Technology, Innovation, ICT and Economic Performance
April, 2001
Risaburo NEZU, Director
Directorate for Science, Technology and Industry
Organisation for Economic Co-operation and Development (OECD)
Average real GDP growth rate, %
4.50
4.00
3.50
3.00
2.50
1981-1991
1992-2000
2.00
1.50
1.00
0.50
Source: OECD
ly
Ita
ce
Fr
an
y
m
an
G
er
an
Ja
p
ia
st
ra
l
K
Au
U
da
an
a
C
U
S
0.00
1
Average real GDP growth rate, %
4.50
4.00
3.50
3.00
2.50
1981-1995
1996-2000
2.00
1.50
1.00
0.50
Source: OECD
Ita
ly
nc
e
Fr
a
an
y
G
er
m
Ja
pa
n
Au
st
ra
lia
UK
Ca
na
da
US
0.00
2
Trend growth in GDP per capita, Average annual % change
Ireland
Korea
Luxembourg
1990-99
Norway (1)
1980-90
Portugal (2)
Spain
Australia
Netherlands
United States
Turkey
Finland
United Kingdom
Belgium
Denmark
Austria
Greece
Canada
Japan
Italy
France
Iceland
Sweden
Mexico
Germany (3)
New Zealand
Switzerland
-2.0
0.0
2.0
4.0
6.0
8.0
Note 1)Total Norway. 2)1990-98. 3)West Germany for 1980-90; Total Germany for 1991-99
Source: OECD
3
Labour utilisation and trend growth in GDP per capita
Average annual % change, 1990-1999
GDP per person employed
Growth in employment
Ireland
Korea
Luxembourg
Norway
Portugal
Spain
Australia
Netherlands
United States
Turkey
Finland
United Kingdom
Belgium
Denmark
Austria
Greece
Canada
Japan
Italy
France
Iceland
Sweden
Mexico
Germany
New Zealand
Switzerland
-2.0
Source: OECD
0.0
2.0
4.0
6.0
8.0
4
Convergence and divergence of GDP per capita in the OECD area
5
US Productivity in Nonfarm Business Sector
Index 1992 = 100
120
1995 to 1999 trend growth
of 2.9 percent per year
110
100
120
110
1973 to 1995 trend growth
of 1.4 percent per year
100
90
90
80
80
Actual
70
73
76
79
83
87
91
95
99
70
Source: USDOC
6
US productivity growth during expansions
5
5
First 2 years
Years 3 & 4
Years 5 & 6
Years 7 & above
4
4
3
3
2
2
1
1
0
1961-69
1982-90
Expansions
1991-99
0
2000
Source: USDOC
7
Business fixed capital formation(current)/GDP(current)
%
20
18
USA.GDP
JPN.GDP
16
DEU.GDP
FRA.GDP
ITA.GDP
14
GBR.GDP
CAN.GDP
AUS.GDP
12
10
8
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Source: OECD
8
ICT capital and GDP growth
Percentage points contribution to annual average GDP growth, business sector
United States
Japan Germany
France
Italy
Canada Australia
Finland
IT and communications 1990-95
equipment
1995-99
0.29
0.24
0.22
0.18
0.18
0.25
0.34
0.16
0.61
0.30
0.21
0.24
0.24
0.36
0.44
0.40
1990-95
0.14
0.06
0.05
0.02
0.03
n.a.
0.12
0.08
1995-99
0.27
0.03
0.08
0.12
0.07
n.a.
0.17
0.18
1990-95
0.43
0.30
0.27
0.21
0.21
n.a.
0.46
0.24
1995-99
0.88
0.33
0.29
0.36
0.32
n.a.
