OECD records R&D spending increase and outlines priorities for the future
The latest 'Science, technology and industry outlook' from the Organisation for Economic Cooperation and Development (OECD) highlights increasing research investment by its member countries and identifies three challenges for the future. The OECD puts increased research spending down to its member countries 'taking more seriously the need to invest in research and development as a means to boost economic performance and remain competitive in the face of rapid growth in capabilities in countries such as China and Israel.' Indeed, China doubled its research and development (R&D) spending between 1995 and 2002, from 0.6 per cent of GDP to 1.2 per cent. Over the same period, Israel increased its spending from 2.74 per cent to 4.72 per cent of GDP. While research investment did increase within the OECD between 1995 and 2002, the magnitude of that growth was more moderate - from 2.09 per cent to 2.26 per cent of GDP. This is still marginally lower than its peak of 2.28 per cent in 2001. A number of countries have set long term goals for increasing their R&D spending, most notably within the European Union. Heads of State and Government agreed in 2002 to increase research investment to three per cent of GDP by 2010. Some countries, including Germany, have stood by this target, while others have set different goals in line with what they believe to be attainable. Austria is aiming for 2.5 per cent of GDP by 2006, while the UK hopes to reach the same level by 2014. Outside of Europe but within the OECD, Canada has set itself the goal of being among the top five investors in R&D and South Korea has pledged to double its investment between 2003 and 2007. The 'Science, technology and industry outlook' claims that in order to capitalise on increased investment, OECD countries need to address a number of challenges: increasing innovation in the service sector; making the most of multinational enterprises; and reforming public research systems. To strengthen the service sector, where innovation is practised less than in the manufacturing sector, the OECD urges governments to strengthen links between service firms and public research institutions. It also recommends directing research to better suit the needs of particular service industries, and helping service firms to use technology more effectively. Many countries could learn from initiatives launched by Denmark, Finland, Ireland and Norway, states the OECD report. The OECD notes the benefits to be reaped from foreign affiliates and calls on governments to take further action in order to profit from globalisation, for example by enhancing their countries' attractiveness to foreign investors and strengthening links with R&D institutions in other countries. The reform of public research systems has already begun in some countries, but the OECD maintains that more can be done. Denmark, Japan and Slovakia have given universities more autonomy and made it easier for them to work closely with industry. Norway and Switzerland have facilitated the ownership and marketing of intellectual property by public research institutions. Finland and Iceland are preparing similar legislation.