Fostering Innovation for Green Growth (OECD Green Growth by OECD

By OECD

Innovation is essential to eco-friendly development. It is helping decouple progress from average capital depletion and contributes to monetary progress and task construction. company is the driving force of innovation, yet governments have to supply transparent and reliable industry indications, e.g. via carbon pricing. This publication explores coverage activities for the deployment of recent applied sciences and recommendations as they emerge: funding in examine and improvement, aid for commercialisation, strengthening markets and fostering know-how diffusion. festival could be necessary to carry out the simplest ideas.

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In deciding where to invest, government should in principle focus on those areas where the social returns of investment are potentially the highest and where it is unlikely that the private sector will invest on its own. This is typically in areas where the risks of investment are too high, the lead times too long, and the appropriability of outcomes low. This implies that governments will need to take the lead in investments in basic research that can help overcome fundamental challenges and specific roadblocks to innovation, or that enhance the knowledge base for followon investments in green innovation by the private sector.

Targeted prizes are posted ex ante and the sponsor’s needs are formalised in performance standards that must be met to claim the prize. The possibility of getting rewards ex post is sometimes institutionalised in blue-sky prizes. These are prizes offered for innovations that are not identified in advance. Prizes were eclipsed by patents during the Industrial Revolution, but they have never vanished as an incentive mechanism. Today, prizes are shifting away from traditional arenas such as the arts to more hard-science related areas such as climate and environment, science and engineering, and aviation and space.

The United States and Japan contributed shares of between 18% and 26% to these four technological areas. The BRIICS countries (Brazil, Russian Federation, India, Indonesia, China, and South Africa) are also heavily involved in waste management, water pollution control and renewable energy. Among the European countries, Denmark is highly specialised in the development of wind energy technologies. There is evidence that green technology development is accelerating in certain areas. 6 presents trends in high-value patents (“claimed priorities”) for a number of climate change mitigation technologies.

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