0.61
0.58
Software
Total ICT
Source: OECD
9
Growth effect of ICT
contribution of ICT capital to output
growth - Australia
Non ICT
2.5%
capital
2.0%
ICT capital
1.5%
1.0%
0.5%
0.0%
99
97
95
93
91
89
87
85
83
81
79
contribution (%)
99
97
95
93
91
99
97
95
93
years
10
99
97
95
93
91
89
87
85
83
81
79
contribution (%)
99
97
95
93
91
years
91
89
87
85
83
99
97
95
93
91
89
87
85
83
0.0%
81
1.0%
0.5%
0.0%
1.0%
0.5%
0.0%
81
1.0%
0.5%
79
contribution
(%)
1.5%
79
contribution (%)
1.5%
contribution of ICT capital to output
Non ICT
growth - Japan
capital
2.5%
ICT capital
2.0%
1.5%
contribution of ICT capital to output
growth - Italy
Non ICT
2.5%
capital
ICT capital
2.0%
Source: OECD
89
years
years
years
89
87
87
85
99
97
95
93
91
89
87
85
83
81
0.0%
contribution of ICT capital to output
growth - France
Non ICT
capital
2.5%
ICT capital
2.0%
0.5%
0.0%
83
0.5%
81
1.0%
Non ICT
capital
ICT capital
years
1.5%
1.0%
79
contribution (%)
1.5%
79
contribution (%)
Non ICT
capital
ICT capital
2.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
years
contribution of ICT capital to output
growth - Germany
Non ICT
2.5%
capital
ICT capital
2.0%
contribution of non-residential
capital to output growth in Canada
2.5%
85
99
97
95
93
91
89
87
85
83
81
0.0%
83
0.5%
81
1.0%
79
1.5%
years
contribution of non-residential
capital to output growth in Finland
contribution (%)
Non ICT
capital
ICT capital
2.0%
79
contribution (%)
contribution of ICT capital to
output growth - US
2.5%
Source: OECD
Portugal
Luxembourg
Denmark
Norway
Austria
Finland
Greece
Turkey
Netherlands
Belgium
Germany
Switzerland
Sweden
Japan
Ireland
Spain
Italy
France
Iceland
New Zealand
Australia
United Kingdom
Canada
The price of ICT investment
Price differentials with the United States, average of estimates for 1993 and 1996
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
11
Breakdown of labour productivity growth
3.50
3.00
Left: 1989-95, Right: 1995-99
2.50
Other industries
ICT-using
2.00
Machinery&Equipment-producing
1.50
1.00
0.50
0.00
Denmark
-0.50
Finland
Germany
Italy
Nethelands
Japan
United
States
-1.00
Source: OECD
12
Labour productivity contributions by selected service
industries,% point
(a) Wholesale and retail trade; repairs
United
States
United
Kingdom
Netherlands
Korea
Japan
Italy
Germany
France
Finland
Denmark
1989- 95
1995- 99
Canada
1.2
1.0
0.8
0.6
0.4
0.2
0.0
-0.2
-0.4
1.0
0.8
0.6
0.4
0.2
0.0
NA
-0.2
-0.4
(b) Finance, insurance, real estate and business services
Source: OECD
13
Pick-up in MFP growth and increase in ICT use
Change in PC intensity per 100 inhabitants,
1992-99
50
United States
40
Sweden
Norway
Denmark
Australia
30
Netherlands
Canada
New Zealand
United Kingdom
20
Japan
France
Germany
Belgium
Finland
Ireland
10
Italy
Spain
0
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Change in MFP growth corrected for hours worked
Note: Change in multi-factor productivity growth corrected for hours worked, average 1990s minus
average 1980s.
Source: OECD
14
Pick-up in MFP growth and Internet access costs
Average Internet access costs, 1995-2000, in
USD PPP
90
80
Ireland
Spain
Belgium
70
Germany
60
Japan
France
50
Netherlands
Denmark
United Kingdom
Italy
Norway
New Zealand
40
Sweden
United States
30
Australia
Finland
Canada
20
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Change in MFP growth corrected for hours worked
Note: Change in multi-factor productivity growth corrected for hours worked, average 1990s minus
average 1980s.
Source: OECD
15
Internet access basket for 20 hours at peak times using
discounted PSTN rates, September 2000, Including VAT
PSTN Fixed
PSTN Usage
USD
USD PPP USD
USD PPP
Peak
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Korea
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
OECD
EU
Source: OECD
8.76
18.48
14.65
16.76
4.71
18.24
14.90
10.66
13.31
7.59
7.88
6.66
15.17
10.48
16.98
2.47
11.80
17.20
16.68
16.16
20.47
7.00
11.82
9.09
11.32
15.83
6.00
14.87
13.65
12.40
13.27
10.95
19.06
16.09
20.44
11.77
15.33
13.67
11.11
13.72
10.26
18.75
5.33
17.05
12.63
10.35
3.98
