.29a,b,c),althoughits
public R&D expenditure is lower than many of its peers, as is its research output in terms of international
publications in top scientific journals. In 2015, Italy's new multiannual National Research Programme (NRP)
201520setoutobjectivesandmodesofimplementationforallpublicresearchactivities.Currently,theMinistry
for Education, University and Research (MIUR) plans to invest aboutUSD3.3billionPPP (EUR2.5billion) by
2020, along six axes: i)internationalisation; ii)human capital; iii)research infrastructure; iv)publicprivate
partnerships;v)southernItaly;andvi)theefficiencyandqualityofexpenditure.ANationalPlanforResearch
Infrastructure (201520) has also been developed that aims at defining a national roadmap and prioritising
public investment on research infrastructure. To improve bottomup interdisciplinary research in the public
sector,USD135millionPPP(EUR100million)hasbeenallocatedfor2016underthePRIN2015scheme,which
isintendedtobereiteratedannually.
Hot issues
SupportingR&Dandinnovationinfirms:TheItalianbusinesssectoraccountsforbarelyoverhalfofGERD,a
lowshareforanindustrialisedeconomy.Asetofinnovativefirmscoexistswithalargemajorityofsmalland
microenterpriseswithlowproductivity.TheItaliangovernmenthasdeployedabroadrangeoffinancialtools
tosupportbusinessR&Dandinnovation,withpriorityrecentlybeengiventoreformingthetaxportfolio.The
2015 Stability Law (L190/2014) introduced a 25% tax credit, granted on incremental investments in R&I
incurredbyenterprisesduringtheperiod201519.Thetaxcreditisincreasedto50%ifnewinvestmentsare
relatedtohiringhighlyqualifiedpersonnel.AspartofthesameStabilityLaw,thegovernmenthasgranteda
totalofUSD4.7billionPPP(EUR3.5billion)infiscalincentivestoprivateemployerswhopermanentlyhirenew
personnel. The Stability Law also reduces the regional tax on productive activities. Similarly, the Patent Box
(Ministerial Decree of 30 July 2015) provides incentives through an optional system of taxation for income
derivedfromtheuseofintellectualproperty,industrialpatents,trademarks,designsandprocessesinlegally
protectablefieldsinindustry,commerceandscience.
42 OECD, 2016
Globalisation: Italy is weakly integrated into international knowledge networks, as is reflected in its poor
performanceininternationalcoauthorshipandcopatenting(Fig.29q,r).Over201416,Italyhasreinforcedits
network of bilateral and multilateral agreements for scientific and technological cooperation with partner
countries,coveringalmostallEuropeanandagrowingnumberofnonEuropeancountries.Strengtheningthe
internationalisationofItalianuniversities,PRIsandbusinessesisalsoanaimofDestinationItaly.Since2013,
the ITAItalian Trade Agency has been supporting the internationalisation of Italian firms and in 2015
the Ministry for Economic Development (MISE) committed funding (Decree of 1 July) to consortia for
internationalisation to support SMEs in foreign markets and promote the international spread of their
productsandservices.
Figure 29. Science and Innovation in Italy

Top/Bottom 5 OECD values Middle range of OECD values OECD median Italy

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(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

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OECD, 2016 43
Japan
Aftertwodecadesofsluggishgrowth,despiterecentsignsofreneweddynamism,Japan'sgrowthprospects
(projectedtobe0.6%in2016and0.7%in2017)arestillcloudedbyanageingpopulation,ahighnationaldebt
andothersocioeconomicchallenges.The5thS&TBasicPlan(201620),preparedbytheCabinetOfficewith
theinputofexperts,identifiessustainabledevelopment,thesafetyandsecurityofthecountryanditspeople,
climatechangeandbiodiversityasoverarchingfieldsfordeterminingamediumtolongtermSTIstrategy.As
theworldsthirdlargesteconomyaftertheUnitedStatesandChina,JapanisalsotheworldsthirdmostR&D
intensivecountry,with3.59%ofGDPdedicatedtoR&Din2014.ThegovernmenthassetatargetforGERDof
4%ofGDP,aboutUSD246billionPPP(JPY26trillion),by2020.
Highlights of the Japanese STI system

Addressingsocietalchallenges:Japan'sComprehensiveStrategyonSTI,establishedinMay2016,focuseson
shaping a worldleading super smart society (Society5.0) that addresses both economic development and
societalchallenges.TheComprehensiveStrategywillberevisedannuallytofacilitateflexiblepolicymanagement.
Inthefieldofhealthcareandmedicine,thegovernmentisseekingtobecomeahealthcountrywithworld
class health and medical technology and improved medical supply. The Research Centre Network for
RealisationofRegenerativeMedicinewaslaunchedin2013toadvanceinducedpluripotentstemcellresearch,
whichhasbeenadministeredbytheJapanAgencyforMedicalResearchandDevelopmentsince2015.Japan
also promotes preventive medicine and supportive nursing, in addition to medical treatment. The 3rd Basic
Programme for Shokuiku Promotion was established in March2016 and encourages education on food and
nutrition.IntermsofbuildingmodernR&Dframeworks,newinfrastructuresthatusecuttingedgetechnologies
(e.g. information technologies) and integrated approaches (e.g. Smart Life Project) are being developed to
meettheneedsofanageingpopulation.
Improvingframeworkconditionsforinnovation:JapanhasrecentlyreinforcedtheIPlegislativeframeworkin
lightoftheglobalmomentumtoharmoniseIPsystemsacrosscountries.ThePatentLawwasamendedin2015
toenhancereliefmeasuresandtoestablishanewsystemthatenablesanypersontofileanoppositiontoa
grantedpatentwithinsixmonthsfromthedateofpublicationofthegazetteofthepatent.Undertherevised
Design Act, applicants will be able to file single applications to register their designs in multiple countries.
UndertherevisedTrademarkAct,legalprotectionwillbeexpandedsothatnontraditionaltrademarkswillbe
givenprotection,andmoreentitieswillbecomeeligibletoregisterregionalcollectivetrademarks.In2013,the
JapanPatentOffice(JPO)introducedasystemofcollectiveexaminationforIPportfoliostoexaminecross
sectional applications. The JPO revised the examination guideline in terms of simplification, clarification,
greaterinformationaboutsamplecasesandinternationalacceptabilityin2015.
Hot issues
Strengtheningpublicresearch:JapanspublicR&DexpenditureperGDPamountedto0.75%in2014(Fig.30a),
a relatively stable level since 2000 but modest in light of Japans high GERD intensity. Applied R&D and
experimentaldevelopmentabsorbedabout70%ofpublicR&Dexpenditurein2014andbasicresearchabout
30%.However,thenumberofuniversitiesofglobalstature,thelevelofpublicationsintopacademicjournals
andtheinternationalmobilityofresearchersranklow(Fig.30b,c).Toaddresstheproblemofyoungresearchers
having few opportunities to secure stable academic positions, the Programme to Distinguished Researchers
waslaunchedin2016toensurestableemploymentandanindependentresearchenvironment.Itaimsbothat
creatingnewcareerpathsacrossindustry,universitiesandthenationalresearchsystemandatdevelopinga
new agency for excellent researchers. Similarly, the 5th S&T Basic Plan follows the 4th edition in fostering
worldclassbasicresearch,withemphasisonthedevelopmentandshareduseofadvancedresearchfacilities
aswellasopendataandopenscienceinfrastructures.
44 OECD, 2016
Skillsforinnovation:Japanhasasoundskillsfoundationwithalargepoolofuniversitygraduates(Fig.30t)and
high scores on international assessments of adults in technology problemsolving and of young students in
science(Fig.30u,v).However,therearerelativelyfewdoctoralgraduatesinscienceandengineering(Fig.30w)
owingbothtothelowparticipationofyouth(especiallywomen)indoctoralprogrammesandtothelackof
interest among youth in S&T studies. Japan has sought to improve the attractiveness of research careers,
including for women. The Initiative for Realising Diversity in the Research Environment supports the
integrationoffemaleresearchersinsciencewomenaccountedforonly14.7%ofallresearchersinJapanin
2015accordingtonationalstatisticsbyimprovingtheworkingenvironmentsothatfemaleresearcherscan
balancechildbirth,childrearingandnursingcarewithresearch.
Figure 30. Science and Innovation in Japan

