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Shenzhen is a stellar case of growth and economic transformation. Since its establishment as one of China’s first four Special Economic Zones in 1980, it has evolved at breakneck speed. Shenzhen transformed from a fishing village to a major world trade hub and is now home to global innovators in electronics. The Production Transformation Policy Review (PTPR) of Shenzhen, China reviews the city’s changing policy approaches, focusing on the shift from an assembly to a manufacturing centre and more recently to an innovation and start-up hub. Through a comprehensive assessment of Shenzhen’s experience, this review offers insights into the range of policies and strategies employed to stimulate industrial upgrading and learning in China. It provides lessons and actionable policy recommendations for the growth of cities and emerging economies in their catching-up journey. The PTPR of Shenzhen, China has been carried out in the framework of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development and has benefitted from government-business dialogues and international peer learning (University of Seoul, Korea; University of Georgetown, USA and Digital India Foundation, India).

Cities are not only home to around half of the global population but are also at the forefront of the transformation of jobs, skills and labour markets. Furthermore, cities play a leading role in the COVID-19 response, as the pandemic is not only accelerating megatrends such as digitalisation and automation that change the world of work, but is also challenging city economies. In London, COVID-19 has caused an unprecedented labour market shock, with several service sectors having been devastated. The crisis and its impact on employment and firms make skills development and adult learning more important than ever. London is the first major city within the OECD to introduce a comprehensive skills strategy. The report Future-Proofing Adult Learning in London, UK analyses London’s capacity to design effective adult learning programmes, which are critical for a strong and sustainable economic recovery and for preparing for the future of work. The report sheds light on major challenges facing London, especially in light of COVID-19, while also pointing to opportunities for London to design a future-ready adult learning system that responds to the impacts of the pandemic and aligns training to rapidly evolving labour market demands.

This paper studies how industries’ investment in organisational capital (OC) and workforce skills relate to productivity, building on OECD estimates of OC, output data from the OECD Structural Analysis (STAN) database, and both cognitive and task-based skill indicators from the OECD Programme for the International Assessment of Adult Competencies (PIAAC). The paper finds that at the industry level, workers’ numeracy and endowment of skills related to science, technology, engineering and mathematics (STEM) correlate positively with productivity, and that the positive correlation of STEM skills with productivity is generally larger for OC workers. The paper also finds evidence that skills dispersion harms industry performance. A gap between the ICT skills of OC and non-OC workers seems to trigger a 'lost in translation' type of mechanism, whereby communication and information flows become less fluid and impinge upon the economic performance of sectors, correlating negatively with productivity.

Most digital security incidents are caused by malicious actors (e.g. cybercriminals and state-sponsored groups) exploiting vulnerabilities in organisations’ digital ecosystems. Addressing vulnerabilities before attackers take advantage of them is an effective means of reducing the probability of cybersecurity incidents. This paper discusses vulnerabilities in products’ code such as software and firmware, and in how products are implemented in information systems. It shows that the technical community has progressed in developing good practice for treating vulnerabilities, including through co-ordinated vulnerability disclosure (CVD). However, significant economic and social challenges prevent stakeholders from adopting good practice, such as legal frameworks that do not sufficiently protect 'ethical hackers' from legal proceedings. The paper stresses that public policies aimed at removing obstacles and encouraging vulnerability treatment could significantly reduce digital security risk for all. The findings from this paper will inform the development of a new OECD Recommendation in this area.

Going Digital in Latvia analyses recent developments in Latvia’s digital economy, reviews policies related to digitalisation and make recommendations to increase policy coherence in this area, based on the OECD Going Digital Integrated Policy Framework. The review uses strategic foresight to explore three alternative future scenarios, which could result from the digital transformation of the global economy and society. It also examines the availability and quality of communication networks and services in Latvia as well as related policies and regulations. Further, it reviews trends in digital technology usage among individuals, businesses and the government, and examines policies to foster diffusion. Finally, the review analyses opportunities and challenges raised by digitalisation in key areas, from innovation and skills to digital security and data governance, and evaluates policy responses to these changes in Latvia.

Science, technology and innovation (STI) have played a key role in responding to the COVID-19 pandemic and the unprecedented socio-economic crisis it has triggered. This paper explores how the pandemic affected STI in 2020, including how STI was mobilised to provide vaccines, treatments and innovative (often digital) solutions to address 'social distancing'. The paper also reviews the quick and agile STI policy responses implemented across countries to stimulate research and innovation activities to find solutions to the pandemic. Moreover, the paper covers STI policies that targeted universities, research centres, innovative businesses and entrepreneurs most affected by the crisis. It also raises key debates on the effectiveness of such policies. Follow-up work will leverage more and better data to improve this early assessment of the impacts of the crisis and STI policy responses.