Globalization, the new technologies and the fall in transport and communication
costs have created opportunities for increased prosperity, but have also given
rise to new challenges and new competitive pressures in the world economy.
Fostering innovation and knowledge-driven development is the cornerstone of
any strategy to enhance national competitiveness, increase productivity and
provide for sustained economic growth. The creation of the Economic Cooperation
and Integration Division (ECID) was a direct result of the UNECE reform adopted
in December 2005. This new subprogramme aims to strengthen the competitiveness
of member States’ economies by promoting knowledge-based economy and
innovation, confirming member States’ belief that international cooperation
has an important role in fostering national competitiveness and shared prosperity.
As the challenges of globalization are especially pronounced for those economies
currently making the transition to a market economy, the subprogramme’s
main focus is on these economies, and their particular needs. For countries
facing developmental problems as well, increased competitiveness can be instrumental
to achieving the Millennium Development Goals. The common understanding is,
however, that the issues addressed by the subprogramme are relevant for all
member States.
The subprogramme has a clear policy and practical orientation. Main policy
outputs (e.g. synopses of good practices, policy recommendations and guidelines)
will be broadly disseminated in member States and will serve as the basis
for capacity-building activities that respond to their needs and demands.
Innovation and competitiveness are driven by a multitude
of factors, which is reflected in the different thematic areas of the programme
of work adopted by the Committee on Economic Cooperation and Integration (CECI).
Intergovernmental dialogue on innovation and competitiveness policies identifies
good practices in promoting innovative development and knowledge-based competitiveness.
The diversity of policy experiences and the wealth of institutional arrangements
among member States provides for a fertile ground for knowledge-sharing, leading
to the formulation of better policies. Identifying good practices supports
an ongoing dialogue and participatory process in which experts from Governments,
the private sector and academia all take part.
A favourable environment for entrepreneurship nurtures
the forces of innovation and change. New enterprises play a critical role
in generating commercially successful new processes and products. The work
in this area seeks to identify the barriers hindering entrepreneurship and
to help create an environment in which it can flourish. As in other areas,
developing wide support networks that bring together Government, the private
sector, and academia ensures better policymaking and facilitates its dissemination.
The access of innovative entrepreneurs to finance, through
the whole cycle from a product’s invention to its commercialization,
is critical for knowledge-driven development. CECI work in this area seeks
to identify good practices and the effects of government policies and regulation
on financial intermediation. A shared assessment, with inputs from member
States representatives and the private sector, can lead to policy recommendations
based on best practice. The creation of networks of experts and stakeholders
is particularly important in this area, especially for businesses challenged
by small size, remoteness or financing constraints.
Intellectual property rights (IPR) have a paramount significance
in the innovation process. Adequate protection and enforcement are crucial,
as they create the necessary incentives, allow for the recovery of initial
investment costs, and compensate innovators for the risks they take. IPR protection
and enforcement also affect health and safety standards and fair competition.
They are particularly significant for transition economies, where the transformation
of R&D outputs into intangible assets often falls short of its potential.
Public-private partnerships (PPPs) can play essential
role in the development of competitive advantages and the promotion of innovation.
PPPs can be designed to share risks and undertake projects in various fields.
The work of the CECI in this area draws on the practical experience of PPPs
in market and transition economies, including those with related regulatory
policies, with the objective to identify good practices that can eventually
lead to policy recommendations.
At its first annual meeting, CECI decided also to create two Teams of Specialists
(one on innovation and competitiveness policies and the other on intellectual
property) to support programme implementation in these areas. CECI and ECID
are also establishing networks of experts in all thematic areas, to facilitate
dialogue between various interested parties in different member States and
beyond.
This brief overview of the CECI programme of work shows that a variety of
policy interventions in different fields support competitiveness and promote
innovation. A broad integrated consideration of the issues allows for a better
understanding of their interrelations between them and the identification
of bottlenecks where policy intervention could yield larger gains.
UNECE is obviously not the only organization carrying out work on these
important topics. Collaboration and coordination with other international
organizations is necessary to avoid overlap and identify common themes of
interest where joint work may be possible. While building on the results of
other organizations, CECI will add new value by providing a multilateral forum
for intergovernmental discussions and reaching out to countries not covered
in the work of others. The broad membership of UNECE allows it to bring the
experience accumulated by smaller organizations to a wider constituency.
The way ahead
While we are still at the beginning of the road, a number of important meetings
will take place in 2007, including the first session of the Team of Specialists
on Innovation and Competitiveness Policies, the meeting on IPR Protection
and Transforming R&D Outputs into Intangible Assets, the annual meeting
of the Team of Specialists on Intellectual Property and the annual session
of CECI. Various events are also planned in the areas of entrepreneurship,
financing for innovative development and PPPs. These meetings, which will
bring together members of our broader constituency, will have a capacity-building
dimension, as they will provide an opportunity for participants from low-income
transition countries to engage with the support networks that have access
to valuable materials and resources.
We envision that the adoption of CECI policy recommendations and guidelines
and ongoing networking activities will mobilize additional resources and expand
the range of our capacity-building activities. The networks created will support
the broad dissemination of our work, ensuring its maximum effectiveness, as
a further driver for enhanced cooperation at the regional and subregional
levels. The Web-based virtual platform for exchange of information being established
by ECID will provide a structured channel for dialogue between experts as
well as a repository for useful material supporting shared assessments and
the exchange of experiences.
Mr. Matti Pietarinen
Chairman, Committee on Economic
Cooperation and Integration
The range of issues to be considered by the Committee defines an exciting
programme of work that is of great relevance to our member States. Innovation
is the outcome of complex interaction between individuals, organizations,
institutions and the existing system of economic incentives. While competition
is a clear driver of innovation, collaborative efforts between private agents
and between the public and private sectors are crucial. Innovation is the
foundation of sustainable economic development, and addresses challenges to
future improvements in welfare.
In many transition countries, the main focus of CECI activity, education
levels and a tradition of scientific research create a potential for innovation
that is not fully realized due to certain factors. Tapping into this potential
would contribute to the increased prosperity of our region.
The creation of wide networks of experts in the various thematic areas is
a promising direction for CECI, as they facilitate the circulation of knowledge
and the review of the various initiatives undertaken.
CECI provides a unique intergovernmental forum for the exchange of best
practices and the sharing of experiences. These can be lessons learned at
the national level, or the exploration of those areas where international
cooperation have an impact on competitiveness and innovation.
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