This article by OECD's Antonio Capobianco and Pedro Gonzaga focuses on whether algorithms can make tacit collusion easier, both in oligopolistic markets and in markets which do not manifest the structural features that are usually associated with the risk of collusion. It was published in the August 2017 edition of the CPI Chronicle.
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Successfully attracting investment and innovation in renewable energy requires not only core climate policies, such as pricing carbon, but also a focus on the broader investment environment. Based on new research from the OECD, this article reviews some of the main factors holding back investment and innovation in renewable energy and looks at what governments can do to take action.
There is no shortage of capital available globally to finance renewable-energy projects. The financial sector encompasses more than €100 trillion of assets. So how is it that investment in renewable energy is not flowing faster? This article by OECD policy analyst Geraldine Ang proposes responses to the trillion-dollar question.
How can we build a global economy driven by innovation when half the population is missing out on the action? The short answer is, we can’t.
Between 2000 and 2010, US manufacturing experienced a nightmare. The number of manufacturing jobs in the United States, which had been relatively stable at 17 million since 1965, declined by one third in that decade, falling by 5.8 million to below 12 million in 2010 (returning to just 12.3 million in 2016). Certainly, the 2007–08 recession accelerated the disruption, but the causes were also structural, not simply financial.
Space-based technologies are now as much a part of everyday life as electricity or running water. A range of activities from paying with a smart card to playing Pokémon Go use satellite networks to transmit data or get a positioning signal.
Economists working at the OECD were pioneers of a new approach that saw innovation not as something linear but as an ecosystem involving interactions among existing knowledge, research, and invention; potential markets; and the production process.
While the digital economy cannot be separated out from the rest of the economy, it is equally clear that some specific features of the digital economy may exacerbate the risks of base erosion and profit shifting for tax purposes–namely mobility (e.g. intangibles, business functions), reliance on data (and other forms of user input), network effects, and the spread of multi-sided business models.
Chile has established itself as a regional leader and has been rapidly closing the gap with other OECD countries in the field of digital government.
Digitalisation of goods and services destroys established business models and disrupts existing value chains. New value chains emerge. This is often called disruptive innovation.