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Title page
Contents
Foreword 8
Acknowledgments 10
Executive summary: Making innovation policy work for development 12
1. Economic development, economic complexity and industrial policy 19
Introduction 19
Understanding relatedness and economic complexity 20
The game of Scrabble as a metaphor 21
Further implications of the Scrabble metaphor 22
Labor mobility leading to knowledge transfer 23
Policies to promote industrial development 24
A new era of industrial policies 28
Notes 30
2. Innovation capabilities as a guide for successful policy design 32
Introduction 32
Defining innovation capabilities 33
The innovation path 34
How can we measure innovation capabilities? 35
Why do economies specialize? 37
Distribution of capabilities around the world 40
Are all innovation capabilities equally important? 44
The complexity concept 45
The complexity spectrum 48
Why should an innovation ecosystem care about innovation complexity? 51
Leveraging capabilities to catch up 55
Related and unrelated capabilities 56
Looking for opportunities using relatedness and complexity metrics 59
Smart specialization 60
Fulfilled opportunities and untapped potential 61
Conclusion: the key to successful development 63
Notes 65
3. The importance of local capabilities in AgTech specialization 68
Introduction 68
Preparing the ground: importance of soil and context 70
AgTech evolution is hub dependent 72
Sowing the seeds: how public support propels AgTech development 77
Bearing fruits: when appropriability conditions, local capabilities and market opportunities drive the path 80
Conclusion 86
Notes 88
4. The evolution of the motorcycle industry from golden age to green revolution 91
Introduction 91
Born from bikes: how the motorcycle industry emerged from related industries 92
Riding in tandem: motorcycles and the automotive industry's evolution 93
Revving up the past: how national tech capabilities shaped the two-wheeler industry 93
Greener twists and turns: electrification on two and three wheels 100
From gears to gigawatts: how electrification is shifting motorcycle complexity 101
Conclusion: the changing landscape of the industry 102
Notes 105
5. Leveraging local know-how to develop video game hubs 107
Introduction 107
Not just a game: the nature of the video game industry 108
Multi-players: economic complexity and relatedness in the video game industry 109
Global Gamedev: four case studies 111
Controllers and creators: industrial policy in video game hubs 120
Conclusion: how industry hubs can foster growth and competitiveness 122
Notes 124
Technical notes 126
Country income groups 126
Scientific publication data 126
Trademark data 126
Patent data 126
Video game publishing data 127
International trade data 127
Mapping strategies 127
Acronyms 129
Bibliography 131
Table 4.1. The top 10 most frequent IPC classes for Japanese origin motorcycle patents, 1980-1990 96
Figure 1. Exporters of selected products in 2021 12
Figure 2. Millions of records used to map innovation capabilities in the World Intellectual Property Report 2024 13
Figure 3. Share of innovative outputs vs. GDP share, 2001-2020 13
Figure 4. Motorcycle firms have built on capabilities to specialize over time 14
Figure 5. Share of scientific and technological capabilities, Republic of Korea and India, 2001-2020 14
Figure 6. Republic of Korea and Egypt's innovation capabilities, 2017-2020 15
Figure 7. Share of capabilities in the top 100 complex fields, 2017-2020 16
Figure 8. The agriculture sector has sourced in new know-how that builds on existing capabilities 17
Figure 9. Video game capabilities developed from different pre-existing artistic capabilities 17
Figure 1.1. Exporters of selected products in 2021 20
Figure 1.2. Exported products clustered and connected based on common related capabilities 21
Figure 2.1. Share of innovation outputs vs. GDP share, 2017-2020 36
Figure 2.2. World shares of 626 scientific, technological and product fields, 2017-2020 37
Figure 2.3. Share of innovation outputs vs. relative comparative advantage, by country and capability, 2001-2020 38
Figure 2.4. Number of specialized capabilities by dimension, selected countries, 2001-2020 41
Figure 2.5. Percentage of countries specialized in given capability group, 2001-2004 and 2017-2020 42
Figure 2.6. Proximity map based on the capabilities co-occurrence of 626 scientific, technological and product fields, 2017-2020, grouped in 4 clusters 44
Figure 2.7a. Diversity vs. ubiquity, by country 45
Figure 2.7b. Diversity vs. ubiquity, by capability 46
