Global Innovation Policy Index

Ranks fifty-five nations' strategies to boost innovation capacity: policies on trade, scientific research, information and communications technologies, tax, intellectual property, domestic competition, government procurement, and high-skill immigration

University research: policy considerations to drive Australia’s competitiveness

Universities are integral to Australia’s research effort and provide the foundation of skills and knowledge required for the nation’s long-term success. Research and innovation have been consistently identified as essential ingredients for improving productivity and quality of life. If Australia is to continue to compete internationally, we must critically look at our performance and identify ways of strengthening all elements of the system. Australia’s research performance compares well internationally, both in productivity and research excellence. In terms of academic impact, there are clear areas of strength across the breadth of disciplines and Australia’s researchers are highly regarded. There is, however, room for improvement, especially relative to the best-performing nations. Knowledge exchange and the ease of translation of research into the broader economy and community are Australia’s main areas requiring substantial attention. An examination of the countries chosen for comparison—Switzerland, Denmark, the Netherlands, Singapore, South Korea, Malaysia, the United Kingdom and Canada—brings to light several similarities in their approaches that should be considered for Australia’s future approach: Long-term strategies and plans have been implemented, including targets and priority areas, accompanied by significant and ongoing support. The strategies focus on areas of national interest and comparative advantage and take into account the country’s industrial structure and location. The unique role of universities is recognised, as is the need to support a balance of investigator-led and mission-led research. If we are to improve Australia’s performance and achieve the broader aims for research, a range of matters needs to be considered by the university sector and government: Australia needs a long-term plan that outlines national priority areas and secures ongoing and reliable support for the fundamentals of the research system. Reward and recognition mechanisms at the researcher and university levels should be critically examined. We need to support a balance of basic and applied and investigator-led and mission-led research, maintaining the strong focus on research excellence. Australia must increase its efforts in both domestic and international collaboration, especially in the priority areas identified. The career path for researchers in all sectors must be improved. We must ensure our best and brightest can move freely between industry and academia. Holistic, ongoing funding for national research infrastructure is imperative. A transactional view of university–industry collaboration will not deliver the deep and productive relationships required to improve the translation of research. In view of accelerating investment in research and innovation by our Asian neighbours and traditional competitors, Australia could be close to the proverbial ‘tipping point’, whereby we are not able to achieve our goal of a high-wage, high-growth economy. A national strategy that addresses all facets of the system, targets both supply and demand, and includes long-term financial commitments is needed in order to bring about cultural change and improve Australia’s research and innovation performance. Universities Australia has prepared this paper to inform current and future debate about university research and its role in driving Australia’s competitiveness

Revenue diversification in emerging market banks: implications for financial performance

Shaped by structural forces of change, banking in emerging markets has recently experienced a decline in its traditional activities, leading banks to diversify into new business strategies. This paper examines whether the observed shift into non-interest based activities improves financial performance. Using a sample of 714 banks across 14 East-Asian and Latin-American countries over the post 1997-crisis changing structure, we find that diversification gains are more than offset by the cost of increased exposure to the non-interest income, specifically by the trading income volatility. But this diversification performance's effect is found to be no linear with risk, and significantly not uniform among banks and across business lines. An implication of these findings is that banking institutions can reap diversification benefits as long as they well-studied it depending on their specific characteristics, competences and risk levels, and as they choose the right niche

Labor and Management Relations in Large Enterprises in Korea: Exploring the Puzzle of Confrontational Enterprise-Based Industrial Relations

bor_and_Management_Relations_in_LargeKorea_IR_by_Lee.pdf: 2099 downloads, before Oct. 1, 2020

Skills, government intervention and business performance: implications for the regional skills partnership (RSP)

The aim of this briefing paper is to provide an understanding of the factors that determine the level of skills in the economy, the level and type of skills demanded by employers, and how these are translated into performance improvements by individual employees. The paper deals with these questions at the national and regional level, at the level of the firm and finally of the individual employee. It then uses this knowledge to identify the range of alternative measures available to policy makers

The Effect of Credit Guarantees on Survival and Performance of SMEs in Korea

This study evaluates the impact of provision of credit guarantee in Korea at the firm level. The data is assembled from two public funds providing credit guarantees covering the period 2000 to 2003. The sample firms consist of SMEs mainly. To measure the effects of credit guarantee, the relationship between credit guarantees, survival of firms, and their productive performance is analyzed. Since the data is collected as repeated cross sections and firms are not identified over time, the analysis is carried out by using a pseudo panel data approach. The pseudo panel data is created using time invariant firm characteristics. The result from regression analysis conducted indicates that the amounts of credit guarantee and the number of times a firm receives credit guarantees have effects on their survival and growth. The amounts of credit guarantee increase the growth of sales and productivity while frequency of credit guarantees decreases business failure. Size and age play a decisive role in survival of firms and their employment growth as well. Moreover, survival and performance of firms are different across periods, industries, and locations.Credit guarantee; SMEs; Pseudo panel data; survival; performance

ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development