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This paper uses panel regressions to investigate the effects of innovation policies and framework factors on business R&D intensity and patenting for a sample of 20 OECD countries over the period 1982- 2001. Both sets of factors are found to matter; the main determinants of innovativeness appear to be the availability of scientists and engineers, research conducted in the public sector (including universities), business-academic links, the degree of product market competition, a high level of financial development and access to foreign inventions. The effect of direct public financial support for business R&D is generally positive but modest, though it may larger for cash-constrained firms. Intellectual property rights appear to increase patenting significantly, but have little impact on R&D spending. Finally, the paper takes a closer look at the labour market for researchers, estimating jointly equations for employment and wages. Although the supply of scientists and engineers is eventually responsive to wage differentials, both with other professions and across countries, the evidence suggests that it may difficult to raise significantly the real amount of domestic R&D in the short run because the supply of researchers is relatively inelastic. (Wage Schedule and Reduced Form Coefficient Derivations are appended. Contains 93 footnotes, 4 figures, 1 box and 8 tables.)

Despite some weakening in the 1990s, partly due to sluggish trend growth, the Swiss innovation performance has been very strong. There are, however, areas in which policy reforms could strengthen innovation further and help Switzerland maintain its lead in the face of a changing global environment. Boosting competition, simplifying administrative burdens and reforming the bankruptcy law would go a long way towards stimulating the innovativeness of small enterprises in sheltered services sectors, which becomes more crucial to sustaining high domestic innovation in a context where large firms are increasingly mobile. On the other hand, the growing knowledge economy and the increasing competition from emerging countries in skill-intensive activities press for further upgrading the vocational education system and increasing the efficiency of the university system. Regarding innovation-specific policies, budget spending priorities on education and research should be better protected and more resources devoted to bridge the gap between fundamental research and the market, especially through the activities of the Commission for Technology and Innovation. This Working Paper relates to the 2006 OECD "Economic Survey of Switzerland" (www.oecd.org/eco/surveys/switzerland). A bibliography is included. (Contains 52 footnotes, 18 figures, 4 boxes, and 6 tables.)

This chapter examines the relationship between the rapid pace of trade and financial globalization and the rise in income inequality observed in most countries over the past two decades. The [...]

Over the past two decades, labor markets around world have become increasingly integrated. Political changes and economic reforms have transformed China, India, and the former Eastern bloc countries, effectively involving [...]

Asia's striking growth performance has long attracted the interest of both policymakers and researchers. For several decades, growth has been very strong in the region as a whole--even spectacular in [...]

Inflation in advanced and many emerging market economies has remained remarkably subdued over the past two years despite a significant rise in commodity prices, strong growth, and a broadly accommodating [...]

TABLE OF CONTENTS Introduction Preferences for female participation Policies affecting female labour force participation Family taxation Childcare subsidies and child benefits Parental leave Flexibility of working-time arrangements Anti-discrimination laws Other [...]