The effects of R&D tax incentives and their role in the innovation policy mix
Findings from the OECD microBeRD project, 2016-19
This report presents new evidence on the impact of R&D tax incentives and direct funding of business R&D, drawing on distributed cross-country and firm-level analyses undertaken as part of the first phase of the OECD microBeRD project (2016-19). This “distributed” approach facilitates a harmonised analysis of confidential business R&D and tax relief microdata in 20 OECD countries. microBeRD provides new insights into the effectiveness of R&D tax incentives in encouraging business R&D in the OECD area and the heterogeneity of effects both within and across OECD countries, including the underlying impact mechanisms. The report contributes to the debate on the role of R&D tax incentives in the policy mix by providing additional comparative evidence on the effects of alternative business R&D inducement incentives. https://doi.org/10.1787/65234003-en
OECD case study of Norway’s digital science and innovation policy and governance landscape
This report describes Norway’s landscape for Digital Science and Innovation Policy (DSIP) - the overarching framework through which governments make intensive use of digital technologies and data resources to support the formulation, delivery and administration of STI policy. The report describes how Norway’s DSIP landscape is shaped by its broader digital government framework and agenda, introduces the main actors in the DSIP system and discusses their main features in relation to their key objectives and the generic purposes of DSIP approaches. Special attention is paid to the role of STI statistics. It concludes by drawing out key findings and potential implications to help the Norwegian government identify opportunities that promote the system’s further development in line with its strategic objectives. This study also provides an indication of the potential opportunities and challenges that other countries might face when developing, implementing and maintaining digital systems for STI policy and administration. https://doi.org/10.1787/20f80fa1-en
Charting the digital transformation of science
Findings from the 2018 OECD International Survey of Scientific Authors (ISSA2)
This paper presents the results of the 2018 OECD International Survey of Scientific Authors (ISSA2), a global online survey designed and implemented to measure the key features of the digital transformation of science. The paper explores the potential impacts of digitalisation based on a combination of different indicators on research impact and responses from nearly 12 000 authors across the world. The evidence shows that although digital activity is pervasive, the transformation is uneven across fields and sectors, and is influenced by factors such as norms, experience, skills and data availability. Overall, scientists appear to be optimistic about the potential of digitalisation, especially in relation to the efficiency of research and collaboration across national borders. This paper is also the first analysis to leverage a new OECD approach to data collection in priority science policy topics for which evidence might be scarce or insufficiently timely.
The 2018 OECD International Survey of Scientific Authors
This technical paper describes the methodology and main features of the second pilot of the OECD International Survey of Scientific Authors (ISSA2). ISSA2 was carried out in 2018 to provide evidence on the nature and effects of digitalisation in science. This paper describes the key design and implementation feature of the ISSA2 online survey. It also provides an overview of the data collected focusing on the profiles of the survey respondents in relation to the broader population they represent. This aims to guide third-party research use of the data and code made openly available under two different access regimes.
Patterns of innovation, advanced technology use and business practices in Canadian firms
This paper uses a distributed microdata analysis approach to map patterns of technology adoption in Canadian firms, exploring the relationship between technology adoption, business practices and innovation. Prepared by the OECD NESTI secretariat in collaboration with Statistics Canada, the paper leverages a unique enterprise database combining information on innovation, technology adoption and the use of selected business practices. This work suggests a number of possible pathways for selecting and defining priority technology and business practices for data collection and reporting, implementing recommendations in the 2018 Oslo Manual on enablers and objectives of business innovation, and identifying potential synergies between business innovation, management and ICT, and other surveys focused on various aspects of technology adoption.
Indicators of R&D Tax Support
Co-operation between the International Organisation for Standardisation (ISO) and the Organisation for Economic Co-operation and Development (OECD) on the Definition of Innovation for Innovation Management and Statistical Measurement
by Fred Gault and Magnus Hakvåg
This paper presents changes made in the ongoing work on an international standard for innovation management by the ISO and on the definition of innovation for statistical measurement purposes by the OECD. These changes ensure that the two definitions of innovation are related and not in conflict with one another. This is an example of international organisations collaborating to ensure a coherent outcome
Frascati Manual R&D and the System of National Accounts
This working paper looks at the Frascati Manual (FM) framework for Research and Development (R&D) statistics and the System of National Accounts (SNA) framework of comprehensive economic accounts - giving an overview of their shared history and analysing similarities and differences in their approaches to measuring R&D following a fundamental change of the treatment of R&D in the 2008 SNA.
The working paper also highlights the various actions taken in the 2015 revision of the FM which respond to National Accounts data needs and thereby aims to provide a common platform for collaboration and dialogue between FM and SNA practitioners. Finally, the FM and SNA R&D statistics are presented and their conceptual, data, and coverage underpinnings compared, helping to elucidate issues that need to be communicated to users so that they can better understand and interpret these related but different R&D statistics.
