New Approaches to Measuring the Impacts of STI Policy
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1 New Approaches to Measuring the Impacts of STI Policy Elias Einiö, VATT Making Better Use of Statistics and Indicators of STI Working Seminar (OM & TEM) Finlandia Hall, 17 Sep 2013
2 Outline 1. Innovations rely on human capital Education policy Immigration & emigration 2. Incentives & constraints Fiscal incentives for innovation (taxes, direct support etc.) Intellectual Property Rights (IPR) Financial constraints
3 1. Innovations Rely on Human Capital Case: Engineering Education Reform
4 Engineering Education and R&D in OECD R&D Intensity, Israel Sweden Japan United Switzerland States Denmark Germany Austria Iceland Australia France Belgium Netherlands United Kingdom Norway Czech Ireland Republic Portugal Spain Italy Hungary Turkey Poland Mexico Slovak Republic Finland Korea Causality? Engineering Graduates, 2003 (per 1000 inhabitants) OECD average (sample) Notes: R&D Intesity GERD per GDP (OECD, Main Science and Technology Indicators, OECD.Stats, accessed 11 Sep 2013); Engineering Graduates (per 1000 Inhabitants) Engineering graduates (ISC 52, 54, and 58) from tertiary A and advanced research programmes (OECD, Graduates by Field of Education, OECD.Stats, accessed 11 Sep 2013); Population total population (OECD, Total Population by Sex and Age, OECD.Stats, accessed 11 Sep 2013).
5 Engineering Education and Patents in OECD Patent Applications, 2008 (per 1000 inhabitants) Switzerland Israel Denmark Netherlands Germany Sweden Japan United Austria States Norway Korea France Belgium United Iceland Australia Ireland Kingdom New Zealand Italy Spain Hungary Czech Republic Turkey Portugal Mexico Slovak Poland Republic Engineering Graduates, 2003 (per 1000 inhabitants) Finland Causality? OECD average (sample) Notes: Patent applications Patent applications filed under the Patent Co operation Treaty (PCT) based on inventor s country of residence and priority date (OECD, Patents by Technology, OECD.Stats, accessed 11 Sep 2013); Engineering Graduates (per 1000 Inhabitants) Engineering graduates (ISC 52, 54, and 58) from tertiary A and advanced research programmes (OECD, Graduates by Field of Education, OECD.Stats, accessed 11 Sep 2013); Population total population (OECD, Total Population by Sex and Age, OECD.Stats, accessed 11 Sep 2013).
6 Can innovation be boosted by increasing the supply of engineers?
7 Education and Invention in Finland USPTO patents Engineering student intake at universities s 60s 70s (intake) 80s 90s 00s (patents) Source: Toivanen, O., and L. Väänänen, Education and Invention, CEPR Discussion Paper No (2011).
8 Education and Invention in Finland The introduction of new technical universities increased availability of university engineering education for Younger cohorts Individuals living (relatively) close to the university (A quasi experimental setting for identifying the causal effects of expanding engineering education) Invention increased as a result without the reform, patenting would had been 20% lower in (Toivanen & Väänänen, 2011)* * Toivanen, O., and L. Väänänen, Education and Invention, CEPR Discussion Paper No (2011).
9 Education and Invention in Finland The impact of expanding engineering education is context specific There is a limit for positive benefits from increasing engineering education the economy needs other occupations too. Countries with relatively low proportion of engineering graduates would benefit the most.
10 2. Incentives & Constraints Case: R&D Subsidies
11 Public Funding and R&D in OECD Business R&D (%), 2008 (per GDP) Japan Denmark Finland Korea Germany Sweden United States Iceland Luxembourg AustraliaBelgium France Canada United Slovenia Kingdom Ireland NetherlandsCzech Republic Portugal Norway Spain Estonia Italy Hungary Turkey Mexico Poland Slovak Republic Causality? Government Financed Business R&D (%), 2003 (per GDP) OECD average (sample) Notes: Business R&D BERD per GDP (OECD, Main Science and Technology Indicators, OECD.Stats, accessed 11 Sep 2013); Government financed business R&D BERD financed by government per GDP, (OECD.Stats, Main Science and Technology Indicators, accessed 11 Sep 2013 Israel
12 Public Funding and Patents in OECD Patent Applications, 2008 (per 1000 inhabitants) Denmark Netherlands Japan Finland Germany Sweden Norway Korea United States Luxembourg Australia Belgium France Ireland United Kingdom Canada New Iceland Zealand Slovenia Italy Estonia Spain Hungary Czech Republic Mexico Turkey Greece Portugal Poland Slovak Republic Government Financed Business R&D (%), 2003 (per GDP) Causality? OECD average (sample) Notes: Patent applications Patent applications filed under the Patent Co operation Treaty (PCT) based on inventor s country of residence and priority date (OECD, Patents by Technology, OECD.Stats, accessed 11 Sep 2013); Government financed business R&D (per 1000 Inhabitants) BERD financed by government per GDP, (OECD.Stats, Main Science and Technology Indicators, accessed 11 Sep 2013); Population total population (OECD, Total Population by Sex and Age, OECD.Stats, accessed 11 Sep 2013). Israel
13 Can innovation be boosted by public support to businesses?
14 Public R&D Support in Finland, % higher regional support intensity due to ERDF. More projects supported.
15 Public R&D Support in Finland, The fraction of regional R&D support to R&D investment was +7.4% due to ERDF in Eastern and Northern Finland. In Eastern and Northern Finland, projects that would not have been granted funding in Southern and Western Finland received it. (A quasi experimental setting for identifying the causal effects of expanding the R&D support scheme.) One subsidy euro generated R&D investment worth over one euro, among companies that got support as a result of additional funding in their region. (Einiö 2013)* Positive impact on employment Productivity gains emerged after 3 years. * Einiö, E., R&D Subsidies and Company Performance: Evidence from Geographic Variation in Government Funding Based on the ERDF Population Density Rule", The Review of Economics and Statistics (Just Accepted publication June 20, doi: /rest_a_00410.)
16 Public R&D Support Conclusions Public support can boost innovation when grants are targeted effectively. Large R&D support budgets are not a guarantee of large impacts. A key factor is that subsidies are targeted to R&D activities that are not undertaken in the absence of the support.
17 Thank you! Lisää aiheesta VATT:n Policy Briefissä brief/
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