By date

Higher education institutions (HEIs) are more critical than ever to help societies respond to the complex challenges of our times. Recognising that these challenges require HEIs to adopt holistic innovations in teaching, research and collaboration activities, the European Commission (EC) and the OECD have developed the HEInnovate guiding framework. HEInnovate promotes innovation and entrepreneurship in higher education and provides guidance to policy makers and HEIs that want to generate additional societal and economic value.This policy brief distils the main findings and recommendations of 13 HEInnovate Country Reviews that have examined higher education system and institution, identifying factors affecting the delivery of the entrepreneurial and innovation agenda in higher education. Looked at in the round, the country reviews provide HE leaders with peer-learning and best practices, policy makers with tested policy solutions and the European Union and the OECD with a deeper understanding of the state of innovation and entrepreneurship in higher education.

The OECD Toolkit for A Territorial Approach to the SDGs is designed as a user-friendly checklist to guide policy makers at all levels of government to implement a territorial approach to achieving the Sustainable Development Goals (SDGs). It provides a one-stop-shop including lessons learned from cities across the globe, proposing a How-To Guide for interested SDG champions, showcasing localised data and indicators, and a self-assessment tool for cities and regions looking to embrace the localisation path. Complimentary two-page snapshots illustrate the performance on the SDGs of cities and regions involved in the policy dialogues with the OECD.

Monitoring progress towards meeting the Paris Agreement requires improving the tracking and measurement of public climate expenditure, investment, and revenues. This OECD working paper was prepared as part of the joint OECD-European Commission project on 'Financing Climate Action in Regions and Cities'. It presents a pilot methodology for tracking, measuring, and comparing subnational government climate-significant expenditure and investment in OECD and EU countries based on National Accounts data. It also includes an analysis of the data collected, which is available in the new OECD Subnational Government Climate Finance database, and a stocktake of existing climate finance tracking initiatives. On the revenue side, the paper presents an analysis of climate-related public revenue sources available to subnational governments in OECD and EU countries, the results of which are available in the new online Compendium of Financial Instruments that Support Subnational Climate Action.

OECD economies are undergoing a seemingly inevitable process of population ageing that has been changing income and consumption patterns. Notably, the demand for health services is expected to increase, while labour forces are projected to shrink. Both factors are projected to negatively impact the sustainability of health systems – the former through an increase in government expenditures on health and the latter through a decrease in government revenues. As health systems and their funding streams tend to be at least partially decentralised in most OECD countries, this fiscal pressure is expected to be asymmetric across levels of government. The objective of this paper is to provide order-of-magnitude estimates of the possible effects of population ageing on government finances across OECD countries, and to discuss reforms to fiscal federalism and intergovernmental relations with the purpose of funding expenditures at all levels of government. 

The COVID-19 pandemic has had devastating effects on lives, the economy, and the public finances worldwide, drawing attention to the need to enhance resilience to future shocks. This paper focuses on subnational governments, given their important and growing role in the provision of essential public goods and services worldwide. The paper discusses key aspects of subnational resilience, in particular the sensitivity of subnational finances to macroeconomic cycles and shocks and the availability of fiscal buffers; the main factors influencing subnational governments’ ability to provide essential services during crises; and their ability to anticipate and prepare for future shocks, especially those related to climate change. The paper also discusses policy and institutional reform options for both national and the subnational governments to strengthen subnational resilience.

The OECD report Urban-Rural Linkages in Poland analyses the potential of urban and rural territories for development and improved well-being. Urban and rural areas have different yet often complementary assets, and their better integration is important for socio-economic and environmental performance. The report argues that local governments need to engage in partnerships where all parties are equal, as a higher form of urban-rural co-operation. Building urban-rural partnerships in Poland would help territories enhance the production of public goods; achieve economies of scale in public service provision; co-ordinate decisions where cross-boundary effects are important and increase the capacity of the partners. Yet a lack of trust and of policy integration hinder the effectiveness of partnerships. The report found that the main incentive for Polish local governments to enter into a partnership is access to EU funds. However, while Poland has developed solid experience in the management of EU funds, it would benefit from deepening the integration and complementarity among funding streams. Moreover, the report argues that strengthening metropolitan governance will underpin efforts to facilitate the formation and management of urban-rural partnerships.

The Implementation Toolkit of the OECD Principles on Urban Policy aims to facilitate and accelerate the uptake of the OECD Principles on Urban Policy (2019) as a driver of policy reform and improvement in diverse urban policy contexts. It consists of two interlinked and complementary components. First, a self-assessment framework provides governments with a user-friendly four-step guide and a series of questions and indicators to assess the state of play of their urban policy frameworks ('what'), and operational mechanisms ('how') as well as the outcomes. Second, a policy database offers a selection of 60+ leading examples from around the globe on how national and subnational governments are using the OECD Principles on Urban Policy on the ground to reshape their urban policy. Against the backdrop of current challenges surrounding cities, the Toolkit seeks to support national and subnational governments in making cities fit to face current and future shocks and opportunities.

Before the pandemic hit, the city of Bilbao had the highest economic growth in Spain from 2000 to 2018, driven by a shift from heavy industry to a service-based economy. It also benefitted from a burgeoning tourism and culture sector, thanks to developments such as the Guggenheim Museum in 1998. Plagued with high unemployment in the late 90s, unemployment started to drop until 2008. However, such promising trends were unable to shield the city from the 2008 global financial and later COVID-19 crisis. This study assesses inequality in Bilbao and how the COVID-19 pandemic and the city’s response and recovery measures have affected its inclusive growth agenda. It also examines how Bilbao’s approach to deploying a smart city strategy and localising the SDGs contributes to the city’s overall resilience and inclusive growth objectives.

The study is part of the OECD work stream Preparing Regions for Demographic Change, a megatrend that affects several important dimensions of public policy. The following three of them are particular relevant for Korea’s regions and rural places: (i) workforce dimension, (ii) social dimension and (iii) governance dimension. The report consists of three chapters. The first chapter depicts and benchmarks demographic trends in Korea regions against other regions from OECD countries. The second chapter examines a range of policies that can address socio-economic challenges related to demographic trends across the OECD and describes Korea’s current policy approach to manage demographic decline and ageing in regions and rural places. The third chapter identifies recommendations for Korea that can help respond to current economic and demographic trends, and ensure social cohesion. It suggests Korea should aim to develop a clear national rural development strategy, tailor labour policies to rural areas, support rural entrepreneurship, rural SME and the social economy, promote rural innovation and foster local governments’ and communities’ capacity to respond to demographic challenges.

Green budgeting is emerging at subnational levels as an important tool for regions and cities to use to align their expenditure and revenues with their green objectives, and enhance the transparency and accountability of their climate and environmental action. It is also a tool that subnational governments can use to prioritise low-carbon investments and identify funding gaps, as well as to mobilise additional sources of both private and public climate finance. In order for subnational governments to make full use of green budgeting however, more methodological, technical, and financial support is needed. This report presents a first stocktake of subnational green budgeting practices in OECD and EU countries as well as a set of guidelines for subnational governments to use in developing and launching a green budgeting practice. It is accompanied by two green budgeting case studies – one with the Region of Brittany (France) and one with the City of Venice (Italy) – and a self-assessment tool. The self-assessment tool allows regions and cities to measure their capacity to launch a green budgeting practice or strengthen an existing one, and is available on the OECD Subnational Government Climate Finance Hub as a downloadable Excel file.