OECD Science, Technology and Industry Scoreboard 2017THE DIGITAL TRANSFORMATIONOECD Science, Technology and Industry Scoreboard 2017THE DIGITAL TRANSFORMATIONThe biennial OECD Science, Technology and Industry (STI) Scoreboard features indicators traditionally used to monitor developments in science, technology, innovation and industry, and complements them with experimental indicators that provide new insights into areas of policy interest. These include: investment in knowledge-based capital, skills in the digital era, the international mobility of researchers, the digital transformation in fi rms and industries, innovation strategies, the internationalisation of research, changing patterns in trade competitiveness and productivity, as well as the use of technology in everyday life.With some 200 indicators, the 2017 edition of the OECD STI Scoreboard shows how the digital transformation affects science, innovation, the economy, and the way people work and live. It aims to help governments design more effective science, innovation and industry policies in the fast-changing digital era.The charts and underlying data in this publication are available for download and over half the indicators contain additional data expanding the time and/or country coverage of the print edition.Thematic briefs and country notes, as well as online tools to visualise indicators are available at the OECD STI Scoreboard webpage (oecd/sti/scoreboard.htm).ISBN 978-92-64-26880-792 2017 08 1 PConsult this publication on line at dx.doi/10.1787/9789264268821-en.This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.Visit oecd-ilibrary for more information.9HSTCQE*cgiiah+This publication is a contribution to the OECD Going Digital project, which aims to provide policymakers with the tools they need to help their economies and societies prosper in an increasingly digital and data-driven world.For more information, visit oecd/going-digital#GoingDigitalMaking.alt the transformation work for g.altrowth and well-being.altOECD Science, Technology and Industry Scoreboard 2017 THEDIGITALTRANSFORMATIONOECD Science, Technology and Industry Scoreboard 2017THE DIGITAL TRANSFORMATIONThis work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.Please cite this publication as:OECD (2017), OECD Science, Technology and Industry Scoreboard 2017: The digital transformation, OECD Publishing, Parisdx.doi/10.1787/9789264268821-enISBN 978-92-64-26880-7 (print) ISBN 978-92-64-26881-4 (PDF) ISBN 978-92-64-26882-1 (epub)Series: OECD Science, Technology and Industry Scoreboard ISSN 1562-983X (print) ISSN 2072-5345 (PDF)The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.Photo credits: Cover © Pykha Studio graphique, based on an image from Liu zishan/Shutterstock.Corrigenda to OECD publications may be found on line at: oecd/publishing/corrigenda.htm.© OECD 2017You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to rightsoecd. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at infocopyright or the Centre français dexploitation du droit de copie (CFC) at contactcfcopies.OECD SCIENCE, TECHNOLOGY AND INDuSTRY SCOREBOARD 2017: THE DIGITAL TRANSFORMATION © OECD 2017 3FOREWORDForewordThe OECD Science, Technology and Industry Scoreboard 2017 draws on the latest internationally comparable data to uncover the strengths of the OECD and other leading economies, and shows how the digital transformation is affecting science, innovation, the economy, and the way people work and live. It aims to help governments design more effective science, innovation and industry policies in the fast-changing digital era.It features indicators traditionally used to monitor developments in science, technology, innovation and industry, and complements them with new and experimental indicators that provide new insights into areas of policy interest.The aim of the STI Scoreboard is not to “rank” countries or develop composite indicators. Instead, its objective is to provide policy makers and analysts with the means to compare economies with others of a similar size or with a similar structure and to monitor progress towards desired national or supranational policy goals. It draws on OECD efforts to build data infrastructure to link actors, outcomes and impacts, and highlights the potential and limits of certain metrics, as well as indicating directions for further work.Indicators are pointers; they do not address causal relationships. Moreover, the validity of a set of indicators depends on its use. The selected indicators have been developed with the following criteria in mind: Indicators should be based on high-quality statistics and robust analytical principles and be measurable internationally, over time and with prospects of improvement. Indicators should be relevant, particularly for decision makers. Experimental indicators that complement more established ones should bring new perspectives and advance the measurement agenda. They should help to stimulate policy debates and uncover new dynamics.The first chapter, Knowledge economies and the digital transformation, provides a broad overview. Trends in science, innovation and growth are presented in the context of todays fast-changing digital technology landscape. Section 1, “Science, innovation and the digital revolution”, presents the latest developments and the top players in artificial intelligence (AI) and other breakthrough ICT technologies, and examines the overall science landscape and the concentration of business R&D. Section 2, “Growth, jobs and the digital transformation”, provides insights into countries participation in global value chains, in particular ICT global production networks, explores the changing nature of jobs, and presents the knowledge-based assets at the heart of innovation and productivity. Section 3, “Innovation today: Taking action”, offers evidence in support of actions to address digital divides and foster innovation and entrepreneurship.Five thematic chapters focus on key areas of policy interest: Knowledge, talent and skills examines the knowledge assets that many firms and governments view as current and future sources of long-term sustainable growth. It provides metrics of knowledge-based capital, such as formal and on-the-job training and organisational assets, both 4FOREWORDOECD SCIENCE, TECHNOLOGY AND INDuSTRY SCOREBOARD 2017: THE DIGITAL TRANSFORMATION © OECD 2017in the market and non-market sector. Skills required for the new working environment shaped by ICTs, as well as returns to ICT skills, are