Top/Bottom 5 OECD values Middle range of OECD values OECD median Japan

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OECD, 2016 45
Korea
Korea weathered the global crisis better than most economies, and it is the worlds most R&Dintensive
country,withGERDat4.29%ofGDPin2014.Koreadoesneverthelessfacesomechallenges:slowinggrowth,
risinginequalityandunemployment,arapidlyageingsocietyandemergingenvironmentalproblems.The3rd
S&TBasicPlan(201317)setsoutthegovernmentsroadtoeconomicprosperityandpublicwellbeingwith
theHighFiveStrategytoaddresslongtermchallenges.Itsactionplanwasestablishedin2015.Furthermore,
the Creative Economy Initiative introduced a major STI policy governance reform and new policy initiatives.
CreativeEconomyisastrategytoshiftKoreasgrowthparadigmfromanindustrialeconomytoaknowledge
economy by unlocking the productive potential of national STI and cultural ecosystems. In particular, the
highest priority is given to advancing the S&T and ICT sectors and to refocusing Koreas research and
innovationsystemonentrepreneurshipandtheinnovativeapplicationoftechnology.
Highlights of the Korean STI system

Fosteringsustainable/greengrowth:Koreahasbeenattheforefrontofgreengrowthinitiativesandaimsto
be a hub for global green growth. The government approved the 2nd National Energy Plan in 2014, which
providesalongtermstrategythatwilldeterminethedirectionofthecountrysenergypolicy.Theplanshiftsthe
focusfortheenergymanagementsystemfromacentralised,supplysideorientationtoadistributed,demand
sideapproach.The10YearEnergyTechnologyDevelopmentPlan(201423)hasabudgetofUSD20billionPPP
toassistinthecreationofanewenergyindustryandinnovationecosystem.Partofthisisestablishinganew
R&D system in terms of supplydemand convergence, encouraging the commercialisation of technology
throughamorestrategicalignmentofresearchwiththemarket,andbuildingcapacityandanecosystemfor
collaboration between central government, regional government, stateowned enterprises and government
fundedresearchinstitutes.TherelatedTransitionStrategy(201517)hasbeenallocatedUSD500millionPPP
frompublicbudgets,withmatchingUSD1billionPPPfromprivateandstateownedenterprises,topromotea
new,sustainableenergyindustryecosystemthatcouldcreate14000newjobsby2017.
ICTandInternetinfrastructures:KoreahasastrongrevealedtechnologyadvantageinICT,withalmosthalfof
businessR&Dperformedbythecomputer,electronicsandopticalindustries.Thegovernmentisplanningto
furtherincreaseR&Dinvestmentinthesoftwareindustryandtocreateasoftwareecologybyestablishinga
softwarebank,nurturingtalentandcultivatinganenvironmentfortechnologyproliferation.Thegovernment
hasalsopledgedtofosterconvergenceinICTthroughtheICTConvergenceFlagshipProject(e.g.nextgeneration
game,ScreenX,andThemePark)andtheSoftwareConvergenceProject(e.g.shipbuilding/marineengineering
andhealthcare).
Hot issues
Skillsforinnovation:Koreahasinvestedheavilyinhighereducationandranksthirdintheworldintermsof
the share of GDP spent on higher education (Fig.31s). However, the Korean education system has mixed
results.Forexample,despitealargeshareoftertiaryqualifiedadults,adultstechnicalproblemsolvingability
isaverage(Fig.31t,u),andwhile15yearoldsperformwellinscience,therateofengineering(S&E)doctorates
is modest (Fig.31v,w). The government hasdeveloped a Comprehensive Plan for the Scientifically Gifted and
Talented(201317)toidentifypupilswithhighpotentialandtonurturetheircreativity.TheFiveYearPlanfor
UniversityStartups(201317)aimstoimproveentrepreneurialeducationinsecondaryschoolsanduniversities.
The National Scholarship programme and the 3rd Women S&E Promotion Basic Plan (201418) have been
launched to increase youth participation in the field of science and engineering in higher education. The
governmentisalsoimplementingvariousinitiativestoattractyoungscientistsandengineerstoSMEs,e.g.by
establishingaonestopinformationnetworkforjobmarketsandencouragingthepreemploymentofstudents.
46 OECD, 2016
Strengtheningthepublicresearchsystem:WhileKoreaspublicR&Dexpenditureishigh,itstillhasfewworld
classuniversitiesandproducesfewhighimpactpublicationsincomparisontopeers(Fig.31a,b,c).Onereasonis
that the public research system has historically been skewed towards applied and developmentoriented
research, much of which is performed in the public research institutes that supplytechnologyforindustrial
R&D. The government has increased investment in basic research, from 30% of total government R&D
investment in 2008 to 36% in 2015, with a target of 40% by 2017. At the same time, the government is
encouraging the PRIs to leverage funds from collaboration with the private sector and to develop industrial
technologyresearchcontracts.
Figure 31. Science and Innovation in Korea

Top/Bottom 5 OECD values Middle range of OECD values OECD m edian Korea

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OECD, 2016 47
Mexico
TheMexicangovernmentiscontinuingtoreinforcetheinstrumentsandstrategiessetforthbytheNational
DevelopmentPlan(PND)(201318)forensuringsustainablesocioeconomicgrowth.TheSpecialProgramme
forScience,TechnologyandInnovation(PECITI)(201418)wasdesignedtotransformMexicointoaknowledge
based economy by: i)increasing national investment in STI; ii)forming highly qualified human resources in
science and technology (HRST); iii)strengthening regional development; iv)promoting scienceindustry
linkages; and v)developing the S&T infrastructure. The federal government budget for STI is expected to
increaseby25.6%during201418,withGERDsettoriseto1%ofGDPby2018.
Highlights of the Mexican STI system