Figure 2.8. Innovation capabilities ranked by complexity, grouped by domains 47
Figure 2.9. Republic of Korea and Egypt's innovation capabilities ranked by complexity, grouped by domains, 2017-2020 49
Figure 2.10. Complexity vs. GDP per capita, South America and South-eastern Asia, 2017-2020 53
Figure 2.11. Number of specialized top 50 complex capabilities by dimension, selected countries, 2001-2020 54
Figure 2.12. Proximity based on country co-occurrence of 626 scientific, technological and product fields, 2001-2020 56
Figure 2.13. Australia, Plurinational State of Bolivia and China mapped in the innovation capability space 57
Figure 2.14. Comparison of two capability strategies: maximum relatedness vs minimum time 58
Figure 2.15. Singapore's complexity and relatedness metrics for specialized and not specialized capabilities, 2001-2004 and 2017-2020 61
Figure 2.16. Canada and Colombia estimated number of patents based on scientific publications, 2001-2020 62
Figure 3.1. The diversification of the traditional sugarcane industry in Brazil 69
Figure 3.2. Total number of applications filed under patent, utility model, and plant varieties equivalent protection systems, 2000-2021 71
Figure 3.3. Total number of applications filed through the patent, plant patent, and plant varieties equivalent protection systems in the United States, 2000-2021 73
Figure 3.4. Total number of applications filed through the patent, utility model and plant varieties' protection systems, 2000-2021 75
Figure 3.5. Total number of applications filed through the patent, utility models, and plant varieties protection systems, 2000-2021 77
Figure 3.6. Agricultural R&D spending (in billions 2011 PPP) by the public and private by country income-levels, 1990, 2000 and 2004 78
Figure 3.7. Innovation capabilities of Kenya, Brazil and the United States, 2004 and 2020 81
Figure 3.8. Innovation capabilities in the AgTech sector for Kenya, Brazil and the United States 2004 and 2020 82
Figure 3.9. Innovation capabilities of AgTech and other sectors in the United States, 2004 and 2020 83
Figure 3.10. Innovation capabilities of AgTech and other sectors in Brazil, 2004 and 2020 84
Figure 3.11. Innovation capabilities of AgTech and other sectors in Kenya, 2004 and 2020 85
Figure 4.1. Origins of selected Japanese and Italian motorcycle firms, 1930-1960 93
Figure 4.2. Motorcycle-related patent filings by the top 15 origins, 1970-2021 94
Figure 4.3. Top 15 exporters of motorcycles by average annual value in USD billion, 2017-2022 94
Figure 4.4. Top 10 Nice classes filed by Ducati and Piaggio & C. SpA 98
Figure 4.5. Comparison of India's technological capabilities between 2004 and 2020 100
Figure 4.6. Share of e-cycle trade in global motorcycle trade, 2017-2022 100
Figure 4.7. Counts of international patent families for electric and ICE motorcycles, 1970-2020 101
Figure 4.8. Complexity scale for production and technological capabilities in the motorcycle industry, 2000-2020 101
Figure 5.1. Share of game developers around the world 108
Figure 5.2. Team size per game, 1950-2017 109
Figure 5.3. All video game patents, 1980-2021 110
Figure 5.4. Unique jobs roles per game, 1950-2017 110
Figure 5.5. Top patent filing countries of origin and destination 113
Figure 5.6. Flows of video game contributors switching platforms, 1950-2018 116
Figure 5.7. Top 5 Nice classes of video game-related trademarks, 1980-2022 119
Figure 5.8. Share of the top 5 Nice classes for video game-related trademarks, 1980-2022 120
Boxes
Box 1.1. How patent landscapes offer insights for innovation stakeholders 27
Box 2.1. International innovation-related data for global comparison 35
Box 2.2. Basic definitions of relatedness plus complexity indicators and metrics 51
Box 3.1. Defining AgTech 70
Box 3.2. IP instruments protecting AgTech inventions 72
Box 5.1. IP is important in video games 119
Combining economic analysis with in-depth industry studies, the 2024 edition of the World Intellectual Property Report introduces a new data-driven methodology designed to help policymakers make informed decisions by leveraging existing local innovation capabilities and strengthen their national innovation ecosystems. Complementing this framework are three case studies across the agriculture technology, motorcycle and video game industries, spanning eight different countries. These studies demonstrate how countries have successfully carved out specialized trajectories within innovative and complex industries.
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