Reports

Scotland (UK) is a strong innovator, ranking among the top 20% of economies among European regions, with strengths in university-firm collaborations and skills for innovation. With close to two-thirds of all growth in productivity from 2010 to 2018 coming from better use of resources in remote rural areas, rural areas are critical to economic prosperity. In addition to the valuable heritage that they offer, rural areas in Scotland have had remarkable achievements over the past decade in terms of economic growth, social innovation and progress for climate mitigation. Unlike the demographic decline perceived in OECD countries, the decline in rural areas of Scotland is much slower. In the case of accessible rural areas, the population is still growing. In part, much of the progress of ensuring well-being in rural areas, is supported by mechanisms to link entrepreneurs with researchers, regional support for entrepreneurs and an established system of social entrepreneurship. This report sets the scene, reviews main policies and programmes impacting rural innovation, and explores the importance of social innovation in rural areas. It provides recommendations to reinforce some of the good practices in Scotland, which is particularly important as the government implements the new National Innovation Strategy.

This paper estimates the data intensity of occupations/sectors (i.e. the share of job postings per occupation/sector related to the production of data) using natural language processing (NLP) on job advertisements in the United Kingdom, Canada and the United States. Online job advertisement data collected by Lightcast provide timely and disaggregated insights into labour demand and skill requirements of different professions. The paper makes three major contributions. First, indicators created from the Lightcast data add to the understanding of digital skills in the labour market. Second, the results may advance the measurement of data assets in national account statistics. Third, the NLP methodology can handle up to 66 languages and can be adapted to measure concepts beyond digital skills. Results provide a ranking of data intensity across occupations, with data analytics activities contributing most to aggregate data intensity shares in all three countries. At the sectoral level, the emerging picture is more heterogeneous across countries. Differences in labour demand primarily explain those variations, with low data-intensive professions contributing most to aggregate data intensity in the United Kingdom. Estimates of investment in data, using a sum of costs approach and sectoral intensity shares, point to lower levels in the United Kingdom and Canada than in the United States.

This paper investigates the demand for language skills using data on online job vacancies in 27 European Union member countries and the United Kingdom in 2021. Evidence indicates that although Europe remains a linguistically diverse labour market, knowing English confers unique advantages in certain occupations. Across countries included in the analyses, a knowledge of English was explicitly required in 22% of all vacancies and English was the sixth most required skill overall. A knowledge of German, Spanish, French and Mandarin Chinese was explicitly demanded in between 1% and 2% of all vacancies. One in two positions advertised on line for managers or professionals required some knowledge of English, on average across European Union member countries and across OECD countries in the sample. This compares with only one in ten positions for skilled agricultural, forestry and fishery workers and among elementary occupations.

Addressing 21st century development challenges requires investments in innovation, including the use of new approaches and technologies. Currently, many development organisations prioritise investments in isolated innovation pilots that leverage a specific approach or technology rather than pursuing a strategic approach to expand the organisation’s toolbox with innovations that have proven their comparative advantage over what is currently used. This Working Paper addresses this challenge of adopting innovations. How can development organisations institutionalise a new way of working, bringing what was once novel to the core of how business is done? Analysing successful adoption efforts across five DAC agencies, the paper lays out a proposed process for the adoption of innovations. The paper features five case-studies and concludes with a set of lessons and recommendations for policy makers on innovation management generally, and adoption of innovation in particular.

In the face of what has increasingly been referred to as an ongoing 'permacrisis', governments must cope with and respond to emerging threats while already grappling with longstanding issues such as climate change, digital disruption and low levels of trust. In this context, understanding new approaches and spreading successful ideas has never been more important. To promote this, the OECD Observatory of Public Sector Innovation (OPSI) has analysed 1 084 innovative initiatives from 94 countries to derive and understand novel government practices. The report discusses four key trends: 1) new forms of accountability for a new era of government, 2) new approaches to care, 3) new methods for preserving identities and strengthening equity and 4) new ways of engaging citizens and residents. Ten case studies and dozens of supporting examples illustrate these trends.

Improving the resilience of farmers against external shocks is a priority for policy makers. This paper measures the resilience of a sample of farmers in the United Kingdom to assess the impact of the 2011-12 drought on their productivity and income. The analysis allows for the distinction of four resilience capacities: to prepare; to absorb the immediate impact of the shock; to adapt farming practices to a new environment; and to transform the business model, and improve productivity and income in the longer term. Results show that a single farm rarely performs strongly across these four capacities, and that those farms that best absorb the impact of the drought, perform poorly in transforming their business after the shock. While size and diversification improve absorption and adaptation, innovation is a key driver of long-term resilience to keep the pace of productivity gains. In the past, policies on agricultural risk management focused on the absorption capacity of farms and on stabilising income. Forward-looking resilience policies today need to prioritise other capacities, in particular preparedness, adaptation and transformation.

The paper discusses the implications of recent advances in artificial intelligence for knowledge workers, focusing on possible complementarities and substitution between machine translation tools and language professionals. The emergence of machine translation tools could enhance social welfare through enhanced opportunities for inter-language communication but also create new threats because of persisting low levels of accuracy and quality in the translation output. The paper uses data on online job vacancies to map the evolution of the demand for language professionals between 2015 and 2019 in 10 countries and illustrates the set of skills that are considered important by employers seeking to hire language professionals through job vacancies posted on line.

New OECD surveys of employers and workers in the manufacturing and finance sectors of seven countries shed new light on the impact that Artificial Intelligence has on the workplace —an under-researched area to date due to lack of data. The findings suggest that both workers and their employers are generally very positive about the impact of AI on performance and working conditions. However, there are also concerns, including about job loss—an issue that should be closely monitored. The surveys also indicate that, while many workers trust their employers when it comes to the implementation of AI in the workplace, more can be done to improve trust. In particular, the surveys show that both training and worker consultation are associated with better outcomes for workers.