12.69
24.57
18.53
22.77
16.91
13.22
17.38
11.96
10.02
12.77
11.12
13.64
13.65
14.13
14.21
1.92
24.95
26.90
0.00
26.72
0.00
16.99
0.00
0.00
7.59
25.18
19.39
19.01
16.25
19.40
10.67
0.00
0.00
28.39
0.00
23.61
32.15
20.35
25.51
26.02
32.66
12.01
29.55
2.33
15.43
16.10
2.39
25.73
29.56
0.00
66.80
0.00
15.59
0.00
0.00
10.26
59.96
15.51
21.36
19.58
11.83
17.21
0.00
0.00
31.55
0.00
19.52
60.66
29.93
33.57
23.03
26.34
22.24
27.11
2.33
19.73
17.82
ISP
USD
Total
USD PPP USD
17.38
0.00
5.59
12.37
11.49
18.07
0.00
21.64
19.79
15.82
9.55
11.24
13.89
0.00
22.31
3.85
42.66
8.98
0.00
11.13
10.94
0.00
0.00
0.00
2.59
0.00
5.72
0.00
5.45
9.33
9.34
21.73
0.00
6.14
15.09
28.72
15.18
0.00
22.54
20.40
21.38
22.74
8.99
15.61
0.00
13.60
6.21
45.87
12.83
0.00
15.68
9.04
0.00
0.00
0.00
2.29
0.00
10.60
0.00
5.45
11.04
9.96
28.06
43.44
47.13
29.13
42.92
36.31
31.89
32.30
33.10
31.01
42.61
37.28
48.07
26.73
58.69
16.99
54.46
26.18
45.07
27.30
55.02
39.16
32.17
34.60
39.93
48.49
23.73
44.42
21.43
37.16
38.71
USD PPP
35.07
44.78
51.79
35.53
107.29
30.51
29.26
33.65
34.12
41.90
101.45
29.83
54.02
32.21
35.79
27.40
58.56
37.40
50.08
38.45
45.47
73.88
47.31
45.53
35.33
39.10
43.95
40.75
21.43
44.89
41.99
16
National long-distance market shares of new operators
(share of switched minutes)
70.0%
60.0%
Canada
50.0%
France
Germany
40.0%
Italy
Japan
30.0%
UK
USA
20.0%
Finland
10.0%
0.0%
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Canada
5.0% 7.0% 14.0% 18.0%
France
Germany
Italy
Japan
3.0% 6.0% 10.0% 15.9% 22.4% 26.8% 29.1% 31.3%
UK
2.0% 4.0% 6.0% 7.0% 8.0% 9.0% 10.7% 14.0% 16.5%
USA
19.8% 20.2% 23.2% 28.0% 31.5% 35.1% 37.4% 37.8% 39.5% 39.8% 41.5%
Finland
5.5% 54.0%
Source: OECD
1995
1996
31.9%
18.6%
44.5%
60.0%
35.7%
21.0%
47.8%
60.1%
1997
1998 1999
26.1% 27.9%
5.0% 20.0%
30.0% 40.0%
15.0%
40.6%
24.0% 30.7% 33.4%
48.6% 61.3% 62.9%
59.6% 63.0% 62.1%
17
International market shares of new market entrants
(share of minutes of international traffic)
60.0%
50.0%
Canada
40.0%
France
Germany
Italy
30.0%
Japan
UK
USA
Finland
20.0%
10.0%
0.0%
1987
1988
1987
Canada
France
Germany
Italy
Japan
UK
USA
Finland
1989
1989
1991
1992
1990
1993
1991
1994
1995
1996
1997
1998
1999
1993 1994 1995 1996 1997 1998 1999
7.0% 20.0% 26.0% 33.0% 33.0% 36.0% 57.0%
15.0% 27.1%
30.0% 40.0%
32.0%
3.1% 6.7% 18.3% 26.7% 30.4% 33.1% 33.7% 33.8% 35.1% 40.6%
0.2% 1.5% 4.5% 9.0% 14.0% 22.3% 26.3% 30.5% 30.3% 40.0% 51.0% 51.6% 54.6%
7.0% 10.9% 16.7% 21.6% 25.2% 29.7% 37.8% 41.0% 44.2% 50.1% 54.7%
9.0% 27.3% 34.3% 41.4% 45.3% 48.5%
Source: OECD
1988
1990
1992
18
Status of Wireless Liberalisation
Number of OECD countries
30
25
20
Four or More Operators
15
Three Operators
Duopoly
10
Monopoly
5
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
19
89
0
Source: OECD
19
The impact of liberalisation on bandwidth prices
Source: OECD
20
Network expansion and GDP growth
Network expansion (fixed network, cellular mobile, Internet hosts weighted by usage) CAGR%, 1995-1999
30
Hungary
Czech Republic
25
Poland
United States
Iceland
Ireland
Portugal
Korea
Spain
Austria
20
Italy
Finland
Netherlands
Luxembourg
Norway
Mexico
Switzerland
JapanNew Zealand
15
Australia
Belgium Canada
Denmark
United Kingdom
Greece
Germany France
Sweden
Turkey
10
0
1
2
3
4
5
6
7
8
9
Actual GDP per capita growth in the OECD area, 1995-1999
Source: OECD
21
Local market shares by competitive new entrants
(share of access lines)
35.0%
30.0%
25.0%
Can ad a
F ra n c e
20.0%
G e rm a n y
I ta l y
Jap an
15 . 0 %
UK
US A
10 . 0 %
F in lan d
5.0%
0.0%
19 9 1
Canada
France
Germany
Italy
Japan
UK
USA
Finland
Source: OECD
19 9 2
1991
5.0%
19 9 3
19 9 4
19 9 5
19 9 6
1992 1993 1994
7.0% 14.0% 18.0%
0.4%
19 9 7
19 9 8
1995
1996
0.6%
0.4%
1.1%
0.4%
19 9 9
1997
1998
1999
29.0%
0.0%
0.5% 1.0%
0.0%
14.3% 15.4%
3.1% 5.4%
0.4% 0.5%
0.4%
22
OECD tariff rebalancing by distance
150
140
Index (1990 = 100)
130
120
110
100
90
80
70
60
50
1990
1991
1992
1993
Local
1994
27 km
1995
1996
110 km
1997
1998
490 km
Notes: The average of index (1990 = 0) in each country weighted by the number of mainlines.
