UNESCO SCIENCE REPORT

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Policy-makers should ... focus not just on designing incentives for firms to engage in R&D [but also] facilitate non-researchrelated innovation, particularly in relation to technology transfer. Elvis Korku Avenyo, Chiao-Ling Chien, Hugo Hollanders, Luciana Marins, Martin Schaaper and Bart Verspagen Car assembly plant in Lovech, Bulgaria in 2012. Photo: © Ju1978 / Shutterstock.com 56
2 . Tracking trends in innovation and mobility Elvis Korku Avenyo, Chiao-Ling Chien, Hugo Hollanders, Luciana Marins, Martin Schaaper and Bart Verspagen INTRODUCTION Innovation is spreading its reach across the globe With the rise of the so-called ‘emerging’ economies, research and development (R&D) are spreading their reach across the globe. Multinational firms are playing an important role in this process. By establishing research facilities (R&D units) in foreign countries, they are fostering knowledge transfer and the accrued mobility of research personnel. Importantly, this phenomenon is a two-way street. Multinational firms from Brazil, the Russian Federation, India, China and South Africa (the BRICS countries) are not only a magnet for foreign multinationals; these firms ‘born in the BRICS’ are also purchasing high-tech companies in North America and Europe and thereby acquiring skilled personnel and a portfolio of patents overnight. Nowhere is this more visible than in China and India, which together now contribute more to global expenditure on business R&D than Western Europe (Figure 2.1). In 2014, for instance, the Indian firm Motherson Sumi Systems Ltd purchased Ohio-based Stoneridge Harness Inc.’s wiring harness for US$ 65.7 million (see Chapter 22). Different work cultures Both private and (semi-) public agents innovate but their different work cultures affect the way in which the knowledge generated is diffused. Traditionally, scientists working in public institutions like universities have been motivated by the desire to establish a reputation that is dependent on openness. Their success depends on being first to report a discovery by publishing it in widely accessible journals, on other scientists acknowledging this discovery and building upon it in their own work. This implies that making knowledge available to colleagues and the wider public is a key element of the work of academic scientists. Scientists working in private firms, on the other hand, have a different motivation. Respecting their employer’s interests calls for secrecy and the appropriation of knowledge rather than allowing it to circulate freely. The marketplace being characterized by competition, a firm is obliged to appropriate the knowledge that it develops – in the form of goods, services and processes – to prevent competitors from imitating the discovery at a lesser cost. Firms use a whole range of strategies to protect their knowledge, from patents and other intellectual property rights to secrecy. Although they will eventually make this knowledge available to the general public through the market, this protection of their knowledge limits its diffusion. This trade-off between the right of firms to protect their knowledge and the public good is the basis of every system of intellectual property rights employed in the global economy. Public knowledge is not affected by this trade-off but much of the knowledge generated today involves contributions from both public and private actors. This can affect the rate at which knowledge is diffused. One obvious example is the influence of new knowledge on agricultural productivity. The so-called Green Revolution in the mid-20th century depended almost exclusively on research done by public laboratories and universities. This made the knowledge generated by the Green Revolution readily available for farmers worldwide and provided a great boost to agricultural productivity in many developing countries. However, when the advent of genetic science and modern biotechnology in the late 20th century gave agricultural productivity another boost, the situation was very different because, by this time, private firms had come to play a leading role. They protected their knowledge, leading to a much stronger dependence of farmers and others on a handful of multinational firms that could act as monopolies. This has given rise to heated debates about the economic and ethical sides of private firms developing ‘breakthrough’ technologies but limiting the diffusion of these. Private science is increasingly mobile Another difference between the ‘culture’ of public and private science and technology concerns the degree of mobility. Private science is increasingly mobile, public science is not. Here, we are not referring to individual researchers working in the public and private sectors, who tend to see mobility as a way of furthering their careers. Rather, we are referring to differences at institutional level. Increasingly, firms are relocating their research laboratories abroad. Universities, by and large, remain much more immobile, with only a small minority setting up campuses abroad. Thus, the private sector potentially has a much bigger role to play than universities in spreading the ‘resource balance’ in science and technology around the world. In 2013, the <strong>UNESCO</strong> Institute for Statistics launched its first international survey of innovation by manufacturing firms. For the first time, a database containing innovation-related indicators for 65 countries at different stages of development was made available to the public. In the following pages, we shall be exploring the types of innovation being implemented by private firms and the linkages they need with other socio-economic actors in order to innovate. Chapter 2 57
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UNESCO SCIENCE REPORT Towards 2030
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Published in 2015 by the United Nat
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UNESCO SCIENCE REPORT A closer look
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