The impact of information technology, innovation and entrepreneurship on economic performance is the subject of heated debate. Despite the current economic downturn, changes in these factors have brought about crucial, lasting changes to the growth dynamics of OECD countries.

This special edition of the Science, Technology and Industry Outlook takes a closer look at the ways in which these factors are evolving and how they relate to each other. It examines the main problem areas and recommends a number of policy responses. The areas which receive in-depth consideration include policies to increase returns from ICT investment, software, telecom reform, raising returns from R&D, industry science relations, and policies to facilitate the entry of new firms as well as the exit of existing uncompetitive ones. A key message is that an improved performance requires coherent and comprehensive policy responses. While domestic policy must take the lead in many areas, some of the obstacles to communication, scientific development, innovation and entrepreneurship cannot be removed through national measures alone. The report highlights a number of issues which require international solutions that can only be implemented through improved international co-operation.