Calculation is based on PPPs expressed in USD. Luxembourg and New Zealand are not included.
Source: OECD
23
Access costs and uptake of the Internet
Average Date of Initial PSTN Liberalisation*,
Pricing and Hosts
Price
Hosts
US$ 0 - 40 :
1992
60-180: 1993
US$ 40 -60 : 1995
40-60: 1996
US$ 60-80 :
1998
20-40: 1996
US$ 80 - 100: 1999
0-20:
2000
* the average is calculated using the expected
date of liberalisation for monopolies.
Source: OECD
24
Ic
el
an
Fi d
nl
D and
en
m
a
Sw rk
ed
N en
Sw orw
itz ay
er
lan
U
d
ni
I
ted rel
a
K nd
U ingd
ni
ted om
St
ate
Fr s
an
c
A e
us
G tria
er
m
an
y
T
Lu ur
xe key
m
bo
u
Be rg
l
gi
N
u
e
O ther m
EC la
D nds
av
er
ag
G e
re
e
Po ce
rtu
g
Ca al
na
da
N
I
ew ta
Ze ly
al
A and
us
tra
li
Po a
lan
d
Ja
pa
n
Sp
a
M in
ex
ico
K
or
Cz Hu ea
ec
ng
h
Re ary
pu
bl
ic
The cost of leased lines in the OECD, August 2000
Charges for a basket of national leased lines of 2 Megabits per second
OECD average=100
300
250
200
150
100
50
0
Source: OECD
25
Internet hosts per 1000 inhabitants in G7 countries
300.0
United States
250.0
Canada
200.0
United Kingdom
150.0
Japan
Germany
100.0
Italy
50.0
France
Source: OECD
Jan-01
Oct-00
Jul-00
Apr-00
Jan-00
Oct-99
Jul-99
Apr-99
Jan-99
Oct-98
Jul-98
Apr-98
Jan-98
Oct-97
Jul-97
0.0
26
Online Time and Pricing
Hours spent online (average per month)
40.00
AOL (United States)
35.00
30.00
XTRA (New
Zealand)
Freeserve UK
25.00
Telenor (Norway)
20.00
15.00
Telia (Sweden)
T-Online (Germany)
France (All ISPs)
10.00
5.00
2Q
19
4Q 96
19
2Q 96
19
9
4Q 7
19
2Q 97
19
4Q 98
19
2Q 98
19
9
4Q 9
19
2Q 99
20
4Q 00
20
00
0.00
Portugal Telecom
(Portugal)
Swisscom
(Switzerland)
Source: OECD
27
Rapid development of electronic commerce by unmetered access
(Unmetered: Australia, Canada, New Zealand, U.S.)
