"Science, Technology and Innovation in the New Economy"

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 in economic performance and
societal change, have led governments to sharpen their policy tools.
Increasingly, government must become a facilitator, enabling business
and consumers to adapt to the demands and opportunities of the new
economy. But there are other areas, such as investment in fundamental research and ensuring stakeholders’ involvement in policy design
and implementation, where an active role of government is indispensable.
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.