I. "[The OECD] suggests that governments should not merely encourage the supply of innovation (for example, by funding research), but also try to stimulate demand. Economies, after all, benefit not from the invention of new products or services, but form their diffusion. In countries that are good at commercializimg new ideas, such as America and Norway, even newly founded firms coin valuable intellectual property."
II. "The OECD encourages governments to rethink their policies in light of globalization and information economy. It notes that "intangibles" such as knowledge networks and open business models now make up much of the value of firms in rich countries and that many companies produce profitable innovations with little or no research in-house. For example, most of the research behind the iPod was done by other firms, but Apple reaped huge profits from its skill in design, systems integration and marketing."
a. I am not sure that what is meant is that many companies innovate without carrying out research in-house, thanks to open networks and business models. Indeed, it is odd that Apple, known as a company that resists open development models (except for the app developers for its ITune ecosystem), is brought as an example for the point. I recall a recent Scientific American podcast that discussed the success of Apple (and the iPod in particular) in driving technology in the direction of design and user experience. Nothing in that podcast interview suggested that Apple's skill-set was connected to open networks and business models.
b. The larger issue seems to be the interconnection between and among in-house invention and research (read: patents), in-house skills, open networks and innovation. Maybe the OECD conference addressed this question, but simply failed to include it within the magazine report--or maybe it did not. It would be interesting to know.
It Means Different Things to Different People