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The slowdown in market demand for oil is putting increasing pressure on Kuwait's current economic and social model. This model is based on the distribution of petroleum export proceeds to Kuwaiti citizens, with relatively limited long-term investment in knowledge production and the upgrading of the national innovation capacity. The transition towards a knowledge-based society – where value creation, the resolution of societal challenges and the well-being of society at large will be based on the production, diffusion and implementation of knowledge – is becoming an imperative. This is recognised within the national development strategy which formulates the objective of attaining 'Smart Kuwait' by 2035. Such a transition is challenging and can only be achieved through the build-up of appropriate governance of the STI system with adequate institutions such as a Ministry and a professional agency with a mandate for research and innovation. This set-up should help raise awareness and reduce barriers to innovation, reinforce the scientific research base, develop the support for business innovation, foster knowledge diffusion and co‑creation between science and industry, build up the human capital needed, and establish the role of science, technology and innovation in tackling Kuwait's societal challenges.

Shenzhen is a stellar case of growth and economic transformation. Since its establishment as one of China’s first four Special Economic Zones in 1980, it has evolved at breakneck speed. Shenzhen transformed from a fishing village to a major world trade hub and is now home to global innovators in electronics. The Production Transformation Policy Review (PTPR) of Shenzhen, China reviews the city’s changing policy approaches, focusing on the shift from an assembly to a manufacturing centre and more recently to an innovation and start-up hub. Through a comprehensive assessment of Shenzhen’s experience, this review offers insights into the range of policies and strategies employed to stimulate industrial upgrading and learning in China. It provides lessons and actionable policy recommendations for the growth of cities and emerging economies in their catching-up journey. The PTPR of Shenzhen, China has been carried out in the framework of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development and has benefitted from government-business dialogues and international peer learning (University of Seoul, Korea; University of Georgetown, USA and Digital India Foundation, India).

There is a growing international concern about the slowdown in productivity growth, especially as labor productivity enhancements are important drivers of higher general-ised living standards. Using administrative data of firms in Portugal between 2010 and 2016, we analyse the relationships between productivity and wages. At odds with neoclassical theory of mar-ginal productivity of labor, we find that two thirds of firms insufficiently raised wages giv-en observed productivity growth. Employing unconditional quantile regressions, we in-vestigate some quantifiable determinants of the productivity-wage gap at different parts of the distributions. Most of the documented dynamics contributed not only to the diver-gence of productivity and wages but also to the decoupling of productivity and wage growth. We argue that labor market flexibilisation intensified segmentation, providing incentives for non standard contracts. Both dimensions, as well as higher board com-pensations, international trade and on-the-job training weakened the link between productivity and wages.

New analysis of global investments by venture capitalists (VC) in private companies focused on artificial intelligence (AI) found VC investments in AI to be growing at a dramatic pace. The United States and the People’s Republic of China are leading this wave of investments that tend to concentrate on a few key industries. The data showed that the European Union, United Kingdom and Japan increased investments, but lag behind the two dominant players. The study analysed venture capital investments in 8 300 AI firms worldwide, covering 20 549 transactions between 2012 and 2020, based on data provided by Preqin, a private capital-markets analysis firm in London. The data did not capture every deal and required some extrapolation, yet the timeliness of the findings provides a valuable source of information as national governments, international organisations, public and private sectors develop policies and strategies to capture the benefits of AI for all.

The promotion of widespread, affordable, and high-quality broadband is a prerequisite for the digital transformation of economies and societies. Foreseeing the role of broadband as an accelerator of economic, social and cultural development, the OECD adopted the Council Recommendation on Broadband Development in 2004. Since then, important developments have taken place in broadband technologies and markets. As part of the review of the 2004 Recommendation undertaken from 2018 to 2020 and resulting in the adoption of the revised 2021 OECD Council Recommendation on Broadband Connectivity, this report examines the evolution of broadband technologies, policies and regulation to foster broadband developments since 2004 as well as the benefits of, and challenges to, accelerating these developments to further enable digital transformation and inclusive growth.

Communication market structures and their effect on delivering efficient and inclusive connectivity is of key interest to policy makers and regulators. This report discusses emerging competition trends in OECD broadband markets that are shaping market structures, covering both fixed and mobile networks. The increasing complementarity of fixed and wireless networks and the convergence of previously separate markets have led to new forms of communication market competition. While convergence has been acting as a driver for market consolidation, there is also increased scrutiny in merger review. Some OECD countries are discussing options to keep mobile communication markets open to new entrants in the context of merger reviews, while others have experienced a recent wave of entry. The report explores the role of horizontal and vertical mergers in communication markets, presents examples of entry in mobile communication markets, and discusses some of effects of entry and consolidation in OECD markets.

Without connectivity, there can be no digital transformation of economies and societies. With this in mind, the OECD Recommendation of the Council on Broadband Development was adopted in 2004. Since then, broadband markets, underlying technologies, and the policies in place to spur the development of broadband networks have undergone significant changes. This document summarises the outcome of an extensive questionnaire sent to delegates of OECD countries and stakeholder groups. The questionnaire aimed to gather information on the experience of OECD countries concerning broadband development in general, and more particularly their experience in implementing the 2004 Recommendation. The responses to the questionnaire were used to inform the review and revision of the 2004 Recommendation, which resulted in the adoption of the 2021 OECD Council Recommendation on Broadband Connectivity.