200
Growth in secure servers per million
inhabitants, July 1999-April 2000
Secure servers per million inhabitants, July
1999
180
160
140
120
100
80
60
40
20
pa
n
Fr
an
c
Be e
lg
EU ium
av
e
Ne rag
e
th
er
lan
Ge ds
rm
an
y
Au
str
De ia
nm
ar
No k
rw
ay
Ire
lan
d
Un
F
ite inla
d
nd
K
OE ing
CD do
m
av
er
ag
Sw e
ed
Lu
en
xe
m
bo
ur
g
Ca
n
ad
Sw
itz a
Ne erla
n
w
Ze d
ala
n
Au d
str
ali
a
Ic
e
Un
l
ite and
d
St
ate
s
Ja
ly
Ita
Ko
re
a
0
Source:OECD and Netcraft (www.netcraft.com)
28
Investment in telecommunications and roads in US
Source: OECD
29
Investment in telecommunication and roads in Japan
25
20
Trillion Yen
15
10
Investment in Roads by National and Local
Governments
Capital Investment by Telecommunications
and Broadcasting Industry in Japan
5
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Fiscal Year
Source: OECD
30
Public telecommunication investment
(USD million)
100000
90000
80000
70000
Australia
Canada
France
Germany
Italy
Japan
UK
US
60000
50000
40000
30000
20000
Source: OECD
1999
1998
1997
Average
1994-1996
Average
1988-1990
0
Average
1991-1993
10000
31
Ko
r ea
Ca
n
Un
ited ada
S ta
te
Au s
st
Ne
the ria
rla
nds
Be
lgi
um
De
nm
ar
Sw k
ede
n
I ce
l an
d
Fin
lan
d
J ap
Sw
a
itze n
rl a
Au nd
stra
lia
Ge
rm
any
Fra
Ne
w Z nce
eal
an
No d
rw
ay
Cz
S
pa
ech
Re in
pub
lic
Ita
ly
Po
Un
r
t
ited
ug
Kin al
gdo
Hu m
nga
r
Me y
xic
o
Gr
eec
e
Ire
la
Lu
xem nd
bou
rg
Slo
Po
l an
vak
d
Re
pub
lic
Tu
rke
y
Cable modem lines and DSL lines per 100 Inhabitants
10.00
9.00
8.00
7.00
6.00
Cable Modem Lines per 100 Inhabitants, January 1st
2001
DSL Lines per 100 Inhabitants, January 1st 2001
5.00
4.00
3.00
2.00
1.00
0.00
Source: OECD
32
Packaged software and information technology services
share of GDP: 1999
2 .6
Sw eden
2 .5
U n ite d S ta te s
2 .3
C anada
2 .2
N e th e r la n d s
2 .1
S w itz e r la n d
N e w Z e a la n d
2 .0
U n ite d K in g d o m
2 .0
D en m ark
2 .0
A u s tr a lia
1 .8
O E C D -2 7
1 .8
N o rw ay
1 .8
1 .7
B e lg iu m
S o f tw a r e
1 .7
F in la n d
1 .6
F ran ce
G erm an y
1 .6
C z e c h R e p u b lic
1 .6
A u s tr ia
1 .4
H u n gary
1 .3
Japan
1 .2
1 .0
Ita ly
0 .8
S p a in
0 .7
Ir e la n d
0 .6
P o r tu g a l
K o rea
0 .6
P o la n d
0 .5
M e x ic o
0 .4
G reece
0 .4
T u rkey
0 .3
0
Source: OECD
IT S e r v ic e s
0 .5
1
1 .5
2
2 .5
3
%
33
Growth in software employment in the business sector
1990-99
%
2.5
Netherlands
Canada
2.0
Denmark
Finland
1.5
United States
France
1.0
Japan
Germany
0.5
Austria
Hungary
0.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Source: OECD
34
US H-1 Visa issued by country of origin
120,000
(1989-99)
Others
Russia
100,000
80,000
Australia
Mexico
Germany
60,000
40,000
France
Philippines
Japan
20,000
0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
China
United
Kingdom
India
Country
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
India
2144
2697
4102
5552
7606
11301
15528
19203
31686
40247
55047
United Kingdom
6663
7174
8794
6726
3993
4230
4771
5601
6928
6343
6665
China
837
610
1145
894
1031
1256
1887
2330
3214
3883
5779
Japan
3678
3791
5167
2767
2152
2217
2070
2411
2929
2878
3339
Philippines
6055
7302
7221
7550
7596
8753
10026
4601
2685
2758
3065
France
2318
2293
2413
1686
870
1003
1216
1463
1894
2110
2633
Germany
1798
1637
1888
1501
1012
1092
1484
1518
2088
2242
2451
Mexico
2951
3727
3227
2488
1307
1147
1451
1909
2785
2320
2419
Australia
872
827
1102
990
863
1050
1042
1123
1438
1666
1651
Russia
2256
3709
3942
1651
1892
1245
1196
1255
1357
1395
1619
Others
19248
24906
20324
19862
13884
15990
18422
18658
23604
25536
32027
Total
48820
58673
59325
51667
42206
49284
59093
60072
80608
91378
116695
Source: Lowell
35
Rates of turnover of IT workers
by age group in the US, 1995-97