Strengtheningpublicresearch:Mexicoistakingsignificantstepstoboostitspublicresearchsystem.Recognising
theimportanceofstrengtheningthescientificandtechnologicalinfrastructure,thegovernmentincreasedits
funding from USD37millionPPP (MXP285million) in 2011 to USD140million PPP (MXP1097million) in
2013. To improve the performance of its public research system, the Council for Science and Technology
(CONACYT),theprincipalbodyinchargeofMexicosSTIpolicy,created799newresearchpositionsinpublic
universitiesandPRIsduring20142015.Thegoalofthisprogrammeistoincreasetheshareofyoungresearchers
inpublicresearch.In2014,theNationalSystemofResearchers(SNI),whichrecognisesexcellenceinresearch
andprovidesmonetaryrewardstotoplevelresearchers,wasextendedtoresearchersinprivateuniversities.
Globalisation:Mexicoisveryopentoworldmarketsandwellengagedininternationalcopatentingactivities
(Fig.32r), although itsconnections with the global academic community through internationalcoauthorship
areloose(Fig.32q).TheCONACYTmaintainsdiversemultilateralandbilateralcooperationagreementsandhas
providedvariousscholarshipsaimedatencouraginginternationalmobilityatthehighereducationlevel.Areasof
researchcooperationincludegeothermalenergy,ICTandhealth,inparticularchronicdiseases(e.g.diabetes),
andinfectiousdiseasepreparedness.TheInternationalScholarshipsprogrammesupported4196beneficiaries
conductinggraduateprogrammesabroadin2013.WhileMexicoisstillintheprocessofdefiningaconcrete
institutionalpolicyfortheinternationalisationofitsSTIsystem,itsparticipationintheEuropeanHorizon2020
programmeprovidesamajoropportunityforinternationalisingitsresearchsystem.Tosupportcapitalisingon
this opportunity, the CONACYT provides additional funding to institutions and researchers that have been
awardedH2020grants.
Hot issues
Improvinghumanresourcesandskills:PublicexpenditureonhighereducationasashareofGDPiscomparable
topeers(Fig.32s).However,anumberofindicatorssuggesttheneedtoimprovethescaleandqualityofthe
educationsystem(Fig.32t,v,w).TheCONACYTiscontinuingtoaddressthechallengeofimprovingthequalityof
HRSTthroughseveralinitiatives.TheYoungTalentsprogramme,introducedin2014,providesscholarshipsfor
graduate studies in Mexico or abroad, fosters the creation of S&Toriented programmes and promotes
MexicanHEIsinternationally.TheNationalProgrammeofQualityGraduateProgrammes(PNPC)iscontinuing
toimprovethequalityofthegraduateprogrammesofferedbyHEIsandPRIsthrougharigorousaccreditation
process based on international standards. In 2015, the PNPC launched a call to recognise postgraduate
programmes with strong industry linkages that meet quality standards. Some 22 courses have already been
approved,whileotherscontinuetobeevaluated.
Encouragingbusinessinnovationandentrepreneurship:AsinotherLatinAmericancountries,Mexicosratio
ofBERDtoGDPisrelativelylow(Fig.32d).TheCONACYT,whichmanagesaround40%ofthepublicSTIbudget,
seeks to encourage business R&D and innovation, essentially through competitive grants. Its Innovation
IncentivesProgramme(PEI)hasprovedtobeeffectiveinstimulatingbusinessinnovation,particularlyinSMEs.
48 OECD, 2016
The Programmes overall budget increased from USD223million PPP (MXP1663million) in 2009 to an
estimated USD500millionPPP (MXP4000million) in 2014. In 2013 the government created the National
InstituteoftheEntrepreneur(INADEM)tosupportSMEsandmanagefundstopromotenational,regionaland
sectoralgrowththroughentrepreneurshipandbusinessdevelopment.In2014,theFundforSupportingSMEs
(FondoPyme)andtheEntrepreneurFund(FondoEmprendedor)weremergedtoformtheNationalEntrepreneurs
Fund,tobemanagedbytheINADEM.Inaddition,onSeptember2016,thegovernmentpresentedaproposal
toimplementacorporateincometaxdeductionfor30%ofR&Dinvestments.ItisexpectedthatthisnewR&D
taxcreditwillbeimplementedbymid2017.
Figure 32. Science and Innovation in Mexico

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OECD, 2016 49
Russian Federation
TheRussiangovernmentaimstorevitalisethecountryslongstandingstrengthsinS&Tinanefforttodiversify
the economy and reduce its reliance on natural resources. In 2015, amidst the economic downturn, the
InnovationDevelopmentStrategyoftheRussianFederationto2020,adoptedin2011,wasrevisedtoaddress
theeconomysweaknessesbystrengtheningSTI.Anewstrategicdocument,"LongtermStrategyforScientific
and Technological Development of the Russian Federation", is expected in late 2016 and will orient the
nationalresearchandinnovationagendaforthecomingyears.
Highlights of the Russian STI system

