Annalisa Primi

Economista- Centro de Desenvolvimento da OCDE

annalisa.primi@oecd.org

Brasilia, DF 21 de Março de 2013

Semana do Desenvolvimento Regional

Mesa de debate “Educação, Ciência, Inovação e Desenvolvimento

Regional: Experiencias Latino-Americanas

INNOVATION AND TERRITORIAL DEVELOPMENT:

ANYTHING NEW UNDER THE SUN?

REFLECTIONS “ON AND FOR” LATIN AMERICA

A changing global economic landscape

=> Marco-economic power shift & changes in societal

demands and aspirations

=>Micro-economic changes (organisation of production,

new forms of FDI, increased relevance of “innovation”,

new forms of collaboration&networks)

=>Changes in development and policy models

Changing role and approaches to the “territory”

The world is changing

Marco-economic power shift & changes

in societal demands and aspirations

30

35

40

45

50

55

60

65

70

19

60

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

20

26

20

28

20

30

OECD member countries Non OECD member economies

37%43%

57%63%

Shar

e o

f gl

ob

al G

DP

,P

PP

(%

)

Source: OECD Development Centre

0

5

10

15

20

25

30

% 1990 2000 2010

CHINA IS RESHAPING THE GLOBAL

COMPETITIVE SCENARIO

World top 20 manufacturers, 2010

Country share in total world manufacturing value added

Note: Manufacturing refers to industries belonging to International Standard Industrial Classification (ISIC) divisions 15-37. Value added is the net output of a sector after adding up all outputs and

subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is

determined by the ISIC, revision 3.

Source: United Nations Statistical Division, National Accounts Main Aggregates Database, March 2012.

China

India

Indonesia

Malaysia

Russian Federation

Thailand

Argentina

Brazil

Costa RicaKenya

Morocco

South Africa

France

Germany

Japan

Korea

United Kingdom

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 10 20 30 40 50 60 70 80 90 100

R&

D in

vesm

en

t (%

of G

DP

), 2

00

9

R&D investment financed by the private sector (%), 2009

OECD Average = 2.3 %

Singapore

United States

Research and development investment and private sector

commitment in selected countries, 2009

1 Bn

10 Bn

100 Bn

GERD in USD (PPP), constant 2005 prices

OECD

Asia

Latin America/ Caribbean

Africa

Source: OECD(2013), Perspectives on Global Development 2013 (forthcoming).

Micro-economic changes

Prioritizing innovation: a key challenge (1)

R&D investment financed by the private sector

R&D

as %

of

GDP

Micro-economic changes

Changes in the organisation of

production and new forms of FDI

TOP 20 WORLD CITIES THAT OUTSOURCE “INNOVATIVE”

ACTIVITIES 2010-12 Number of Jobs

Note: Research and development refers to projects that involve the discovery, design, or development of a product

(i.e. technical design centre). Design, development & testing refers to projects that involve design, development or

testing of a product (i.e. A software company opening a development centre would be classified in this category).

To be included in research and development the project must include pure (technical) research.

Top 20 world cities for reception of innovative FDI, 2005-2007

Source: Primi and Skowronnek (forthcoming) on the basis of fDi Markets. A service from the Financial Times Ltd., 2013.

Top 20 world cities for reception of innovative FDI, 2010-12

Micro-economic changes

New forms of collaboration and

networks (global and local linkages)

Ajmone Marsan, G. and A. Primi (2012), “Tell Me Who You Patent With and I'll Tell You Who You Are: Evidence from Inter-Regional Patenting Networks in Three

Emerging Technological Fields”,,OECD Publishing.

TELECOM

A variety of

collaboration

models

coexist

across

sectors and

regions

WHAT HAVE WE LEARNED FROM OUR WORK

WITH PARTNER COUNTRIES ?

