1. Measuring Innovation The 3 rd Community Innovation Survey in Portugal Manuel João Bóia mjboia@dem.ist.utl.pt Innovation and Technology Transfer MSc Engineering Design 17 October 2003

2. Outline 1.The Community Innovation Survey 2.Students Presentations 3. Results (CIS 3),  Innovative Enterprises by Sector and CIS Trajectories in the European Context  Input vs. Output of Innovation in Europe  Some Innovation Characteristics  Other Strategic and Organizational Important Changes  Innovation Sources  Innovation Barriers 4.Lessons Learned and Conclusions

3. CIS 31.1 Portugal Survey Sample Initial Sample: 4727 firms stratified by firm size and sector (INE–1999 Data)Initial Sample: 4727 firms stratified by firm size and sector (INE–1999 Data) Corrected sample: 4127 firmsCorrected sample: 4127 firms Sectors Surveyed Mining and Quarrying, all Manufacturing, Utilities, Wholesale Trade and a selection of industries in the Service SectorMining and Quarrying, all Manufacturing, Utilities, Wholesale Trade and a selection of industries in the Service Sector Survey Target Population All Manufacturing and Service firms with more than 10 employeesAll Manufacturing and Service firms with more than 10 employees

4. Innovation Definition Used: Market introduction of a product (Good or Service) new or significantly improved, or the introduction of new or significantly improved processes, based on new technological developments, new combinations of existing technologies or on the use of other type of knowledge acquired.Market introduction of a product (Good or Service) new or significantly improved, or the introduction of new or significantly improved processes, based on new technological developments, new combinations of existing technologies or on the use of other type of knowledge acquired. The innovation should be new to the company and not necessarily to the market. CIS 31.2 Portugal

5. Questionnaire Harmonized questionnaire (the same for Services and Manufacturing and other industries)Harmonized questionnaire (the same for Services and Manufacturing and other industries) Questions regarding:Questions regarding: General Information Basic Economic Information Product and Process Innovation Patents and Other Protection Methods Innovation Activities and Expenditure Intramural R & D Other Strategic and Organizational Important Changes Effects of Innovation Public Funding Innovation Co-operation Sources of Information for Innovation Hampered Innovation Activity Companies Characteristics Innovation Extension Companies Options Systemic Characteristics CIS 31.3 Portugal

6. Survey Start date: October 2001Start date: October 2001 Sample verification and validation (Name and Address) and identification of a contact personSample verification and validation (Name and Address) and identification of a contact person Mailing of Questionnaire with innovations examples and a postage free envelope for replying (fax reply also accepted)Mailing of Questionnaire with innovations examples and a postage free envelope for replying (fax reply also accepted) Systematic phone reminders plus two fax reminders and an additional questionnaire re-mailingSystematic phone reminders plus two fax reminders and an additional questionnaire re-mailing Support is provided on working days by phone, fax or e-mail by a multidisciplinary team of 6 trained staff peopleSupport is provided on working days by phone, fax or e-mail by a multidisciplinary team of 6 trained staff people End date --> 15 th April 2002End date --> 15 th April 2002 CIS 31.4 Portugal

7. Response Rates Small – 10 to 49 Employees Medium – 50 to 249 Employees Large - over 250 Employees CIS 31.5 Portugal

8. Lessons Learned from the CIS III Implementation: Unreliable Initial Sample (1999 Data)Unreliable Initial Sample (1999 Data) Non-Enforcement of the Policy regarding Mandatory SurveysNon-Enforcement of the Policy regarding Mandatory Surveys Biased General perception of Innovation Definition (“Radical” Innovation)Biased General perception of Innovation Definition (“Radical” Innovation) Services misperception of Innovation Definition (Product = Service or Goods)Services misperception of Innovation Definition (Product = Service or Goods) Non-Disclosure Policy of Financial DataNon-Disclosure Policy of Financial Data Lack of Qualifications of the Questionnaire Filling Contact Person (“Cultural” bias towards Non Response or Non Innovation)Lack of Qualifications of the Questionnaire Filling Contact Person (“Cultural” bias towards Non Response or Non Innovation) Lack of correspondence between the surveyed data/indicators and Companies data/indicators gathering.Lack of correspondence between the surveyed data/indicators and Companies data/indicators gathering. Mergers and Acquisitions (Availability of Contact Person and Data)Mergers and Acquisitions (Availability of Contact Person and Data) Huge paperwork!Huge paperwork! In Data Processing,In Data Processing, High values of “Item Non-response” in some strata (CAE 2 Digits*Dimension) of the realized sample for some variables, ”Exports Sales”, “Innovation Expenditure”, “Level of importance in Cooperation”, “Innovation Hampering Factors (partially)” and Patents Unreliable missing values imputation methodology and routines provided by Eurostat, surpassed in cooperation with other member states. 4.1

