The OECD has published a revised version of its Innovation Strategy – The Innovation Imperative: Contributing to Productivity, Growth and Well-Being. The report calls on governments to stop policies that unduly favor incumbents, given that young firms are crucial in driving innovation, job creation and growth. With the digital economy and the sharing economy changing the business landscape by allowing new ideas and business models to emerge, it is more urgent than ever to give young firms the means to experiment with new technologies and organizational models. The report also calls on policy makers to think long-term, to provide more grants and fewer tax incentives, and to learn from experience through greater monitoring and evaluation. Four key areas of policy are discussed:
- Skilled workforce that can generate new ideas and technologies, implement them and bring them to the market.
- Sound business envronoment that encourages investment in technology and in knowledge-based capital that enables innovative firms to experiment with new ideas, technologies and business models.
- Strong and efficient system for knowledge creation and diffusion that invests in the systematic pursuit of fundamental knowledge and that diffuses knowledge throughout society.
- Specific innovation policies to tackle a range of barriers to innovation and entrepreneurial activity.