Universities and public research: Russia has a large public science base, dominated by industrial research
institutes and the institutes of the State Academies of Sciences (RAS). In 2013, the latter were extensively
reorganised through the establishment of the Federal Agency for Scientific Organisations, which has the
responsibilitytoadministerthepropertyoftheRAS,toevaluateandoverseetheactivitiesoftheRASinstitutes
andtodistributepublicfundingtothem.Newarrangementsforassessingtheperformanceofpublicscientific
organisationsinthecivilsectorwerealsointroducedin2013toimproveaccountability,whileanewRussian
Research Foundation was set up to distribute research grants on a competitive basis. Since 2013, the
governmenthasadoptedseveralroadmapsaimedatstimulatingtheproductivityoftheRussiansciencesector,
delivering a greater economic impact from research, and redressing the ageing of the Russian research
community.Aseriesofinitiativesshouldimprovethe countrys public researchinfrastructure,includinga
MegaScience Infrastructure Projects programme within the DST (201320) for creating and developing very
largeresearchfacilities.Itprovidescompetitivefundingforinfrastructurestobothpublicandprivateresearch
institutesanduniversities.
Clusters and regional policies: The government launched a new nationwide programme in 2012 to support
pilot innovative territorial clusters to promote valueadded production chains and drive growth in Russias
regions.Atotalof25clusterswereestablished,insevenstrategicsectors:nuclearandradiationtechnology;
aircraftandspacevehiclesmanufacturing;shipbuilding;pharmaceutical,biotechnologyandmedicalindustries;
newmaterials;chemicalsandpetrochemicals;andinformationtechnologyandelectronics.In2013,afederal
subsidy of USD63million PPP (RUB1.3billion) was allocated to support 14pilot clusters, with an equal
matching fund provided by the regional governments. Funding support was further extended to another
11clustersin2014,withuptoUSD154millionPPP(RUB3.1billion)expectedtobeavailablefromthefederal
budgetannuallyover201416.ThenextfocusoftheRussianclusterpolicyistoimplementbroaderregional
clusterprogrammesandtocreateclusterdevelopmentcentrestofacilitatecoordinationandnetworking.
Hot issues
Improvingtheattractivenessofscientificandresearchcareers:OneofthemainchallengesforRussiaisthe
decline and ageing of its research community. Several measures seek to address this challenge by making
research careers more attractive. The Innovation Development Strategy of the Russian Federation to 2020
focusesonthecreationofaneffectiveeconomicandmoralimpetustoattractthemostqualifiedspecialists,
activeentrepreneursandcreativeyouthtotheeducationandsciencesectors,whicharecrucialforinnovation.
ThePresidentialDecreeonMeasuresfortheImplementationofStateSocialPolicytargetsraisingtheaverage
salary of researchers to 200% of the regional average by 2018. To support the development of human
resources forscienceand education andtheir effectivereproduction,grants of thePresident of the Russian
FederationprovidefinancialsupportandincentivestoyoungRussianscientistsintwoagegroups,i.e.below
theageof35andbelowtheageof40,respectively.
50 OECD, 2016
Encouragingbusinessinnovationandentrepreneurship:BERDaccountedfor0.71%ofRussiasGDPin2014.A
distinguishing feature of the Russian system is that the federal budget for stateowned enterprises and
industrialR&DorganisationsaccountsforthemajorshareofbusinessR&Dexpenditures.Onmanymeasures,
theinnovationperformanceofRussianfirmslags(Fig.33e,f,g).Severalgovernmentinitiativesseektostimulate
innovative activities in the business sector. Russia updated its tax codein 2015to provide exemptions from
VATforR&DandwiderS&Tactivities,aswellasforoperationsinvolvingtheprotectionandcommercialisation
ofIPRs.Severalexistingprogrammesremainprominent.ThelongestablishedRussianResearchFoundationfor
Technological Development was transformed into the Industry Development Foundation in 2014 to provide
interestfree loans to support business innovation activities. Its budget was increased significantly and is
expectedtobearoundUSD1.9billionPPP(RUB40billion)in2016.
Figure 33. Science and Innovation in Russia

Top/Bottom 5 OECD values Middle range of OECD values OECD median Russian Federation

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Notes:NormalisedindexofperformancerelativetothemedianvaluesintheOECDarea(Indexmedian=100).ForRussia,the2012valuewas
usedfortheindicator(m)Wirelessbroadbandsubscriptions(perpopulation).ItiscomparedtovaluesofDecember2015forOECDcountries.
OECD, 2016 51
South Africa
SouthAfricahasprogressivelyshiftedawayfromdependenceonprimaryresourceproductionandcommodity
basedindustriestoopenuptointernationaltradeandbuildcapacityinsomeknowledgeintensiveindustries.
The National Development Plan (NDP), A vision for 2030 (201130), provides a general roadmap for South
Africas transition towards a diversified economy, with innovation underpinning almost every aspect and a
strongfocusgiventostrengtheninghumancapital.TheNationalR&DStrategy(2002onwards)hasplannedfor
increasingpublicandprivateinvestmentinthesciencebaseandimprovingthesystemofS&Tgovernance.In
parallel, the TenYear Innovation Plan (200818) identified five areas of competitiveness to be developed:
bioeconomy(formerlypharmaceuticals),space,energysecurity,globalchangeincludingclimatechange,and
socialandhumandynamics.
Highlights of the South African STI system

Globalisation: South Africas integration into international knowledge networks is relatively good (Fig.34q,r).
South Africa participates actively in various international R&D programmes and has signed bilateral and
multilateral agreements to support the international mobility of researchers. Particular efforts have been
made recently to reinforce regional cooperation in the Southern African Development Community (SADC),
whereSouthAfricaplaysaprominentroleindevelopingtheSADCSTIStrategy.SouthAfricaisalsoamajor
partneroftheAfricanUnionsSTIStrategyforAfrica2024(STISA2024),whichplacesSTIatthecentreofthe
regionssocioeconomicdevelopmentandgrowth.TheSquareKilometreArray(SKA)project,constructingthe
world'slargestradiotelescope,isoneofSouthAfricasmajorcrossborderinitiatives(onesquarekilometreof
collectingareawillbelocatedinSouthAfricaandAustralia).Keyscienceprojectswillstartin2020.
Clusters and regional policies: The government has placed strong emphasis on strengthening South Africa's
internationalattractivenessasalocationforbiotechnologycompanies,asectorwhereithasalargeandincreasing
revealedtechnologyadvantage.TheCapeHealthTechnologyParkisanewfacilityforpharmaceuticalcompanies,
researchinstitutes,clinicaltrialfacilitiesandhealthrelatedacademicandgovernmentprogrammes.Itaimsto
reinforceSouthAfricasspecialisationinbiotechnologyandprovidesupporttolocalmanufacturerstointegrate
into global biotech value chains. The Biosciences Park is continuing to assist biotechnology startups in
developing marketable products and incubating innovative approaches. Following the National Science Park
Development Plan (NSPDP 2009), some initiatives are also underway at provincial levels, such as the
InnovationHubinPretoria,supportedbytheGautengProvincialGovernmentandprovidingfundingtoestablish
coreinfrastructureandincubationfacilitiesintheregion.
Hot issues
Improvinghumanresourcesandskills:AmajorbottleneckforSouthAfricassocioeconomicdevelopmentin
general,andfortheadvancementofSTIinparticular,isthelackofabroadskillsfoundation.Theshareofthe
adult population with tertiarylevel education is extremely low (Fig.34t), and the ageing of the white male
dominatedSTIworkforceisfurtherweakeningtheskillsbase.Thegovernmenthastakenaseriesofinitiatives
thatfocusonimprovingaccesstoscienceandmathematicseducationforyouthandonsupportingpostgraduate
students and researchers. University enrolment has increased by 7.7% between 2011 and 2013 to nearly
1millionin2013,whichisinlinewiththeNDPaimtoincreaseenrolmentto1.62millionby2030.Postgraduate
studentssupportedbytheNationalResearchFoundation(NRF)doubledfrom5061in2008/09to11400in
2013/14.Inaddition,inordertoimproveparticipationandinclusivenessinhighereducation,SouthAfricahas
long adopted equity targets in its human resources development programmes and offers targeted financial
support to women and the black community. Examples include the Thuthuka programme and the 2013
GuidelinesforAchievingEquityintheDistributionofBursaries,ScholarshipsandFellowships.
52 OECD, 2016
Encouraging business innovation and entrepreneurship: South Africas business R&D input and innovation
outputarelow(Fig.34d,e,f,g),andBERDdecreasedinbothabsolutetermsandasashareofGDPover200912.
Thelatestnationalbusinesssurvey(2014)shows,however,someimprovementinbusinessR&Dinvestment.
The policy mix for promoting businesssector R&D and innovation has remained stable, and receives
continuousattention.R&Dtaxincentivesprovide150%intaxdeductionsontheR&Dexpenditureincurredby
firms of all sizes that undertake R&D in the country. Other policies include the Support Programme for
Industrial Innovation (SPII), which supports technology development through matching grants for the late
developmentalorearlycommercialisationphases,andtheCompetitiveSupplierDevelopmentProgramme(CSDP),
which gives local enterprises technology support to strengthen their ability to supply competitively to large
publicprocurementprojectsandforeignmultinationals.
Figure 34. Science and Innovation in South Africa