9. Students Presentations

10. 1.The Community Innovation Survey 2.Students Presentations 3.Results (CIS 3),  Innovative Enterprises by Sector and CIS Trajectories in the European Context  Input vs. Output of Innovation in Europe  Some Innovation Characteristics  Other Strategic and Organizational Important Changes  Innovation Sources  Innovation Barriers 4.Lessons Learned and Conclusions

11. Results - Innovative Enterprises by Sector and CIS Trajectories in the European Context Ireland Austria Germany Netherlands UK Sweden Norway France Luxemburg Belgium 0% 20% 40% 60% 80% 100% 20%40%60%80%100% Proportion of Manufacturing Innovating Enterprises Proportion of Service Innovating Enterprises Portugal Italy (1)For comparison with the data of 1995-1997 some Sub sectors (NACE 63, 73, 74.3 e 64 except 64.2) and the manufacturing companies in between 10 and 20 employees which were part of the CIS 3 survey are not considered (2)Includes the results not considered in (1). Note:Final disaggregated and comparable results are not yet available for the other participants in the exercise. (1) (2) CIS III (Preliminary) CIS II Finland 3.1

12. Ireland Germany Austria Netherlands UK Sweden Norway France Finland Belgium Portugal 0% 20% 40% 60% 80% 0.0%2.0%4.0%6.0%8.0% Expenditure in Innovating Activities as Share of Turnover Porportion of Innovative Enterprises Manufacturing Sector CIS III (Preliminary) CIS II Results – Input vs. Output of Innovation in Europe 3.2

13. Results – Some Innovation Characteristics 3.3  Innovation is Firm Size dependent (larger firms innovate more)  Innovation has sector specificities  The integration of the firm in a network (e.g., integration into a group) increases the probability to innovate  The level of competition in a market influences a firm’s probability to innovate (Highly competitive markets provide more innovative firms)

14. Results - Other Strategic and Organizational Changes 3.4

15. Results - Innovation Sources of Highly Importance for Manufacturing 3.5

16. Results - Innovation Barriers of Highly Importance 3.6

17. MSc Engineering Design CIS III Perspective 3.7

18. Lessons Learned and Conclusions: 1.The CIS is a good evolving instrument for benchmarking and follow up of the best practices, although incomplete in what concerns the systemic characteristics of innovation. 2.A significant increase in the innovation extension and in the firms innovation expenditure was achieved for Portugal in CIS III compared to CIS II. 3.In the innovation process, both sources and barriers to innovation profiles remain consistent with the CIS II data, where the most relevant are respectively “Within the Enterprise” and financial constraints. 4.Innovation expenditure has reached a milestone above which innovation effectiveness appears to be more correlated with factors of systemic nature. 5.Technological innovation appears to be strongly correlated with Organizational Innovation and Change. 4.2

19. Measuring Innovation The 3 rd Community Innovation Survey in Portugal Manuel João Bóia mjboia@dem.ist.utl.pt Innovation and Technology Transfer MSc Engineering Design 17 October 2003

20. Additional Slides

21. Results - Innovation Extension

22. Results – Product and Process Innovation Product Innovation Product and Process Innovation Process Innovation

23. Results - Innovation by Firm Size

24. CIS 3 Portugal

25. Results – Innovation by Technological Intensity (Manufacturing)

26. Results - Innovation Sources of Highly Importance for Services

27. Clear characteristic: the Portuguese companies ignore or do not choose to use patenting as a protection tool Results - Patenting

28. Results – Other Protection Methods Used