Publications & Documents

Tax incentives such as intellectual property regimes provide for reduced taxation of the income derived from research, development, and innovation related activities. By doing so, they lower the overall tax burden from investing in certain qualified intangible assets. This paper proposes a methodology to build indicators comparing the effect of income-based tax incentives for R&D and innovation on firms’ incentives to make R&D intangible investments. It provides insights into how such incentives affect firms’ decisions on whether, where and how much to invest in R&D intangibles. These indicators are used to illustrate the extent to which these tax incentives may create potential distortions to firms’ investment, protection and commercialisation decisions. The model is further developed to account for the design changes to such tax incentives introduced by the OECD/G20 Base Erosion and Profit Shifting minimum standard.

Governments are increasingly utilising research and innovation (R&I) policy to foster economic and societal change. Yet, the empirical correlation between these policies and socio-technical transformations remains under-explored. The report investigates this relationship by comparing the Recovery and Resilience Plans (RRPs) of Austria, Finland and Sweden, initiated under the NextGenerationEU framework post Covid-19. The report finds significant disparities in the content, process and transformative value of the RRPs among these countries. The differences in the content of the national RRPs, and the ability and willingness to seize the opportunity presented by the RRPs to drive transformation, are explained by existing national policy contexts and frameworks. Surprisingly, the role of R&I policy in the RRPs is less important than expected, despite its emphasised importance in literature and political rhetoric. The report further identifies implications for a transformative innovation policy as well as areas for further research.

This is the last in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The report focuses on system-level issues and highlights challenges and opportunities that are inherent to the organisation of science systems and that need to be addressed to improve the resilience of these systems and their capacity to address complex societal challenges and crises. The analysis is structured around five interconnected themes: the strategic mobilisation of science capacity; managing conflicting priorities; co-ordination and collaboration across levels of governance; transdisciplinary and reflexive science; and dynamic and system-oriented governance. Key areas for intervention and more specific policy actions are identified under each theme and provide a framework for systemic action to strengthen science in support of socio-technological transitions.

This is the second in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The focus is on science for policy – research agenda setting, scientific advice and public communication and engagement. The report includes recommendations and options for policy action to improve the resilience of national science systems and their capacity to cooperate internationally in response to crises. The context in each country is different, as illustrated by the many case studies included in the report, and so the priority attached to these recommendations and the specific details of how they might be implemented will vary. They are provided as an overall framework for science policymakers and other actors, including research funders and research providers, to consider.

'New space', characterised by new commercial players bringing cutting-edge business techniques and funding methods to space activities, has brought disruptive innovation and democratised access to space. But there also reasons for concern, as this has led to an intensified use of the orbital environment, creating more congestion and debris. Furthermore, the vitality of the 'new space' ecosystem is under threat from economic shocks and market entrenchment. This G20 background paper examines the emergence of the 'new space' ecosystem over the last 15 years, its impact on the space sector and society at large and the role of governments in ensuring sustained and sustainable growth of the sector. The paper provides a definition of 'new space' activities to better target policy responses and suggests policy options to address these challenges.

Located in the mid-Atlantic, the archipelagos of the Azores is an autonomous region of Portugal and an European Union Outermost Region. Once central to global trade routes, the Azores are aspiring to regain a prominent international role by leveraging their unique geographical, natural and historical attributes. To that end, this Production Transformation Policy Review (PTPR) Spotlight identifies priority actions in several areas, including scientific research and collaborations, the ocean economy, agro-food and renewable-energy value chains. It shows the importance for EU Outermost Regions, as well as for Small Island Developing States (SIDS), of building resilient international ties. It benefited from an extensive peer review process involving public and private stakeholders from Brazil, Iceland and the United States.

Very Large Research Infrastructures (VLRIs) are unique, complex undertakings with a strong international dimension that play a critical role in frontier research in most scientific domains. VLRIs require considerable care in their construction and operation, as well as very substantial investments and technological innovations. Recent evolutions in the political, socio-economic and scientific context are challenging their established planning and management models. This policy report identifies and analyses good practices and presents a series of lessons learned regarding the establishment of VLRIs, options for improving their use and operation, as well as more strategic considerations that VLRI managers, funders and decision-makers should take into consideration.

This is the first in a series of three reports that explore how science was mobilised in response to the COVID-19 pandemic. The focus is on policy for science – access to data and information, the role of infrastructures and the interface between academia and industry. The report includes recommendations and options for policy action to improve the resilience of national science systems and their capacity to co-operate internationally in response to crises. The context in each country is different, as illustrated by the many case studies included in the report, and so the priority attached to these recommendations and the specific details of how they might be implemented will vary. They are provided as an overall framework for science policymakers and other actors, including research funders and research providers, to consider.

Fiscal spending policies adopted in the wake of the COVID-19 pandemic have been presented as a unique opportunity to 'build back better' and re-ignite the economy while accelerating the transition to a low-carbon economy. This paper analyses 1 166 funding measures announced by 51 countries and the European Union in 2020-21 to support development and diffusion of low-carbon technologies. These measures – amounting to USD 1.29 trillion – can make an important contribution to filling the climate investment gap, particularly in emerging technologies such as carbon capture, usage and storage and green hydrogen. A modelling analysis suggests that they could have large impacts on greenhouse gas emissions and bring about significant co-benefits in terms of clean sectors’ output growth and reductions in fossil fuel imports.

Innovation policies need to be socially embedded for them to effectively contribute to addressing major societal challenges. Engaging citizens in innovation policymaking can help define long-term policy priorities, enhance the quality and legitimacy of policy decisions, and increase the visibility of innovation in society. However, engaging all groups in society and effectively integrating citizens' inputs in policy processes is challenging. This paper discusses why, when and how to engage citizens in innovation policy making. It also addresses practical considerations for organising these processes, such as reaching out to diverse publics and selecting the optimal mix of methods and tools.