OECD World Forum on Key Indicators
November 2004
“A Model to Benchmark
Innovation Capacity –
the Need for Global
Indicators”
Jørgen Rosted
Director, FORA –
Centre for Economic and Business
Research, Denmark
New Growth pattern
> The OECD-study “New Economy – beyond the hype”
illustrated differences in growth patterns among
OECD countries and identified 4 micro-drivers of
growth:
>
>
>
>
Human resources
Knowledge building and knowledge sharing
Information and communications technology
Entrepreneurship
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Growth follow-up project
> Ministers asked OECD to follow-up on the growth
study using benchmarking and peer-reviews to:
> Evaluate the importance of the micro-drivers
> Investigate policy implications
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The new policy framework
Specific
framework
conditions
Benchmarking
Benchmarking
analysis
analysis
Clusters
Business framework
Conditions
Business
framework
conditions
Micro-drivers
ofgrowth
growth
Micro-drivers of
Fundamentals
Macro economy
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Cluster
analysis
A benchmark model to evaluate the importance of
different business environments in a global
knowledge economy
Innovation
Management and organization
Knowledge
building
&
Knowledge
sharing
Entrepreneurship
Information
and
communication
technology
Human resources
Copyright 2004 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk
An 8-step approach to systematic
benchmarking of micro-drivers of growth
> Define good performance and select performance
indicators
> Identify top-performing countries (check
robustness)
> Test the interactions among the drivers and their
links to MFP growth
> Define relevant policy areas and select indicators
(check robustness)
> Test for correlation between performance and
policies
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An 8-step approach to systematic
benchmarking of micro-drivers of growth
> The critical areas of the framework conditions are
identified for each micro-drivers of growth
> Weak points in national framework conditions are
identified
> Improve weak points by using peer review to learn
from policies in best performers
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OECD-report
> The main Committees in the OECD directorate
for Science, Technology and Industry (DSTI)
have been working on “Micro-policies for
Productivity and Growth” since 2001
> Committee on Industry and Business Environment
(CIBE) coordinats the work
> The report will be released in spring 2005
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Conclusions
> Having the fundamentals and the macro-structure
right is not enough
> Countries also need to have the micro-structure
right and only a few OECD countries have that
> The OECD report will contain specific policy
recommendation for each micro-driver
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The Danish benchmark work builds on the
OECD project
> Denmark has actively supported the work and
applied the results in Denmark
> Reports on all four drivers of growth have been
published – each identifying key challenges for
Denmark
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Performance
> 6-10 indicators are used to measure
performance for each of the four micro-drivers
> The micro-drivers interact and are correlated
with multi-factor productivity (MFP)
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Correlation between performance and MFP
growth
Pick-up in MFP growth from the 1980s to
1990s
1,00
Ireland
Australia
Canada
Norway
New Zealand
Denmark
0,50
Finland
Sweden
United States
0,00
-0,50
Belgium
Italy
Germany
Netherlands
France
-1,00
Japan
United Kingdom
Spain
-1,50
-2,00
-1,50
-1,00
-0,50
0,00
0,50
Simple average of all performance indicators
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1,00
1,50
Framework conditions
> 8-16 policy areas are examined for each of the
four micro-drivers
> 30-55 indicators are used to measure the policy
areas for each micro-driver
Copyright 2004 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk
Correlation between policy and performance
100
Simple average of all
performance indicators
90
80
USA
SWE
70
FIN
CHE
CAN
AUS
60
GER
JPN
NOR
AUT
NED
NZL
KOR
50
CZE
BEL
FRA
DEN
IRE
GBR
40
ESP
POL
HUN
TUR
30
20
ITA
POR
Correlation = 0,887
GRC
10
MEX
0
0
10
20
30
40
50
60
70
80
90
100
Simple average of all policy indicators
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Spiderweb – Human ressources
Expediture on education
100
80
Management skills
60
Incentives for education
40
20
0
Input to flexible organisations
Magnitude and relevance of lifelong learning
Magnitude and quality of basic education
Magnitude and relevance of tertiary education
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Danish report
> A report summarizing the work in Denmark – The
Innovation Monitor – is available at
www.foranet.dk
Copyright 2004 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk
The work required an indicator sytem
> Measuring performance and framework conditions is
a difficult task
> To build the indicator system we collected data from
both official statistical offices, international
organisations and survey data from private sources
> This gave us an indicator system specially designed
to analyse micro-drivers
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Data coverage for performance indicators
Micro-driver
Good
coverage
Partly
coverage
Entrepreneurship
Information & communications
technology (ICT)
Innovation - science and
Technology
Human resources
Copyright 2004 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk
Weak or no
coverage
●
●
●
●
Data coverage for entrepreneurship
Policy area
Good
coverage
Administrative burdens
●
Regulations
●
Taxes
●
Partly
coverage
Start-up Capital
●
Secondary stock markets/
alternative exist possibilities
●
Culture
●
Weak or no
coverage
Government support
●
Entrepreneurship
infrastructure
●
Education
●
Copyright 2004 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk
Data coverage for ICT
Policy area
Good
coverage
ICT Infrastructure
●
Prices on communication
●
Access to ICT in education
●
Advanced ICT competences
●
Partly
coverage
Basic e-government
●
ICT competences among consumers
●
Employees’ ICT competences
●
Weak or no
coverage
Advanced e-government
●
Data security
●
Other legislation that indirectly
affects ICT use
●
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Data coverage for science and technology
Policy area
Good
coverage
Public investment in R&D
●
Quality of research
●
Subsidies and tax incentives
●
Access to venture capital
●
Partly
coverage
Cooperation in R&D
●
Commercialization of research
●
Highly educated workers
●
Customers and suppliers
●
Competition policy
●
Weak or no
Coverage
Relevance of research
●
Access to technology
●
Access to competencies
●
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Data coverage for human capital
Policy area
Good
coverage
Expenditure on education
●
Scope and quality of basic
education
●
Partly
coverage
Incentives for education
●
Scope and relevance of tertiary
education
●
Weak or no
coverage
Scope and relevance of lifelong
learning
●
Flexible organisation
●
Management skills
●
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Indicator systems
> Hundreds of global indicator systems are build for
different purposes
> There will be synergies and therefore productivity gains
in closer collaboration
> How could productivity gains be harvest?
> The role of OECD?
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