Age group
IT workers
Non-IT workers
Expected duration with first employer
by year of graduation
Computer science and engineering graduates
in the US
100%
90%
30 or under
58.3%
52.4%
31 to 40
41.3%
28.8%
20
80%
70%
34.1%
19.2%
51 to 60
29.9%
15.8%
29
50%
Total
18.7%
38.3%
10.5%
23.4%
2 or less
3-5 years
40
40%
30%
Over 60
33
22
60%
41 to 50
23
58
20%
6 or more
years at
first
company
48
27
10%
0%
Before
1971
Source: NRC
Source: McKinsey
1971-90 1991-93
36
5000
20.0
4500
18.0
4000
16.0
3500
14.0
3000
12.0
2500
10.0
2000
8.0
1500
6.0
1000
4.0
500
2.0
0
0.0
Source: OECD
Lucent
Ericsson
Fujitsu
Motorola
NEC
Nortel
Cisco
Siemens
Alcatel
Nokia
Samsung Electronics
3Com
Corning
Cabletron
NTT
France Telecom
Deutsche Telekom
BT
AT&T
Telecom Italia
Korea Telecom
Telia
GTE
Telefonica
SK Telecom
Vodafone
Telenor
Sonera
KPN Telecom
Cable & Wireless
R&D Expenditures (1999)
PTOs and telecommunications equipment manufacturers
US$ million
%
R&D expenditure
R&D as % of total revenue
37
R&D/Sales in large information technology
companies in US
18.0
IBM
AT&T
Lucent Technologies
Hewlett-Packeard
Motorola
Intel
Microsoft
Texas Instruments
Sun Microsystems
Xerox
Digital Equipment
Compaq Computer
Cisco Systems
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
1991
1992
1993
Source: National Research Council
1994
1995
1996
1997
1998
1999
38
Number of patents in US and Japan
450000
Number of patent & application
400000
350000
300000
250000
Patents granted in Japan
Patents granted in the U.S.
Application filed in Japan
Application filed in the U.S.
Request for examination
200000
150000
100000
50000
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
0
Year
Source: OECD
39
Science linkage in selected countries
Measured by average number of scientific papers in US patents
3.5
United States
3.0
Israel
2.5
Australia
2.0
Canada
UK
1.5
France
1.0
Germany
0.5
Japan
0
87
88
89
Source: CHI Research
90
91
92
93
94
95
96
97
98
99
40
41
Cz
ec
Ko
h
re
R
Un ep a
ite u b
l
d
S t ic
ate
Hu s
ng
ar
y
Ja
pa
n
To Pola
Un ta
n
ite l O d
EC
d
Ki
ng D
do
m
Fr
an
M ce
ex
ic
Ice o
l
Ge a nd
rm
an
Eu
y
ro
pe Ita
an
ly
Un
i
Ca on
na
Po da
rtu
g
No a l
r
Au wa y
str
al
ia
Sp
De ain
nm
a
Fi rk
nla
nd
Ne Irel
th an d
er
lan
Sw d s
ed
Be en
lgi
u
Gr m
ee
c
Au e
Sw st
itz ria
er
lan
Tu d
rk
ey
Destination of the government R&D funds by sector of
performance, 1999 or nearest year available
As % of total public R&D funding
100%
80%
60%
40%
20%
0%
Higher education
Source: OECD
Government
Business sector
Private Non Profit
42
Business R&D financed by government
% of GDP, 1999
0.30
0.25
0.20
0.15
0.10
0.05
0.00
Source: OECD
43
1980
Source: OECD
44
Intermediary business for the intellectual
property rights transfer
The number of agency
Private
Public (including TLO)
1000
800
600
note:
Japan: Septemer 2000
US: March 1997
approximate number
Europe: March 1998
approximate number
400
200
0
Japan
US
Europe
Source: MITI, Patent Office
45
The entrepreneurial route
Rate of spin-offs formation in the 1990s
United States
France
Canada
Belgium
Australia
Japan
(?)
0
5
10
15
Yearly average number of spin-offs from public research per billion
$ of publicly-funded R&D
Source: OECD
46
Biotechnology Patent in US and Japan
The share of Genetic engineering patent
filed by US applicant in US
The share of Genetic engineering patent
filed by Japanese applicant in Japan
University or
Research
Institute
12%
Entreprise
16%
Venture
Company
32%
University or
Research
Institute
52%
(Note1) 1971 – 1998 (grant year)
U.S. applicants’ patent granted by USPTO
Entreprise
86%
(Note2) 1971 – August, 1998 (publication year)
Japanese applicants’ patent published by JPO
The number of Company and employee in Biotechnology filed
U.S.