R&D Tax Incentives: Evidence on design, incidence and impacts
This policy paper provides an overview of OECD work on measuring the extent and impact of public support for R&D through tax incentives. It discusses the policy rationale for tax incentives in the broader context of public support for business R&D, describing the main features of different modes of expenditure-based tax relief for R&D. It presents evidence on how much financial support is provided through tax incentives, how this has evolved in recent years and the variation in implied R&D tax subsidy rates across OECD countries and partner economies. The document also reviews empirical evidence on the impact of tax incentives, covering in detail different categories of impacts including potentially unintended effects. It further includes evidence on the use and impacts of income-based R&D tax incentives. The paper concludes with a synthesis of the main policy recommendations contained in key OECD policy documents and highlights future measurement and analytical work planned in this area.
Drivers and Implications of Scientific Open Access Publishing
Findings from a Pilot OECD International Survey of Scientific Authors
This paper presents the results of a new and experimental study on the research and publishing activities of scientific authors. It also aimed to test the feasibility of an OECD global survey on science with a focus on major emerging policy issues. This online, email-based pilot survey was based on a stratified random sample of corresponding authors of publications listed in a major global scientific publication index across seven diverse, hand-picked science domains. The results provide evidence of the extent of journal and repository-based open access, data sharing practices, the link between different forms of open access to research and research impact, and the decoupling of quality assurance and access roles played by journals. The results point to the importance of considering economic incentives and social norms in developing policy options for open access. The findings also provide new insights on scientist careers, mobility and gender pay bias.
Measuring the Link between Public Procurement and Innovation
This paper presents the findings of a recent OECD project on the measurement of the link between public procurement and innovation that is intended to contribute to the review and implementation of the OECD measurement frameworks for R&D and innovation. The report highlights what concepts, definitions and measurement approaches can be used, with currently available data or suitably adapted sources, to produce policy-relevant indicators on the use of innovation procurement and carry out empirical analyses on the impact of public procurement on R&D, innovation and broader economic outcomes. Exploiting recent R&D and innovation survey data and administrative procurement records, it provides novel multi-country evidence on the incidence of public procurement of innovation. An exploratory analysis based on procurement, company account, R&D, patent and trademark data helps showcase the use of combined micro-data sources for analytical applications and points out important links between firm-level procurement activity, R&D and economic performance.
OECD Taxonomy of Economic Activities Based on R&D Intensity
This paper provides a new taxonomy of industries according to their level of R&D intensity - the ratio of R&D to value added within an industry. Manufacturing and non-manufacturing activities are clustered into five groups (high, medium-high, medium, medium-low, and low R&D intensity industries), drawing on new and expanded evidence from most OECD countries and some partner economies. This paper also reports on differences in R&D intensity within industries across countries. This document represents an update and reframing of previous OECD taxonomies based on earlier versions of the International Standard Industrial Classification (ISIC), including services, whose coverage has improved in the R&D tables published by OECD (ANBERD). This taxonomy aims to support the presentation of statistics for industry groups when R&D is a relevant discriminant factor. Other existing or in-development taxonomies may be more appropriate for capturing differences in overall knowledge intensity or technology use.
Which factors influence the international mobility of research scientists?
This paper investigates the factors that influence the international mobility of research scientists using a new measure of mobility derived from changes in affiliations reported by publishing scientists in a major global index of scholarly publications over the period 1996-2011. Using a gravity-based empirical framework, our research shows that measures of geographic and socioeconomic and scientific distance correlate negatively with scientist mobility between two countries. Scientific collaboration appears to be a major factor associated with the mobility of scientists. The analysis shows that the mobility of scientists particularly relies on flows of tertiary-level students in the opposite direction, from destination to origin country. This provides strong evidence that brain circulation is a complex and multi-directional phenomenon. For a majority of country pairs (dyads) in our sample, the mobility of scientists is generally better described by commensurate knowledge flows in both directions, rather than one dominating the other. The analysis also shows that mobility can be positively influenced by convergence in economic conditions and resources dedicated to R&D, as well as reduced visa-related restrictions.
Measuring Design and its Role in Innovation
This working paper sums up the main findings of an OECD project aiming to provide an evidence basis for focusing efforts to improve the measurement of technological and non-technological forms of business innovation, with particular focus on the role of design. It reviews a broad range of novel design-related measures, indicating their advantages and limitations in terms of policy relevance and insights. The analysis of design provides a valuable test-case for assessing the robustness of the overall framework for measuring innovation as proposed in the OECD/Eurostat Oslo Manual. It identifies a number of areas for potential development in a future revision, focused on the role of users and the implementation of the definition of innovation and innovation activities. It also identifies a range of design concepts based on an informal consultation with the design expert community.
The paper also illustrates a number of findings arising from the first-time use of a set of experimental and optional questions on design implementing a “ladder-type” model of design which describes levels of sophistication and integration of the design function within the firm. Cognitive testing and analysis of the microdata from a large and representative sample of Danish firms shows a high degree of respondent acceptance of the experimental questions and supports their predictive validity vis-à-vis a number of hypotheses on the use of design and a series of innovation and economic outcomes potentially associated to it.