Top/Bottom 5 OECD value s Midd le range o f OECD values OECD median Sou th Africa

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usedfortheindicatorWirelessbroadbandsubscriptions(perpopulation).ItiscomparedtovaluesofDecember2015forOECDcountries.
OECD, 2016 53
Turkey
TurkeyhasmadesignificantstridesinbuildingupitsSTIcapacities,withinternationalSTIcooperationplaying
apivotalrole.GERDgrewby9.7%annuallyover200914,andTurkeyiscommittedtosustainingitsinvestment
in STI. Currently, the National Science, Technology and Innovation Strategy (UBTYS) 201116 and the Tenth
DevelopmentPlan201418providetheguidelinesforTurkeysnationalSTIpolicy.Ongoingimpactassessment
exerciseswillserveasabasisforthenewNationalSTIstrategy201723.TargetsforGERDandBERDwereset
bytheSupremeCouncilforScienceandTechnology(SCST)toreach3%and2%ofGDP,respectively,by2023.
Highlights of the Turkish STI system

Skillsforinnovation:Turkeyhasalmostquadrupledthenumberoffulltimeequivalentresearcherssince2002
from a very low human resource base (Fig.35s,t,u,v,w). The authorities adopted the Turkish Qualifications
Framework in 2015, which seeks to improve the quality of education and training and to develop the
qualificationsrequiredbythelabourmarket.UndertheMakingUseofInformationTechnologiesinitiative,the
MinistryofNationalEducationfundsanumberoftrainingprogrammesforeverylevelofeducationsoasto
develop and extend ICT competences and skills. The Vocational and Technical Education (VET) Strategy
DocumentandActionPlan(201418)wasimplementedtostrengtheninvestmentintechnologicalinfrastructure.
A cooperation agreement on Promoting Entrepreneurship was signed between the relevant ministries and
TBTAKtoimprovethequalityandinnovativeaspectofVET.Morethan15000teachersandadministrators
receivedtrainingonleadershipandentrepreneurshipbetween2012and2015.
STI policy design and evaluation: Turkey has recently placed greater emphasis on encouraging broader
participation in STI policy design. Highlevel prioritisation groups, Delphi surveys of experts in the sector
concerned and focus groups combine strategic and bottomup initiatives as well as both qualitative and
quantitative measures in order to set future sectoral priorities. This approach facilitates the broad, active
participation of nonstate actors. The InterGovernmental Coordination Council for R&D, Innovation and
Entrepreneurship,chairedbythepresidentofTBTAK,wasestablishedtoharmoniseallR&Dsupportschemes
nationwide and to better coordinate the R&D financing institutions so as to ensure the integrity and
coherence of public actors and a targetoriented approach to public support. The Coordination Council for
R&D is also responsible for evaluating all national R&D support schemes. In total, the Council has assessed
62R&D support mechanisms since its foundation in 2011. An additional decree is to be presented to the
upcomingSCSTmeetingtodiversifythesupportmechanismsthatarerelatedtoresearchcommercialisation.
Hot issues
Encouragingbusinessinnovationandentrepreneurship:AccordingtotheWorldBanksEaseofDoingBusiness
Index,entrepreneurshipconditionsinTurkeycouldbesignificantlyimproved(Fig.35j).Thegovernmentconsiders
an ecosystem approach centred on the business sector and entrepreneurs crucial for a wellfunctioning
innovation system. Support for entrepreneurship and SMEs is therefore one of the priorities of the SCST.
Several decrees and policy initiatives have recently been put in place, such as the International Incubation
Centrein2015aswellastheAcquisitionofForeignHighTechCompaniesandtheR&DCentresofInternational
Enterprises, both in2014. The scope of the businesssector R&D Centres Programme was expanded toR&D
design issues and accordingly renamed the R&D and Design Centres Programme in 2016. Furthermore, the
Ministry of Science, Industry and Technology (MoSIT) started the Technological Products Promotion and
MarketingProgrammein2013andtheTechnologicalProductsInvestmentSupportProgrammein2014.Both
targetfirmshavepreviouslyreceivedpublic/internationalR&Dandinnovationsupport.
Universitiesandpublicresearch:Turkeyspublicresearchsystem,asmeasuredbypublicR&Dexpenditureper
GDP,israthersmall(0.5%in2014)(Fig.35a ).Turkeyproducesfewinternationalpublicationsintopscholarly
54 OECD, 2016
journals (Fig.35c ) and has only one worldclass university (Fig.35b). Public research is currently undergoing
majorreformstoimproveitsqualityandrelevance,toincreasecollaborationwiththeprivatesector,andto
leverageprivatefunding.The2014LawontheFundingofResearchInfrastructureconstitutesalegalbasisfora
performancebasedfundingsysteminHEIsandregulatestheutilisationandsustainabilityofresearchinfrastructures.
In2014,theSCSTpassedanewdecreeforasupportprogrammetodevelopexcellentresearchcentres.This
was followed in 2015 by two new initiatives to improve the efficiency and quality of public research in
universities,includingtwodecrees:onetoSupporttheDevelopmentofUniversitiesR&DStrategyinlinewith
regionalcompetences,researchcapacities,andneeds,andasecondonetoIncreasetheQualityandQuantity
ofdoctoralgraduatesinscienceandengineering,whichisstillatalowlevel(Fig.35w).
Figure 35. Science and Innovation in Turkey