Europe
Large enterprise
800
540
Venture company
1,300
700
Employee
150,000
28,000
Source: Japanese Patent Office
Venture
Company
2%
Japan
260
60
30,000
47
GDP Growth, 1989-99
GDP growth and comparable start-up rates
Source: OECD
48
The level of entrepreneurial activity across OECD countries
Start-up activity: Percentage of adults engaged in the process of creating a business in the past 12 months
New firm activity: Percentage of adults owning (solely or partly) and managing an operating business that is less than 42 months old
Percent
12
10
8
6
4
2
Japan
Ireland
France
Belgium
Sweden
Finland
Spain
Denmark
Germany
United Kingdom
Italy
Canada
Norway
Australia
Korea
United States
0
Source: OECD
49
Venture capital investment in early stages and expansion
“country of management” approach, % of GDP
0.5
0.5
1995
1996
1997
1998
1999
1995-99
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
U
ni
te
d
St
a
C tes
N an
et
he ada
rla
n
Ic d s
el
U OE an
ni
te CD d
d
Ki -19
ng
d
Be om
lg
iu
N m
or
w
Sw ay
ed
Eu
en
F
ro
pe inla
an nd
U
ni
o
Ire n
G land
er
m
an
Fr y
Sw an
itz ce
er
la
nd
Sp
Po ain
rtu
ga
l
Ita
G ly
re
D ece
en
m
a
Au rk
st
Ko
ria
r
e
A
N us a (
ew tr
a 19
Ze lia 95
al (1 -98
an 9 9 )
5
Ja d (1 -9
pa 99 8)
5
n
(1 -98
99 )
5Po
98
l
a
)
C
ze Hu nd
ch ng (19
R ary 98
ep
ub (19 99)
9
lic
8
(1 -99
99 )
899
)
0.0
Source: EVCA, various Yearbooks, NVCA, various Annual Reports, Canadian Venture Capital
Association (CVCA), Asian Venture Capital Journal, The 2000 Guide to Venture Capital in Asia.
50
Regulatory barriers to entrepreneurship, 1998
3.0
Barriers to competition
2.5
Regulatory and administrative opacity
Administrative burdens on startups
2.0
1.5
1.0
0.5
Un
ite
ly
Ita
Ja
pa
n
Be
lg
iu
m
Fr
an
ce
d
Ki
ng
do
m
Ca
na
da
Au
st
ra
lia
Ire
Ne
la
nd
w
Ze
al
Un
an
ite
d
d
St
at
es
De
nm
ar
k
No
Ne rwa
y
th
er
la
nd
s
Po
rtu
ga
l
Au
st
ria
G
re
ec
e
Sp
ai
n
Sw
ed
en
Fi
nl
an
d
G
er
m
an
Sw
y
itz
er
la
nd
0.0
Source: OECD
51
Barriers to entrepreneurship and venture capital activity
1995-98
Venture capital investment in early stages and expansion as a percentage of GDP, 1995-98
0.20
United States
y = -0.0507Ln(x) + 0.092
R2 = 0.2044
Canada
Netherlands
0.15
United Kingdom
Belgium
Norway
0.10
Sweden
Finland
Germany
Australia
Ireland
0.05
France
Switzerland
Spain
Portugal
Italy
New Zealand
Greece
Denmark
Japan
Austria
0.00
0
0.5
1
1.5
2
2.5
3
3.5
Barriers to entrepreneurship, excluding some items, around 1998
Notes: Excluding “license and permit systems”, “sector specific administrative burdens” (for road freight and retail distribution),
and “antitrust exemptions” (for public enterprises).
Source: OECD
52
Link between changes in multi-factor productivity (MFP)
growth and administrative barriers to start-ups
Change in MFP growth
1
corrected for hours worked
1
Finland
Australia
Ireland
Denmark
0.5
Sweden
Canada
Norway
United States
New Zealand
0
United Kingdom
Belgium
Germany
Italy
-0.5
Netherlands
France
Japan
-1
-1.5
Spain
-2
0
1
2
3
4
Administrative burdens on start-ups
5
2
Note 1. Change in multi-factor productivity growth corrected for hours worked, average 1990s minus average 1980s.
Note 2. The scale of indicators is 0-6, from least to most restrictive. Based on the situation in or around 1998.
