Today IPP contains over: 300 content webpages that discuss and summarize a wide variety of innovation policy related topics 1000 OECD chapters and working papers and 200 World Bank publications that have been tagged and linked to the IPP’s topic pages and country profiles 60 policy briefs, case studies and videos on different aspects of innovation policy, and also contains specific country information on around 90 jurisdictions 1400 statistical indicators and now links topic, country and document pages to relevant statistics IPP has a growing user base of more than 1000 practitioners, hosts more than 35 communities and delivers weekly activities that include webinars and online learning courses.

Matching Grants Study

Matching grants (MGs) have been implemented by the World Bank for over two decades. They remaina very popular instrument for private sector development interventions, despite often challenging implementation and insufficient evidence of impact. The objective of this study is to synthesize the current knowledge on MGs and to review the experience with this instrument, as designed and implemented by the World Bank from the early 1990s to the present. In doing so, we hope to equip teams in charge of ongoing and planned MG operations with a better understanding of the instrument and to help them choose the design and implementation arrangements that are best fitted to their objectives. We look at both the “why” and the “how” of MG programs, focusing on those aiming to foster private sector development and small and medium enterprises (SMEs) competitiveness primarily through the use of business development services (BDS).

SEZ Study

This CIIP-financed review aims to provide lessons learned from SEZ projects, using both the World Bank’s portfolio and an independent census of SEZs globally. The review will investigate the drivers of performance of SEZs. As a result, it should provide policy makers with guidance and knowledge in the design of SEZ projects and how to formulate appropriate objectives and measurable outcome indicators. By current estimates, there are approximately 3,500 SEZs in more than 130 countries worldwide that employ more than 60 million people. Citing East Asia as a success, many developing economies request financial and technical support from the World Bank Group to implement SEZ policies. In the 1980s and 1990s, the World Bank began to fund a series of SEZ projects. Currently, the World Bank’s portfolio of investment lending operations, prepared either in direct support of an SEZ or containing a component supporting an SEZ, consists of 37 projects, with a total commitment of $2.38 billion approved between 1973 and 2015. The World Bank SEZ portfolio review provides an opportunity to look at the developmental objectives of individual projects, the extent to which they were achieved in practice, the challenges faced, and the lessons learned that could inform the scope and design of subsequent projects. Usage of new datasets to cover a larger scope There is much debate about the factors influencing the success and failure of SEZs and why certain SEZs “fail,” recognizing that there is often no consensus even around the basic definitions of these terms.

INNOVATION POLICY PLATFORM

The Innovation Policy Platform (IPP) is a joint program between WBG and the OECD and over the past two years it has managed to build a sustainable platform whose content and functionality are increasingly utilized by the innovation policy community while constantly upgrading platform functionality and offering its users technological advancements. Following the launch of the IPP beta site in mid FY14, which included publications, statistics and web pages produced by the OECD and World Bank, the IPP project has focused on building innovation policy community of practice (CoP) and further developing technical functionality on the platform. Communities’ space is designed to facilitate participative knowledge exchange and collaboration between policy makers, analysts, international organizations and other non-governmental stakeholders and it supports different types of content: blog posts, discussions, a file-sharing system, collaborative editing, calendar events and links to external content.   Today IPP contains over: 300 content webpages that discuss and summarize a wide variety of innovation policy related topics 1000 OECD chapters and working papers and 200 World Bank publications that have been tagged and linked to the IPP’s topic pages and country profiles 60 policy briefs, case studies and videos on different aspects of innovation policy, and also contains specific country information on around 90 jurisdictions 1400 statistical indicators and now links topic, country and document pages to relevant statistics IPP has a growing user base of more than 1000 practitioners, hosts more than 35 communities and delivers weekly activities that include webinars and online learning courses.