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OECD, 2016 55
United Kingdom
TheUnitedKingdomisaveryopenandglobalisedeconomy,anditsSTIsystemenjoysagoodleveloffunding
and participation by foreign firms. Although unemployment rates have fallen to 5% in 2016, labour
productivity growth is sluggish and the results of the Brexit referendum have raised uncertainty regarding
economicgrowth. The Productivity Plan, Fixing the Foundations: Creating a More Prosperous Nation (2015),
sets out a policy agenda to boost the UK's productivity growth, and the Competition Plan, A Better Deal:
BoostingCompetitiontoBringDownBillsforFamiliesandFirms(2015),aimstoincentivisefirmstoinvestin
technology and to innovate. These crossgovernmental strategies have been complementedby anumber of
important reviews focused on specific aspects of the UK STI system, providing the stimulus for significant
structuralchangesinthegovernanceandmanagement,aswellasthefocus,ofpublicinvestmentinSTI.
Highlights of the UK STI system

ImprovinggovernanceoftheSTIsystem:Anewevaluationstrategyforscienceandinnovationwaspublished
in2014thatfocusesonimprovingtheuseandcoverageofevaluations,strengtheninggovernance,increasing
analytical capability and ensuring independent and transparent quality assurance. In addition, a new single
nondepartmental public body operating at arms length from government UK Research and Innovation
(UKRI)willbringtogetherthesevenResearchCouncilsandInnovateUK.TheUKRIisdesignedtoenablea
greater focus on crosscutting issues and improved collaboration between the research base and the
commercialisationofdiscoveriesinthebusinesscommunity.Tocomplementthesemajorstructuralchangesin
the way public investment in STI is to be managed, the Government Office for Science, working with the
ResearchCouncils,haslaunchedaseriesofforesightexercisesandscienceandinnovationaudits.Theseare
designedtohelpbuildjointvisionsanddirections.
Addressingsocietalchallenges:ThereisanemphasisintheProductivityPlanandtheassociatedreviewson
STI to address complex global challenges, such as developing a lowcarbon economy. One initiative in this
direction is a new Global Challenges Research Fund, with USD2.17billionPPP (GBP1.5billion), to be spent
overthe2016/17to2020/21period.Thisfundwilltargetareaswheremultidisciplinaryresearchisrequiredto
address new and emerging social, environmental and health challenges throughout the world. This will be
managed through the Research Councils, national academies and other partners. The Global Challenges
Research Fund will provide additional funding to supportresearch initiatives with a global dimension. It will
complement targeted investment in areas such as energy, where a new grants programme, targeted at
industry and focusing on clean energy, is being launched by the Department of Energy and Climate change.
USD724millionPPP(GBP500million)hasbeensetasideforthisprogrammeovertheperiod20162021.
Hot issues
Innovationinfirms:PromotingR&Dindomesticfirmsandmanufacturingindustriesisaparticularchallenge
fortheUK.TheUKgovernmenthasimplementedavarietyofnoveldirectandindirectsupportmeasuresto
increase innovation in companies and support SMEs. Among these, R&D tax credits are the single largest
governmentsupportforbusinessinvestmentinR&Dandareavailabletoanycompanyinanysectorliableto
pay corporation tax. Businesses are also entitled to an R&D Allowance, formerly known as the scientific
research allowance, which gives 100% relief for capital expenditures on R&D. The Patent Box scheme was
introducedtoprovideanadditionalincentiveforcompaniestoretainandcommercialiseexistingpatents.The
PatentBoxappliesalowerrateofcorporationtaxtoprofitsattributabletopatentsandequivalentformsofIP
onproductsderivedfromUKandEUpatents.Thebenefitisbeingphasedin,andcompanieswillbenefitfrom
thefull10%ratefrom2017/18.
56 OECD, 2016
Technologytransferandcommercialisation:IndustrysciencelinkagesintheUnitedKingdom,asmeasuredby
theprivatefundingofpublicR&D,arelowerthanmightbeexpected(Fig.36o).TheobjectiveoftheKnowledge
Transfer Network (KTN) is to stimulate innovation through knowledge transfer. The government, through
InnovateUK,providedsupportofaroundUSD21millionPPP(GBP15million)in201516fortheKTN,which
has over 43000business members and 14000nonbusiness members. The Dowling review on university
business research collaboration (2015) considered the role of government in fostering the conditions under
which the excellence in UK universities can connect with innovative businesses at home and overseas. This
reviewconcludedthatthatthecomplexityofpublicsupportmechanismsforresearchandinnovationposesa
barrier to business engagement in collaborative activities, particularly for SMEs. It emphasised the need to
promoteandincentivisemobilityandexchangebetweenacademiaandindustry,andforuniversitytechnology
transferofficestofocusmoreonknowledgeexchangethanonshorttermincomegeneration.
Figure 36. Science and Innovation in the United Kingdom

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OECD, 2016 57
United States
TheUnitedStateshaslongbeen,andstillis,attheforefrontofcuttingedgeSTI.However,indicatorssuchas
business innovation surveys and data on the growth of multifactor productivity suggest that the US lead is
narrowing in spite of its worldclass universities and global technology companies. R&D and patenting by
businesseshavealsogrownlessrapidlythaninthepast.The2009StrategyforAmericanInnovation:Driving
towardsSustainableGrowthandQualityJobs,whichwasupdatedinFebruary2011andagaininOctober2015,
providesthestrategicdirectionsforgovernmentpoliciestofurtheraninnovationbasedeconomy.
Highlights of the US STI system