Source: OECD
53
Private venture capital investment by stage and sector
Investment in early and expansion stages as a percent of GDP, 1995-99
% GDP
0.5
United States
0.4
Japan (1)
European Union
0.3
0.2
0.1
0
1995
1996
Percent
100
1997
1998
1999
Share of high-technology sectors in total venture capital investment , 1995-99
80
60
40
20
Spain
Australia (1)
Austria
United Kingdom
Japan (1)
Sweden
Netherlands
France
Germany
Finland
Denmark
Iceland
Korea (1)
Switzerland
New Zealand (1)
Norway
Ireland
Belgium
Canada
United States
0
Note: 1) Data refer to 1995-98
Source: OECD
54
“New” equity markets in the OECD countries
United States (NASDAQ, 1971)
4,795
Germany (Neuer Markt, 1997)
338
604
Korea (KOSDAQ, 1996)
Number of listed firms
7
Ireland (ITEQ, 2000)
Spain (Nuevo Mercado, 2000)
12
Switzerland (SWX New Market, 1999)
17
Italy (Nuovo Mercato, 1999)
40
France (Nouveau marché, 1996)
158
United Kingdom (AIM, 1995)
524
12
Denmark (KVX, 2000)
Finland (NM List, 1999)
17
Netherlands (EURO.NM Amsterdam, 1997)
15
Belgium (EURO.NM Belgium, 1997)
16
Japan (Mothers, 1999)
29
Austria (Austrian Growth Market, 1999)
2
0
5
10
15
20
25
30
35
40
Market capitalisation, 2000 (% of GDP)
Source: OECD
55
ni
te
Sw
itz
U
d
Lu erla
ni
K
te
n
x
in
d
gd em d
S
b
om
N
ou
et tate
Fi
rg
he
(L
s
n
on
(N
la
rla
n
do
nd YS
d
n
(
s
E
(E
a n H el )
si
ur
d
n
on
N
AS ki)
ex
Sw t A
D
ed ms AQ
)
te
en
(S rda
C
an toc m)
A u a d kh o
a
st
(T lm)
ra
or
lia
(A ont
o)
u
G
Fr
an ree stra
lia
ce
ce
(E
(A n)
ur
t
on hen
s)
ex
Be
Ire t Pa
ris
la
lg
n
iu
m
Ja d ( )
Ir
(E
p
ur an ish)
on
(
ex Tok
t B yo
D
en
Sp rus )
m
se
G
ar ain
er
ls
k
m
(
)
M
(C
an
a
dr
op
y
id
(D
e
)
eu nh
a
ts
g
ch
en
e
)
B
N
ew örs
Po
e
rtu Zea )
la
ga
n
l(
Li d
sb
on
)
N
or
Ita
w
ly
ay
(O
sl
o)
Tu
rk
K
ey
o
(Is rea
ta
nb
ul
Au
)
st Me
r ia
xi
co
Po
la (Vie
nd
n
(W na)
ar
sa
w
)
U
Market capitalisation of shares of domestic companies
(main and parallel markets) (% GDP)
350
300
Source: International Federation of Stock Exchanges (FIBV)
1996
1997
1998
1999
2000
1996-2000
250
200
150
100
50
0
56
Stock options as a % of CEO base pay, 2000
(and their change from 1996)
(+45)
United States
Canada
(+55)
United Kingdom
(+10)
Australia
(+36)
Spain
(+35)
Netherlands
(+35)
France
(+2)
(+30)
Sweden
Italy
(+18)
Belgium
(+25)
Germany
(+20)
(0)
Switzerland
Mexico
(+3)
Korea
New Zealand
Japan
% of base pay
0
Source: Tower Perrin
20
40
60
80
100
120
57
Share of market income in different income groups
(Change in market income share, mid 1980s to mid 1990s)
Poorest 30% Middle 40% Richest 30%
Australia
-2.5
-1.9
4.4
Belgium
---Canada
-0.5
-0.9
1.4
Denmark
-2.0
-1.2
3.2
Finland
-2.1
-2.3
4.3
France
-0.4
-1.5
1.9
Germany
-0.1
-0.4
0.6
Greece*
-1.2
-0.2
1.4
Hungary*
-0.5
-1.4
1.8
Ireland
-0.9
-0.7
1.6
Italy
-2.8
-2.3
5.1
Japan
-1.2
-0.8
2.0
Mexico*
-0.9
-1.7
2.7
Netherlands
-2.0
0.8
1.2
Norway
-2.8
-1.1
3.9
Sweden
-1.4
-1.5
2.9
Turkey*
-1.0
-3.0
4.0
UK
-0.6
-2.4
3.0
USA
0.1
-1.0
1.0
Note: Data for Greece, Hungary, Mexico and Turkey refer to market incomes net of
taxes, and therefore not comparable with the results from the other countries
Source: OECD
58
Income is an important determinant of access
Internet access by household income
% 217%
100
90
80
70
60
50
40
30
20
10
0
Australia
2000 level
Canada
France
1998-2000 growth
Japan
200%
United
Netherlands Kingdom
%
100
90
80
70
60
50
40
30
20
10
0
United
States
Source: OECD
59