This report discusses how the digital transformation – digital technologies, data
and software, AI-based analytics and other advances – is changing innovation processes
and outcomes. It highlights the general trends across the economy and factors behind
sector-specific dynamics, including increasing use of data as a key input for innovation,
the expanding possibilities for experimentation offered by virtual simulation, 3D
printing and other digital technologies, and the growing focus on services innovation
enabled by digital technologies.
In view of such changes, this report evaluates how innovation policies should adapt
to foster innovation and inclusive development in the digital age, and identifies
priority areas for policy action. It also explores novel innovation policy approaches
implemented by countries to foster digital technology adoption and collaborative innovation.