Institutions and governance matter

Ex. Territories are increasingly relevant for production development policies and

innovation

National multilevel governance setting

Degree of planning and

financing responsibilities

in industrial and

innovation policy of sub-

national governments

Federal countries

Unitary countries

Elected regional

authorities

Non-elected regional

authorities

Significant

Brazil

India (Examples in OECD

countries: Germany,

Canada, Switzerland,

United States)

Examples in OECD

countries: Italy, Spain) China

Medium

Argentina

Malaysia

The Russian

Federation (Examples in OECD

countries: Mexico)

Colombia (Examples in OECD

countries: France,

Netherlands, Poland,

Korea)

Limited

South Africa

Peru (Examples in OECD

countries: Denmark,

Turkey,

Chile, Japan)

Indonesia

Morocco (Examples in OECD

countries: Ireland,

Finland)

Note: China, India and Indonesia have multiple relevant institutions at different government levels below the national one with responsibilities in industry and scientific and technological development

with non-elected authorities. Significant responsibility in industry and innovation does not imply a better performance, or a judgment of value; it refers to a different organisation and it implies different

policy options. The degree of devolution of competences in innovation-related matters is subject to change. Information reported in this table refers to the first semester of 2010 for OECD countries,

and to the second semester of 2011 for non-OECD economies.

Source: Draws on and updates OECD (2011d) and OECD (2012a).

VARIETY IN REGIONAL INSTITUTIONAL FRAMEWORKS, SELECTED DEVELOPING ECONOMIES

WHAT HAVE WE LEARNED FROM OUR

WORK WITH PARTNER COUNTRIES ?

Policies matter

Ex. Latin American countries are starting to support the creation of start-ups

Source: OECD(2013), Promoting Starturps in Latin America: what are governments doing? (forthcoming).

Seed Start-up Early stage Growth

FINANCING

DEVELOPMENT OF

ENTREPRENEURIAL SKILLS

REGULATORY

FRAMEWORK

Seed capital

Business incubators

Business training

Technology transfer, University spin-offs,Corporate spin-offs

Legislation regarding: enterprise creation, expansion, re-investment/ initial public offering, mergers and acquisitions

Fiscal incentives and special taxation for new firms

Business angels/ networks

Venture capital

Business accelerators

Learning in innovation and regional development

policies

Categories Definition Learning from successful experiences Latin American

experiences

Choice

(top down and

bottom up)

capacity of the policy to

select objectives,

sectors/activities and

beneficiaries

Ensuring high level political support to the

Regional Development Agenda

Gradually increasing spaces for bottom-up

initiatives

Identifying the challenges &defining a

strategy (transformation, frontier or catching

up)

Going beyond technology centred

innovation

“Plano de metas”

Brazil

Coherence

(Horizontal

and vertical)

capacity to deal both with

the cross-ministerial nature

of innovation and with its

diversified territorial impact.

Dealing with functional regions

Fostering cross-regional collaborations

Fostering cluster development

Major bottlenecks.

Consistency

(time and

financial)

capacity to ensure continuity

in policy choices as well as

fine-tuning as reality

changes

Multi-annual plans

Targeting resources at regions

Financing innovation

from NNRR (Chile,

Peru, Colombia-

ongoing efforts)

Control

(policy and

social)

capacity of the institutional

setting to ensure policy

accountability and

monitoring (policy control)

and to allow stakeholders’

participation in the policy

process (social control)

Observatories for regional development

(metrics and policies)

Some national efforts,

need to improve

metrics.

Costa Rica:

interactive mapping

of the NIS

Source: Primi (2013), “Innovation policies in Latin America: a tale of a (slow) learning process”, Forthcoming.

Changing roles and approaches to the “territory”

The issue is rising up: in the national development agenda and in the

innovation and production development agenda (multiple reasons, not least

the rising revenues from NNRR and the willingness to finance production

upgrading and diversification on the basis of NNRR rents).

Contents and Discontents

New instruments for financing innovation/new “integrated” programmes and

higher role of regional authorities (ex. Accumulated learning in techno parks,

entrepreneurship&start-ups, more attention towards “regional development

planning

Importance of the institutional setting

Increased demand for policy accountability (new demands for new indicators)

Challenges in policy coordination

New forms of globalisation and organisation of production and

innovation challenges traditional policy modes.

Higher capacities and more strategic visions are needed in a context

characterised by harsh competition

What do we observe in Latin America and in other

emerging regions?

The OECD Development Centre work on innovation

and territorial development

Shifting up a gear:

Industrial policies in a

changing economic

landscape

Perspectives on Global

Development 2013

Forthcoming!