Science, Technology and Innovation

September 2000

Policy Brief

What is the role of science, technology and innovation in the new economy? Is there other evidence that innovation is stronger? What about innovation in the services sector? What is the role of science in innovation? What role do innovation networks play? Has the environment for innovation changed? How can governments improve the environment for innovation? What is the role of government in funding science? Is government support to private R&D effective? Is government policy adjusting to innovation in the new economy? What next? For further reading Where to contact us

This Policy Brief explores the role of science, technology and innovation in the new economy and discusses the role of government in fostering scientific and technological progress for economic growth and greater social well-being. s

Science, Technology and Innovation in the New Economy

Summary

Scientific advances and technological change are important drivers of recent economic performance. The ability to create, distribute and exploit knowledge has become a major source of competitive advantage, wealth creation and improvements in the quality of life. Some of the main features of this transformation are the growing impact of information and communications technologies (ICT) on the economy and on society; the rapid application of recent scientific advances in new products and processes; a high rate of innovation across OECD countries; a shift to more knowledge-intensive industries and services; and rising skill requirements. These changes imply that science, technology and innovation are now key to improving economic performance and social well-being. However, if governments want to obtain the benefits from this transformation they will have to put the right policies in place. Limits on public spending, increased competition and globalisation, changes in the drivers of the innovation process, and a better understanding of the role played by science and technology...