Supporting knowledge transfer: A governmentwide policy mandating increased public access to scientific
publicationsanddigitaldataresultingfromfederallyfundedresearchwasissuedin2013andwillbeimplemented
by the end of 2016. Although there are agency differences, the standard is for all research publications
resultingfromfederallyfundedresearchtobepubliclyaccessiblewithinoneyearofpublication,andfordata
resultingfromfederallyfundedresearchtobepubliclyaccessibleassoonasandasopenlyaspossible.Some
agencies are supporting dedicated infrastructures for open access, including data repositories, publication
repositoriesandpublicprivatecollaborationstocreaterepositories.AUSExecutiveOrderin2013established
open and machinereadable data as the default for government information. This Executive Order is being
implemented by US government agencies through Open Data Initiatives in various fields (including health,
energy,climate,education,finance,publicsafetyandglobaldevelopment).TheWhiteHousehasalsolaunched
Project OpenData to sharebest practicesand code so as to assist US federal agencies in making their data
moreopen.Theaimistomakethesedataavailableinopen,machinereadableformats,andmanyofthese
datasetsareaccessiblethroughthecentralportalofdata.gov.
Fosteringsustainable/greengrowth:ThecommitmentoftheUnitedStatestosustainablegrowthandclean
technologyhasbeenontheriseoverthelastfewyears,andthereisaplantodoubleUSinvestmentinclean
energy innovation over five years. The 2016 Budgetallocates funding for clean energy R&D with the aim to
developthetechnologiesthatwillreduceUSdependenceonoil,buildthedomesticenergyindustriesandjobs,
aswellashelpreducetheemissionsimplicatedinclimatechange.The2016BudgetproposesUSD325million
fortheDepartmentofEnergytoconducttransformationalenergyR&D;USD2.7billionfortheDepartmentof
Energy's Office of Energy Efficiency and Renewable Energy (EERE), with a focus on improving clean vehicle
technologies and on developing advanced materials and processes to cut manufacturing costs by using less
energy; and USD2.7 billion for the US Global Change Research Program (USGCRP) to understand, predict,
mitigateandadapttoglobalchange.
Hot issues
Improving human resources and skills: With a notable share of GDP spent on higher education, the United
Stateshasagoodskillsfoundationandahighshareofatertiaryqualifiedworkforce(Fig.37s,t).However,there
hasbeenarelativedeclineindoctoralgraduatesinscienceandengineering,andAmerican15yearoldsperform
belowpeersinscience(Fig.37w,v).ThefederalgovernmentiscommittedtoimprovingSTEMeducationatall
levelstonurtureahighlyskilled,competitiveUSworkforceforthefuture.InJune2013,PresidentObamareleased
a FiveYear Strategic Plan for Federal STEM Education (201317) to increase efficiency and coordination in
STEM programmes across the federal government. The 2016 Budget includes a major new investment of
USD3.1 billion in federal programmes on STEM education, seeking to advance a governmentwide goal of
increasing by onethird (by one million) the number of wellprepared college graduates with STEM degrees
overthenextdecade.The2016BudgetalsoproposesUSD50milliontocreatetheAdvancedResearchProjects
AgencyforEducation(ARPAED)toproducebreakthroughsinlearningtechnology.
58 OECD, 2016
Innovation in firms: While public funding of business R&D has declined since 2008, primarily because of
declinesindefencebudgets,moreemphasishasrecentlybeenplacedondirectsupportforbusinessR&Dand
innovation. In December 2015, the Research and Experimentation Tax Credit was retroactively extended and
madepermanent.Overthenextseveralyears,agreatershareofUSR&Dinvestmentsmadethroughcompetitive
grants will go to small businesses and small businessled consortia. Technology consulting services/extension
programmeswereintroducedin2013withafocusonmanufacturingandonnewfirmsarisingfromadvancesin
basic research. The US government continues to propose expansions of loan guarantees and risksharing
mechanisms,particularlyinthecleanenergysector.
Figure 37. Science and Innovation in the United States

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OECD, 2016 59
European Union
The European Unions 28 member states account for nearly a quarter of world GDP and contribute to the
world'sR&Donasimilarorderofmagnitude(24%).EUmemberstatesareatdifferentstagesofdevelopment
in their STI capabilities, and these crosscountry differences have been increasing since 2009. The European
Unions Horizon 2020 (H2020) Framework Programme for Research and Innovation (201420) has set the
strategicdirectionforitsresearchandinnovationpolicyandinvestmentforthenextfewyears.Withabudget
of nearly USD98.6billionPPP (EUR78.6billion), H2020 increased the EU R&D budget by nearly 30% in real
termsascomparedtothepreviousprogrammingperiod(200713).Aspecialfocushasbeenputonimproving
thecapacityoftheEuropeanUnionsSTIsystemtoaddresssocietalchallenges.
Highlights of the EU STI system

STI policy governance: The European Union is placing an emphasis on policy evaluation. The European
Commission introduced the European Semester mechanism so as to analyse members policy and reform
efforts,includingintheresearchandinnovation(R&I)policydomain,andassessprogresstowardstheEurope
2020R&Igoals.SinceMarch2015,thePolicySupportFacility(PSF)hasprovidedEUmemberswithpractical
support to identify, implement and evaluate reforms of R&I policies, such as opening up public funding to
competition. The PSF also supports peer reviews by government officials from other countries and provides
access to independent expertise and analysis. The European Commissions DirectorateGeneral for Research
andInnovationisinstrumentalinassessingnationalresearchandinnovationpolicyandreformprogrammes.
Recently, greater use has been also made of foresight as a prioritysetting support tool, and a dedicated
internalunitresponsibleforpolicydevelopmentandcoordinationhasbeencreated.Inaddition,aScientific
Advice Mechanism was introduced in 2015, drawing on the expertise of a HighLevel Group of independent
scientificexpertswhocanprovidetimelyandindependentscientificadviceforpolicymaking.
Skillsforinnovation:TheEuropeanUnionconsidersthathumanresourcesarekeytofuturecompetitiveness
(Fig.38t,v,w).The2016SkillsAgendaforEuropeintroducesanumberofactionstoensurethattherighttraining,
skills and support is available and visible to people throughout the Union. Under H2020, the Marie
SkodowskaCurie actions support researchers at all stages of their careers in all disciplines to combine
academic research with work in companies, as well as with other innovative training that helps enhance
employabilityandcareerdevelopment.Furthermore,ensuringagenderbalanceinscienceandresearchcareers
isatthetopoftheEUresearchagenda.AnumberofH2020fundingprogrammesallowforthepromotionof
gender equality and gender mainstreaming, in particular, through: i)gender balance in advisory groups and
evaluation panels; ii)the selection of grant beneficiaries and research teams; and iii)a gender dimension in
researchcontent.
Hot issues
Encouraging business innovation: The EU business and entrepreneurial environment was weakened during
thefinancialcrisisandSTIpolicyeffortsarecurrentlybeingundertakentosimplifyaccessto(andfillgapsin)
existinginnovationsupportmeasures.OnefeatureofH2020isstrengthenedsupportfortheclosetomarket
stage of innovation. H2020 funding has been made available for all STI activities, from research to market
commercialisation,butwitharenewedfocusoninnovationrelatedactivities,suchaspiloting,demonstrationand
testbeds,togetherwithsupportforpublicprocurementandmarketuptake.Particularemphasisisbeinggivento
directfunding,throughcompetitivegrants,equityfundingandpublicprocurement.TheEuropeanCommissionhas
alsodeployednewfinancialinstrumentsthatintendtoleverageprivateinvestments.Adebtfacilityprovides
loans, guarantees and other forms of debt finance to all firms, while an equity facility provides finance for
earlyandgrowthstageinvestments,withaparticularfocusonearlystageSMEswithhighgrowthpotential.
60 OECD, 2016
ICTandInternetinfrastructures:ICTinvestmentinEuropeisstillrelativelylowandfixedandmobilebroadband
networksareunevenlydeployed(Fig.38k.l.m).Inearly2016,theEuropeanCommissionreleaseditsDigitalAgenda,
which aims to achieve a Digital Single Market based on interoperability, security, fast access for all, digital
literacy,ICTR&DandICTenabledbenefits.ICTareincludedinallH2020activities,eitherthroughspecificcallsor
as part of a broader set of contributing technologies. The EU Cloud Initiative aims to make it easier for
researchers,businessesandpublicservicestomove,shareandreuseresearchdataacrossborders,institutions
andresearchdisciplines.TheEuropeanDataInfrastructurewillsupporttheEuropeanOpenScienceCloud,by
deployingthehighbandwidthnetworks,largescalestoragefacilitiesandsupercomputercapacitynecessary
toeffectivelyaccessandprocesslargedatasetsstoredinthecloud.Bymakingresearchdataopenlyavailable,
theinitiativealsoaimstoboostEurope'scompetitiveness,especiallyforstartups,SMEsandcompaniesthat
canusedataasabasisforR&Dandinnovation.
Figure 38. Science and Innovation in the European Union