Careers of Doctorate Holders
Analysis of Labour Market and Mobility Indicators
This paper presents an analysis of the labour market and mobility indicators generated by the second large-scale data collection on Careers of Doctorate Holders, a joint project by the OECD, UNESCO Institute for Statistics and Eurostat.
There has been a steady increase in the number of doctoral degrees being awarded across the OECD and the evidence points to a sustained labour market premium of doctorate holders relative to other highly qualified individuals in 2009, prior to the potential impact of the economic crisis. Women and younger doctoral graduates, however, fare relatively worse in terms of employment rates, but these results are less marked than for lower degree holders. While temporary positions are increasingly common in academics, coinciding with the rise of postdoctoral positions, they are less so in business. Natural scientists and engineers are those who are more likely to be engaged in research, while social scientists find more opportunities in non-research occupations. Doctorate holders in the medical and health sciences are generally better paid. Earnings are also typically higher in the business sector than in other sectors, but there are exceptions. Job mobility patterns differ markedly across countries, with mobility being more frequent among doctorates not working in research. Oftentimes mobility from the business sector to the higher education sector is higher than the other way around. International mobility, as well as migration of doctoral graduates, have kept increasing over the decade.
Knowledge Networks and Markets
This report aims to shed light on the role of markets and networks for knowledge-based assets. Knowledge Networks and Markets (KNMs) comprise the wide array of mechanisms and institutions facilitating the creation, exchange, dissemination and utilisation of knowledge in its multiple forms. This document provides new evidence on the knowledge-sourcing strategies of firms and their role in shaping innovation activities, according to different characteristics, and their impact on performance. It proposes a conceptual framework for understanding how KNMs support knowledge flows and the transfer of intellectual property (IP) rights, supported by a number of novel examples. It considers more specifically some developments in the market for IP rights, looking in the first instance at the evidence on the size of the market and the role of intermediaries. The role of public policies in the IP marketplace is also considered, with particular emphasis on some new forms of policy interventions such as government-sponsored patent funds. This document briefly reviews some key features of the markets and networks for knowledge originating in public research organisations, as well as the role of intermediaries such as technology transfer offices, whose role has been changing rapidly in recent years. Finally, the analysis of knowledge markets is extended to the market for knowledge embodied in highly skilled employees. The mixed impact of mobility on innovation is noted, considering in particular the use of agreements to restrict the movement of human capital and the potential implications of their enforcement. Some proposals for inclusion in a future measurement agenda are outlined.
Mixed Modes of Innovation
An Empiric Approach to Capturing Firms' Innovation Behaviour
Marion Frenz and Ray Lambert
This study uses exploratory data analysis techniques to develop typologies of innovation modes or strategies for groups of firms. Analysing micro-level survey data from 18 countries we identify five innovation modes. The coherence and relevance of the innovation modes is tested by using them as explanatory factors in equations explaining economic performance. In most countries one or more innovation modes are positively associated with labour productivity. However, there is no consistent cross-country pattern as to which modes show significant associations with productivity. Even if common innovation patterns have been identified, there is no ‘single’ mode or form of innovation across countries that underlies the overall impact of innovation and there appear to be major national differences in patterns of competitive and comparative advantage with respect to levels of productivity as well as growth in turnover and employment. Importantly, sectoral innovation orientations are embedded in national systems, as well as exhibiting a degree of convergence at sectoral level.
Modes of Public Funding of Research and Development
Towards Internationally Comparable Indicators
This paper presents the results of the data collection across 18 participating countries, demonstrating that it is possible to produce new policy relevant indicators on public funding of R&D in addition to those envisaged in the OECD Frascati Manual. The initial findings of the data collection highlight interesting differences across countries in terms of their approaches to funding R&D. But before conclusions can be drawn on the effectiveness of the different country funding profiles, further work is needed in order to increase the reliability and comparability of the different indicators.
Biotechnology Statistics in OECD Member Countries
This document reflects recent efforts made by the OECD to obtain an accurate assessment of the current state of biotechnology statistics in OECD member and observer countries. It is an update of the original document, which was released in 2000.
The inventory was prepared by Brigitte van Beuzekom of the OECD’s Directorate for Science, Technology and Industry, and benefited from contributions of the delegates involved in the OECD Ad hoc Meeting on Biotechnology Statistics.
Biotechnology Indicators and Public Policy
This working paper provides input and a framework for a broader discussion of the identification of user needs that should inform the development of biotechnology statistics and indicators. This document identifies and evaluates the main types of indicators that may be required to inform policy actions. Given the embryonic state of biotechnology, the main focus for policy is on S&T policies where four main types of S&T policies – supporting biotechnology research, diffusing biotechnology knowledge and expertise, commercialising biotechnology research and encouraging the adoption (application and use) of biotechnology – are used as a framework for developing relevant statistics. In addition to more generic S&T polices, the paper explores the development of indicators by major application area – agriculture, health, industrial processing and environmental applications.