Our understanding of what is happening in OECD economies is constrained by the extent and quality of the available indicators. While advances are being made in economic theory and methodologies, these will not be fruitful unless they are applied to the right data. Traditional national accounts frameworks were designed in an earlier era when the economy was simpler and the role of knowledge and technical change was not fully acknowledged. As a result, this measurement framework is not offering reasonable explanations for trends in economic growth, productivity and employment. The contributions of R&D to productivity growth, the economic effects of the computer and information networks, the role of tacit learning and formal and informal economic interactions are among the phenomena which at present elude us.
To fill these gaps, work must first continue on improvements, extensions and new combinations of current knowledge indicators relating to R&D expenditures and research personnel, particularly to develop a clearer picture of the research and innovation role of the services sector. But indicators for the knowledge-based economy must go beyond measuring knowledge inputs to measuring stocks and flows, rates of return and distribution networks. The central role of learning also underlines the need for new indicators of human capital, training and labour requirements. Fruitful areas for further indicator development in the near term include:
◊ Knowledge stocks and flows – Statistical techniques could be developed to estimate
knowledge stocks based on current R&D input and flow measures. Development of knowledge flow indicators would yield better measures of the R&D and knowledge intensity of industries and economies. This includes more extensive and comparable indicators of the acquisition and use of different types of technology by industry, particularly information technologies. More creative analysis of existing patent data at the national and international levels could help trace flows of disembodied knowledge.
◊ Knowledge rates of return – In order to assess knowledge outputs and evaluate the
performance of knowledge-based economies, priority should be placed on developing improved indicators of the private and social rates of return to R&D and other knowledge inputs. This includes measuring returns to individuals, firms and societies in terms of employment, output, productivity and competitiveness, and could be based on both macro-level econometric analyses and firm-level surveys. One of the great challenges is to develop indicators and methodologies for gauging the impact of technology on productivity and economic growth.
◊ Knowledge networks – Given the importance of tacit as well as codified knowledge, diffusion
as well as creation of knowledge, and know-how and know-who in the knowledge-based economy, indicators of the knowledge distribution power and other characteristics of innovation systems are key. Firm-level innovation surveys, as well as other measurement approaches, need to be developed to better characterise innovation processes and interactions among firms and a range of institutional actors in the economy.
◊ Knowledge and learning – Human capital indicators, particularly those relating to education
and employment, are central measures for the knowledge-based economy. Measuring the private and social rates of return to investments in education and training will help point to means of enhancing the learning capacity of individuals and firms. Micro-level firm indicators on human resource requirements, employment and occupational mobility will help better match supply and demand for skills in the labour market.
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