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OECD, 2016 61
Readers guide
Countryprofilesaredesignedtoprovideaconciseoverviewofscience,technologyandinnovation(STI)policy
andperformanceinagiveneconomy.Eachprofileisbasedoninformationgatheredfromthelatestcountrys
responsestotheEC(EuropeanCommission)/OECDInternationalSurveyonSTIPolicies(STIP),aswellasvarious
additionalOECDandnonOECDsources.TheSTIPSurveyreviewsonabiennialbasismajorchangesinnational
STIpolicyportfoliosandgovernancearrangements.Responsesareprovidedbygovernmentrepresentatives.
TheOECDCommitteeforScientificandTechnologicalPolicy(CSTP)andtheEuropeanResearchandInnovation
Committee(ERAC)jointlyguaranteetherelevanceofnationalinput.
The profiles include a double figure that sheds light on the strengths and weaknesses of economies' STI
performance.Itusesindicatorsonnationalinnovationsystemsandperformancewithrespectto:universitiesand
publicresearch;businessR&Dandinnovation;innovativeentrepreneurship;informationandcommunication
technology(ICT)andInternetinfrastructure;networks,clustersandtransfers;andskillsforinnovation.Thedot
for each indicator positions the country relative to the OECD median and to the top and bottom five OECD
countries.NonOECDcountriesarealsocomparedtotheOECDcountries,andmayfalloutoftherangeindicated
inthefigure.Allindicatorsarenormalised(byGDPandpopulationsize)totakeaccountofthesizeoftheeconomy
andtherelevantpopulation,andarepresentedasindices(OECDmedian=100)forcomparativepurposes.
In the text, all amounts are given both in USD in purchasing power parities (PPP) of the relevant year (if
available) and in national currencies. Further details on the methodology, data sources and descriptions of
indicatorsusedinthecountryprofilewillbeprovidedontheOECDWorldBankInnovationPolicyPlatform.
Abbreviations used in the country profiles

BERD Businessexpenditureonresearchanddevelopment
EU EuropeanUnion
FDI Foreigndirectinvestment
GBAORD GovernmentbudgetappropriationsandoutlaysforR&D
GDP Grossdomesticproduct
GERD Grossexpenditureonresearchanddevelopment
GOVERD GovernmentexpenditureonR&D
HERD HighereducationexpenditureonR&D
HEIs Highereducationinstitutions
ICT Informationandcommunicationtechnology
IPRs Intellectualpropertyrights
ISO InternationalOrganizationforStandardization
IT Informationtechnology
MNEs Multinationalenterprises
PISA ProgrammeforInternationalStudentAssessment
PRIs Publicresearchinstitutes
R&D Researchanddevelopment
SME Smallandmediumsizedenterprise
STI Science,technologyandinnovation
S&T Scienceandtechnology
STEM Science,technology,engineeringandmathematics
TTO Technologytransferoffice
USD UnitedStatesdollar(convertedusingthepurchasingpowerparitiesoftherelevantyear)
VC Venturecapital
62 OECD, 2016
FURTHER READING
OECD(2016),OECDScience,TechnologyandInnovationOutlook2016,OECDPublishing,Paris,
http://dx.doi.org/10.1787/sti_in_outlook2016en.
OECD(2015),OECDScience,TechnologyandIndustryScoreboard.InnovationforGrowthandSociety,OECD
Publishing,Paris,http://dx.doi.org/10.1787/sti_scoreboard2015en.
OECD(2010),MeasuringInnovation.ANewPerspective,OECDPublishing,Paris,
http://dx.doi.org/10.1787/9789264059474en.
OECD, 2016 63
www.oecd.org/innovation
www.innovationpolicyplatform.org
@OECDInnovation
STI.contact@oecd.org

G20 Innovation Report 2016

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G20

SELECTED INNOVATION INDICATORS

Emerging players in the science landscape

Figure 1. R&D in selected G20 economies, 2013

G20 countries DEU

OECD average = 2.4% FRA

Percentage of GERD financed by industry

WHAT DO WE MEAN BY R&D?

Monitoring STI performance and progress

2004 2014 National target

Funding long-term, higher-risk research

Figure 3. Government R&D budgets, selected G20 economies, 2008-2015

PANEL A: Countries where government-funded R&D has grown since 2008

Index 2008 =100

120 Mexico Germany

Index 2008 =100

HOW DO WE MEASURE GOVERNMENT DIRECT SUPPORT TO R&D?

Innovation for global challenges

Figure 4. Health-related patents, 2000-03 and 2010-13, G20 economies

Medical technologies Pharmaceuticals Health-related patents, 2000-03

% Top 10 % Other G20 countries

DEFINING THE TECHNOLOGIES

Enabling the Next Industrial Revolution

Internet of Things Big data Quantum computing and telecommunication 2005-07

Addressing common challenges through

Figure 7. International collaboration in science and innovation, G20 economies, 2003-12

Raising the quality of science

Figure 8. The citation impact of scientific production and the extent of

ITA DEU FRA High collaboration

Led by domestic leading author

Nurturing talent and skills

Investing in scientists and engineers

Science, mathematics and computing Science, mathematics and computing

Promoting student exchanges

Figure 13. International and foreign students enrolled in tertiary education,

Sciences Engineering, manufacturing and construction

Facilitating researcher mobility

1999-2003 2004-08 2009-13 Net flows, full period (right-hand scale)

-100 -15 000

Promoting collaboration in innovation among firms

International collaborationplays a very important rolebyallowing firmsto gain access to abroaderpool of

As a percentage of product and/or process-innovating As a percentage of product and/or process-innovating

SMEs Large firms SMEs Large firms

Supporting business innovation

HOW TO MEASURE R&D TAX INCENTIVES

Figure 18. Barriers to entrepreneurship, selected G20 economies, 2013

Administrative burdens on start-ups Complexity of regulatory procedures

Empowering society with science and technology

Figure 19. Public perception of impacts of science and technology on society,

Highlights of the Argentine STI system

Figure 20. Science and innovation in Argentina

a. Competences and capacity to innovate

Univer sities and R&D and innovation in fir ms Innovative

Top half 150

b. Interactions and skills for innovation

Top half OECD 150

Highlights of the Australian STI system

Figure 21. Science and innovation in Australia

a. Competences and capacity to innovate

Univer sities and R&D and innovation in fir ms Innovative

Top half 150

b. Interactions and skills for innovation

Top half 150

Highlights of the Brazilian STI system