COMPETITIVE CITIES

In FY15 the Cities Team completed the overview report: “Competitive Cities for Jobs and Growth: What, Who, and How” (the report will be publicly available December 2015). Supplementing and informing this overview document are several companion papers that provide the foundations for the main conclusions. The report aims to understand what makes a city competitive, and how more cities can be competitive. The goal of this research has been to create a robust body of knowledge to address cities’ questions on benchmarking their performance, on analyzing what has worked and what has not, and on understanding how to organize for delivery in different contexts. The report aims to analyze what makes a city competitive and how more cities can be competitive. Its objectives are: to understand what drives the economic outcomes of cities; and find an evidence-based approach for economic development strategies that maximize those outcomes. A “competitive city” successfully facilitates its firms and industries to grow jobs, raise productivity and increase incomes of citizens, therefore, the report argues that improving the competitiveness of cities is a pathway to eradicate poverty and increase shared prosperity. Millions of additional jobs could be created every year if more cities performed at the level of the world’s most competitive cities.  The analytical work generated by the CIIP team has led to multiple country engagements (e.g. South Africa, etc.), where the CIIP/Bank team provided direct technical support to city councils.  It has also led to a longer effort to disseminate findings, including during the EU Development Days (June 2015).

IMPLEMENTING INDUSTRIAL POLICY – EVIDENCE OF IMPACT

Building on the success of the inaugural event held at the WBG Headquarters in the fall of 2013, in FY15 the team organized a follow-up global conference titled: “New Growth Strategies: Delivering on their Promise?”.  The overall theme of the event, which attracted over 700 participants - double the participation compared to the inaugural conference, was exploring the effectiveness of industry level efforts across different countries. The keynote address at the opening of the event was delivered by Professor Dani Rodrik of the Institute for Advanced Study in Princeton.  It gathered practitioners from varied backgrounds who shared their experiences. The conference also brought world-class thinkers and academics who presented their theories and research; also speaking were representatives of government and the private sector. The event provided ample opportunity for debate with a number of lively discussions between panelists and the audience. The two day conference provided opportunity for CIIP experts to disseminate the latest body of practical experiences from implementing CIIP projects and knowledge initiatives through a number of smaller workshops organized on the second day. Sessions were webcast enabling even wider audience to participate. 

IMPLEMENTING INDUSTRIAL POLICY – LESSONS LEARNED

CIIP grant has helped distill and widely disseminate the latest body of knowledge on how to find and implement the right instrument that will work in the unique political economy contexts of each of our client countries.  The two papers on flexible delivery and implementation, a case study on delivery units, and two high level conferences, have together curated this body of existing knowledge, as well as pushed the frontiers of new knowledge, on industrial policy implementation in several political economy contexts. In FY15, the final in a series of policy research papers, on "Doing, Learning, Being: Some Lessons Learned from Malaysia's National Transformation Program" was finalized and published in January 2015 and is being disseminated since then. It is based on three field missions to Malaysia that concluded in May 2014. The case study analyzes the context and performance of the Malaysian Prime Minister’s Performance Management and Delivery Unit (PEMANDU), created in 2009. It then draws lessons that would be applicable to delivery units, more generally, in developing country contexts. Since then, the operational research agenda of the CIIP has been expanded to include on topics such as Special Economic Zones, small and medium size enterprise support, and the political economy of new industry strategies. Strengthening the Competitive Sectors network worldwide is being given special attention.

INDUSTRY-SPECIFIC GLOBAL VALUE CHAIN ANALYSES

In the past year the CIIP team completed the first of a series of Industry-Specific Global value Chain (GVC) Analyses. The first piece of work, focused on the automotive sectors in Colombia, Mexico, Serbia, Macedonia, Vietnam and Thailand, (to be released by the end of year 2015), allowed the team to demonstrate that different types of capital-, energy-, knowledge-intensive activities need to be present or nurtured in order to successfully link countries to value chains at the local, regional and global level. In doing so, the project has supported the preparation and is now supporting the implementation of a WB supplier development project in Macedonia as well as an IFC Automotive Backward Linkages project in Macedonia.  The project is also helping to put the GVC agenda among the private sector development priorities of the Serbian government.  One component of a $100 million WBG project on Competitiveness and Jobs in Serbia will focus on value chains.  The approach that was adapted as part of the project was included in technical assessment for the Rwandan government that aimed to support the design of a vendor supplier program for SMEs in specific sectors - mining and horticulture. The approach has also influenced the design of a $40 million lending project in Kazakhstan (SME Competitiveness Project) and a $20 million in Burundi (City Competitiveness for Job Creation) although the latter is on hold. Going forward, the CIIP team, jointly with colleagues from the IFC, aims to produce a number of such analyses in Agribusiness (focused on Dairy) and Light Manufacturing (focused on Textiles).   The ultimate goal is to enhance the relevance and quality of public and private investments in these priority industries with a view to enhancing productivity and competitiveness, responding directly to demand from client countries.