analysed through a new set of indicators. Research excellence and collaboration helps to inform the policy debate with a set of metrics on the variety and nature of mechanisms for knowledge diffusion in the age of digitalisation. It points to the research performance of countries that follow different paths of scientific specialisation, the international mobility of highly skilled individuals, innovation across borders and collaboration among firms in innovation processes. Innovation in firms explores the dynamism of the business sector and framework conditions crucial for innovation. It examines sectoral R&D patterns and intellectual property bundles with a focus on firms joint use of ICT patents, trademarks and industrial designs to protect their innovations. Estimates of R&D tax incentives are combined with direct funding of R&D to provide a more complete picture of government efforts to promote business R&D, while innovation survey data allow an analysis of the participation of innovative firms in public procurement markets. Leadership and competitiveness investigates how countries seek to build their competitive strengths and the extent to which economies are successful in integrating and specialising along global value chains. It assesses indicators on R&D specialisation, technological advantages and relative strengths, and e-business uptake in firms and sectors together with start-up dynamics in ICT sectors vis-à-vis the rest of the economy. Indicators building on the OECD-WTO Trade in Value Added (TiVA) database shed light on economies participation in global trade and value chains, and the implications for jobs and consumers everywhere. Society and the digital transformation uses metrics that focus on digital inclusiveness to help inform the policy debate. A set of key indicators is used to examine individuals access to and use of technologies from an early age, the level of sophistication of users, and their role as e-consumers and e-citizens. Finally, a series of indicators on trust shed some light on firms and individuals security and privacy concerns in an increasingly digitised world.The main audience of the STI Scoreboard is policy analysts with a good understanding of the use of indicators and those engaged in producing indicators for analytical or policy-making purposes. A few paragraphs introduce each indicator and offer some interpretation. Accompanying boxes entitled “Definitions”, “Measurability” and “Did you know?” provide detail on the methodologies used, summarise measurement gaps, challenges and recent initiatives, and draw attention to interesting facts or figures based on the findings of the five thematic chapters.All charts and underlying data can be downloaded via the StatLinks (hyperlink to a webpage). Additional data that expand the coverage of countries and time periods are available at the same links. Several thematic briefs and country notes, as well as online tools to visualise indicators and help users develop analyses based on their own interests, are available from the STI Scoreboard website (oecd/sti/scoreboard.htm).OECD SCIENCE, TECHNOLOGY AND INDuSTRY SCOREBOARD 2017: THE DIGITAL TRANSFORMATION © OECD 2017 5ACkNOWLEDGEMENTSAcknowledgementsThis volume is the result of a collective effort by the Economic Analysis and Statistics Division (EAS) of the OECD Directorate for Science, Technology and Industry (DSTI). This edition was prepared by Ali Alsamawi, Silvia Appelt, Brigitte van Beuzekom, Brunella Boselli, Frédéric Bourassa, Francois Chantret, Agnès Cimper, Alessandra Colecchia, Chiara Criscuolo, Taro Daiko, Hélène Dernis, Isabelle Desnoyers-James, Timothy Destefano, Fernando Galindo-Rueda, Robert Grundke, Joaquim Guilhoto, Peter Horvát, Takashi Inaba, Eugénie Joltreau, Daniel ker, Elif köksal-Oudot, Guillaume kpodar, Alejandro Manríquez-Rangel, Luca Marcolin, Carlo Menon, Pierre Montagnier, Vincenzo Spiezia, Mariagrazia Squicciarini, Fabien Verger, Colin Webb and Norihiko Yamano. Brigitte van Beuzekom and Elif köksal-Oudot co ordinated the production process with the support of Brunella Boselli, Agnès Cimper, Hélène Dernis, Isabelle Desnoyers-James and Fabien Verger, who acted as team leaders. Celia Valeani provided secretarial assistance. Alessandra Colecchia, Dirk Pilat and Andrew Wyckoff provided overall guidance and comments.Others in the OECD made available their respective areas of expertise: Véronique Gindrey, Corinne Heckmann, Massimo Loi, Mariarosa Lunati, Frédéric Parrot, Joris Ranchin, Cláudia Sarrico and Giovanni María Semeraro. Some indicators in this publication use information from the latest COR&DIP dataset created for the World Corporate Top R&D Investors: Industrial Property Strategies in the Digital Economy report jointly published in 2017 by the OECD and the European Commissions Joint Research Centre Institute for Prospective Technological Studies.The OECD acknowledges the Eu funding under its H2020 programme for the work on the incidence and impact of R&D tax incentives and public support for business innovation. The valuable contributions of the microBeRD and R&D tax incentive expert networks are also greatly acknowledged.The contribution of national delegates from the OECD Working Party on Industry Analysis (WPIA) and other members of the DynEmp network has been essential for the progress of the DynEmp project on firm-level dynamics.Last, but not least, the time and help granted by the delegates of the OECD Working Party on National Experts for Science and Technology Indicators (NESTI), the Working Party on Industry Analysis (WPIA), and the Working Party on Measurement and Analysis of the Digital Economy (WPMADE) proved instrumental in creating the content for this edition. We are grateful to all the delegates for their close collaboration.7TABLE OF CONTENTSOECD SCIENCE, TECHNOLOGY AND INDuSTRY SCOREBOARD 2017: THE DIGITAL TRANSFORMATION © OECD 2017Table of contentsReaders guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131. Knowledge economies and the digital transformation. . . . . . . . . . . . . . . . . . . . . . . . . 171. Science, innovation and the digital revolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182. Growth, jobs and the digital transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363. Innovation today: Taking action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942. Knowledge, talent and skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 971. Investment in knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . .