1. EUROSTAT METHODOLOGIES AND PRACTICE – INNOVATION STATISTICS AND INDICATORS FOR MONITORING OF EUROPEAN INNOVATION SYSTEM Reni Petkova - EUROSTAT 2-3 October 2008 Belgrade

2.  INTRODUCTION  EU LEGAL BASE ON INNOVATION STATISTICS  STANDARDISED APPROACH FOR INNOVATION DATA COLLECTION: CIS - BRIEF HISTORY  HARMONISED METHODOLOGY AND QUESTIONNAIRE FOR CIS 4  INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL  SUMMARY RESULTS FROM CIS 3 AND CIS 4

3. 2-3 October 2008 Belgrade INTRODUCTION BROAD-BASED INNOVATION STRATEGY FOR EU Main objectives:  To translate investments in knowledge into economic practice in order to make effective use of it  To foster innovation as a main asset of the EU economy  To lay down a framework for promoting all types of innovation  To encourage the development of innovation- friendly lead markets  EU to become an innovation-based society

4. 2-3 October 2008 Belgrade INTRODUCTION Sound statistical basis is needed in order to support the political efforts in the field of innovation. The Community Innovation Survey (CIS) provides this basis, being the main statistical instrument that allows monitoring the progress achieved towards the realization of EU innovation strategy

5. 2-3 October 2008 Belgrade LEGAL BASE FOR ESTABLISHMENT AND DEVELOPMENT OF HARMONISED STATISTICS ON INNOVATION AT EU LEVEL Framework legal act: Decision № 1608/2003/EC of the EP and of the Council concerning the production and development of Community Statistics on science and technology Legal implementation measure: Commission Regulation № 1450/2004 implementing Decision № 1608/2003/EC of the EP and of the Council concerning the production and development of Community statistics on innovation

6. 2-3 October 2008 Belgrade REQUIREMENTS OF CR № 1450/2004 ON INNOVATION STATISTICS  List of statistical variables to be compiled Every two years: 1/ Number of innovation active enterprises 2/ Number of innovating enterprises that introduced new or significantly improved products, new to the market 3/ Turnover from innovation, related to new or significantly improved products, new to the market

7. 2-3 October 2008 Belgrade 4/ Turnover from innovation, related to new or significantly improved products, new to the firm, but not new to the market 5/ Number of innovation active enterprises involved in innovation cooperation - by type of cooperation Every four years: 6/ Innovation expenditure (optional) 7/ Number of innovation active enterprises that indicated highly important effects of innovation - by type of effects

8. 2-3 October 2008 Belgrade 8/ Number of innovation active enterprises that indicated highly important sources of information for innovation - by type of source (optional) 9/ Number of enterprises facing important hampering factors - by type of hampering factors Beyond the statistics listed above, MS shall compile additional statistics (including their breakdowns) in accordance with the main themes listed in the Oslo Manual. These additional statistics will be decided in close cooperation with MS

9. 2-3 October 2008 Belgrade  Breakdowns of the variables and their measurement units (in absolute value and as a percentage)  Harmonised concepts and definitions to be implemented - the most recent version of Oslo manual  Type of variables on innovation: Obligatory Optional

10. 2-3 October 2008 Belgrade  Economic activities and sectors to be covered - minimum NACE Rev.1.1 sections: C, D, E, I, J; divisions: 51, 72 and groups: 74.2 and 74.3  Breakdowns of the results: By economic activity at division level (2-digits of NACE Rev.1.1) By economic activity at section level (1-digit of NACE Rev.1.1.) and by size classes in terms of employees: Small (10 - 49); Medium (50 - 249); Large (above 249)

11. 2-3 October 2008 Belgrade  Data sources to be used by MS - combination of different sources: sample surveys, administrative data or others of equivalent quality  Frequency of data compilation: Four yearly (CIS) - 7 obligatory and 2 optional variables Biannual, on each even year (CIS Light) - 5 obligatory variables  Types of data to be transmitted to Eurostat Aggregated statistics - compulsory Individual data records for all units surveyed - voluntary

12. 2-3 October 2008 Belgrade  Deadlines for data transmission to Eurostat: within 18 months after the end of the calendar year of the reference period  Confidential data provision  Standard transmission format for delivery of data to Eurostat For aggregated data - excel For individual data - CSV file  Transmission media - eDAMIS

13. 2-3 October 2008 Belgrade  Quality evaluation of innovation data by MS and Eurostat - Quality reports  Standard survey questionnaire for the CIS carried out every four years - shall cover the main themes listed in the Oslo Manual  Methodological recommendations for the CIS - shall at least cover the target population, the survey methodology (including regional aspects), the harmonised survey questionnaire, the collection, processing and transmission of the data and data quality requirements

14. 2-3 October 2008 Belgrade STANDARDISED APPROACH FOR INNOVATION DATA COLLECTION COMMUNITY INNOVATION SURVEY - BRIEF HISTORY Before establishment of EU legal base (under gentleman agreement with the MS) CIS 1 Conducted in 1993 for reference period (1990 - 1992) Coverage - limited to the manufacturing sector Invalidated EU totals and averages Only separate results published for each country

15. 2-3 October 2008 Belgrade CIS 2 Conducted in 1997 for reference period (1994 - 1996) Coverage - manufacturing sector and selected services Questionnaire - two different questionnaires used for manufacturing and services Methodology based on the 1997 revision of the Oslo manual (2nd edition) Calculation of EU averages

16. 2-3 October 2008 Belgrade CIS 3 Conducted in 2001 for reference period (1998 - 2000) Coverage - manufacturing sector and entire service sector Questionnaire - common standard questionnaire for both manufacturing and service sector Harmonised methodological recommendations Transmission of aggregated and micro data to Eurostat

17. 2-3 October 2008 Belgrade CIS light Conducted in 2003 for reference period (2000 - 2002) Limited to the main indicators on innovation Carried out in several countries Transmission of aggregated and micro data to Eurostat

18. 2-3 October 2008 Belgrade After establishment of EU legal base CIS 4 Conducted in 2005 for reference period (2002 - 2004) Compulsory for the MS - in line with CR № 1450/2004 Went beyond 1997 Oslo manual (2nd edition) including organizational and marketing innovations Transmission of aggregated data (compulsory) and micro data (voluntary) to Eurostat

19. 2-3 October 2008 Belgrade CIS 2006 (light) Conducted in 2006 for reference period (2004 - 2006) Compulsory for the MS - in line with CR № 1450/2004 Methodology based on 2005 Oslo manual (3rd edition) Included on voluntary basis pilot modules on organizational and marketing innovations and knowledge management Transmission of aggregated data (compulsory) and micro data (voluntary) to Eurostat

20. 2-3 October 2008 Belgrade CIS 2008 Currently at final preparatory stage Will be conducted in 2009 for reference period (2006 - 2008) Questionnaire will include:  ‘One-off’ module on eco-innovation  Industrial design as a separate innovation activity  Revised and expanded versions of questions on organisational and marketing innovation  Innovation objectives instead innovation effects Questions on hampering factors and intellectual property will be dropped Implementation of NACE Rev. 2

21. 2-3 October 2008 Belgrade HARMONISED METHODOLOGICAL RECOMMENDATIONS FOR CIS4 TARGET POPULATION Core coverage (obligatory): Mining and quarrying (NACE 10-14) Manufacturing (NACE 15-37) Electricity, gas and water supply (NACE 40-41) Wholesale trade (NACE 51) Transport, storage and communication (NACE 60-64) Financial intermediation (NACE 65-67) Computer and related activities (NACE 72) Architectural and engineering activities (NACE 74.2) Technical testing and analysis (NACE 74.3)

22. 2-3 October 2008 Belgrade Additional (non-core) coverage (voluntary) in descending priority order: Research and development (NACE 73) Construction (NACE 45) Motor trade (NACE 50) Retail trade (NACE 52) Legal, accounting, market research, consultancy and management services (NACE 74.1) Advertising (NACE 74.4) Labour recruitment and provision of personnel (NACE 74.5) Investigation and security activities (NACE 74.6) Industrial cleaning services (NACE 74.7)

23. 2-3 October 2008 Belgrade TARGET POPULATION Size-classes - minimum all enterprises with 10 employees or more Statistical unit - the enterprise Observation period - 2002-2004 inclusive; the reference period - year 2004 SURVEY METHODOLOGY Sampling frame - official, up-to-date, statistical business register Type of survey - census, sample survey or a combination of both

24. 2-3 October 2008 Belgrade SURVEY METHODOLOGY Stratification variables: - Economic activities (NACE Rev.1.1 at 2-digits; NACE 74 at 3-digits) - Enterprise size (number of employees) - Regional aspects Sample size - to meet the precision levels required for 5 basic indicators (listed below) Sample selection and allocation - random sampling techniques, optimum allocation

25. 2-3 October 2008 Belgrade COLLECTING AND PROCESSING OF DATA SAS programs for processing the data - provided by Eurostat Survey questionnaire - harmonised survey questionnaire for all NACE Rev.1.1 sectors Data collection - mainly by mail, might be combined with other surveys Data editing - data quality checks at micro- and macro- level, checking routines of the SAS programs

26. 2-3 October 2008 Belgrade DATA QUALITY Response rates - efforts to minimise unit (and item) non-response; at least two reminder letters Unit non-response and non-response survey - If non- respondents exceed 30%, non-response survey in at least 10% of the non-respondents should be carried out aiming to determine if the non-respondents are innovators or not Item non-response - should be kept at a minimum by asking the enterprises for the additional information needed

27. 2-3 October 2008 Belgrade Imputation - by SAS application For metric variables - weighted mean within the stratum is applied For ordinal, nominal and percentage variables – nearest-neighbour imputation technique is used Weighting and calibration - software packages to derive calibrated weights (CLAN, CALMAR, CALJACK)

28. 2-3 October 2008 Belgrade Precision of results - determined 95% confidence intervals for 5 indicators 1/ Percentage of innovation active enterprises 2/ Percentage of innovators that introduced new or improved products to the market 3/ New or improved products, as a percentage of total turnover 4/ Percentage of innovation active enterprises involved in innovation cooperation 5/ Total turnover per employees

29. 2-3 October 2008 Belgrade TRANSMISSION OF DATA Types of data to be transmitted - aggregated data (compulsory); micro data (voluntary) Output tabulation scheme - developed by Eurostat in cooperation with MS Transmission tools - eDamis Deadlines - 18 months after the end of the reference period

30. 2-3 October 2008 Belgrade CIS 4 HARMONISED QUESTIONNAIRE CIS 4 harmonised questionnaire includes all variables defined in CR № 1450/2004 (obligatory and optional) plus some additional highly required variables (voluntary) CIS 4 questionnaire comprises 11 sections: 1/ General information about the enterprise 2/ Product innovation 3/ Process innovation 4/ Ongoing or abandoned innovation activities 5/ Innovation activities and expenditures

31. 2-3 October 2008 Belgrade CIS 4 HARMONISED QUESTIONNAIRE 6/ Sources of information and co-operation for innovation activities 7/ Effects of innovation 8/ Factors hampering innovation activity 9/ Intellectual property right 10/ Organisational and marketing innovations 11/ Basic economic information on the enterprise (turnover, employees)

32. 2-3 October 2008 Belgrade INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL PRODUCT AND PROCESS INNOVATION INDICATORS By type of innovation activity  Product innovators only  Process innovators only  Product and process  Enterprises with only ongoing and/or abandoned innovation activity

33. 2-3 October 2008 Belgrade All enterprises Enterprises with innovation activity Product innovators only Process innovators only Product and process innovators Enterprises with only ongoing and/or abandoned innovation activities Non-innovative enterprises

34. 2-3 October 2008 Belgrade Product and/or process innovators (successful innovators) Product innovators only Process innovators only Product and process innovators

35. 2-3 October 2008 Belgrade Product innovators Product innovators only Product and process innovators Process innovators Process innovators only Product and process innovators

36. 2-3 October 2008 Belgrade PRODUCT AND PROCESS INNOVATION INDICATORS By location of innovation development Enterprises with product innovation activity developed  Mainly by the enterprise or enterprise group  By the enterprise together with other enterprises or institution  Mainly by other enterprises or institutions Enterprises with process innovation activity developed  Mainly by the enterprise or enterprise group  By the enterprise together with other enterprises or institution  Mainly by other enterprises or institutions

37. 2-3 October 2008 Belgrade PRODUCT AND PROCESS INNOVATION INDICATORS By type of product innovation Enterprises that have new or significantly improved products  Only new to the firm  New to the market Turnover of:  Unchanged or marginally modified products  New or significantly improved products only new to the firm  New or significantly improved products new to the market

38. 2-3 October 2008 Belgrade INNOVATION ACTIVITY AND EXPENDITURE INDICATORS Enterprises, engaged in:  Intramural (in-house) R&D - (Continuous R&D / Occasional R&D)  Extramural R&D  Acquisition of machinery, equipment and software  Acquisition of other external knowledge  Training  Market introduction of innovations  Other preparations

39. 2-3 October 2008 Belgrade INNOVATION ACTIVITY AND EXPENDITURE INDICATORS Total innovation expenditure in 2004:  Intramural (in-house) R&D - (Continuous R&D / Occasional R&D)  Extramural R&D  Acquisition of machinery, equipment and software  Acquisition of other external knowledge

40. 2-3 October 2008 Belgrade INNOVATION ACTIVITY AND EXPENDITURE INDICATORS Enterprises that received public funding from:  Local or regional authorities  Central government  The European Union (EU) From the 5 th or 6 th Framework Programme

41. 2-3 October 2008 Belgrade OTHER INDICATORS COMPILED FOR ENTERPRISES WITH INNOVATION ACTIVITY Enterprises indicating high importance of selected sources of information for innovation activities (Internal sources, Market sources, Institutional sources, Other sources) Enterprises with innovation co-operation by the type of partner and its location Enterprises indicating the most valuable type of co- operation partners Enterprises indicating high (observed) effect of selected effects of innovation activities (Product oriented effects, Process oriented effects, Other effects)

42. 2-3 October 2008 Belgrade INDICATORS COMPILED FOR BOTH ENTERPRISES WITH AND WITHOUT INNOVATION ACTIVITY Enterprises with abandoned or seriously delayed innovation activity Enterprises indicating the high importance of selected factors hampering innovation activity (Cost factors, Knowledge factors, Market factors) Enterprises indicating the high importance of selected reasons for not innovating (Due to prior innovations, Because of no demand for innovations)

43. 2-3 October 2008 Belgrade INDICATORS COMPILED FOR BOTH ENTERPRISES WITH AND WITHOUT INNOVATION ACTIVITY Enterprises used selected protection methods of intellectual property rights (Applied for a patent, Registered a trademark, Registered an industrial design, Claimed copyright) Enterprises which introduced organisational and/or marketing innovations Enterprises indicating highly important effects of organisational innovation

44. 2-3 October 2008 Belgrade INDICATORS FOR MEASUREMENT OF INNOVATION ACTIVITY AT EU LEVEL All indicators compiled on innovation are broken down by economic activities (NACE Rev.1.1) and size classes (by number of employees) National aggregated CIS 4 data are sent to Eurostat in standard output tabulation scheme, containing 18 Tables in Excel workbook. Data validation rules are in place within the tables CIS 4 aggregated and micro data are received electronically via eDAMIS from 29 countries: 25 MS; 2 CC (BG, RO) and 2 Others (IS, NO)

45. 2-3 October 2008 Belgrade QUALITY EVALUATION OF INNOVATION DATA Quality Reports produced by MS cover six quality criteria and cost/burden issue:  Relevance  Accuracy  Timelines and Punctuality  Accessibility and Clarity  Comparability  Coherence  Cost and Burden

46. 2- 3 October 2008 Belgrade QUALITY INDICATORS Data availability rate; Coefficient of variance; Coverage errors; Measurement errors; Processing errors; Non-response (unit, item); Imputation rate; Coherence with Structural business statistics (SBS); Time spent for production of innovation data (response burden); Cost of innovation statistics Example for quality indicator on coherence of data originating from SBS and CIS 4: Differences between data on turnover for all enterprises in NACE C ‘Mining and quarrying’

47. SBS turnover as a % of CIS 4 turnover, NACE C ‘Mining and quarrying’ - reference year 2004 2-3 October 2008 Belgrade

48. INNOVATION DATA DISSEMINATION AND PUBLICATIONS Eurostat data base NewCronos Aggregated data for CIS 2, CIS 3, CIS 4 and CIS light are stored into NewCronos Data availability for 29 countries: 25 MS; 2 CC (BG, RO) and 2 Others (IS, NO) All data are available free of charge on the Eurostat webpage, theme Science and technology http://epp.eurostat.cec.eu.int/portal/page?_pageid=1090,30070682,1 090_30298591&_dad=portal&_schema=PORTAL http://epp.eurostat.cec.eu.int/portal/page?_pageid=1090,30070682,1 090_30298591&_dad=portal&_schema=PORTAL

49. 2- 3 October 2008 Belgrade INNOVATION DATA DISSEMINATION AND PUBLICATIONS Anonymised micro data on innovation are available on CD for further scientific research It is also possible to access the non-anonymised micro data via the SAFE Centre at the premises of Eurostat in Luxembourg The description of the micro data and ways to access these one are available on our website at the following link: http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1913,4756782 5,1913_57936852&_dad=portal&_schema=PORTAL http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1913,4756782 5,1913_57936852&_dad=portal&_schema=PORTAL

50. 2-3 October 2008 Belgrade EUROSTAT PUBLICATIONS News release Statistics in Focus Pocket books Statistical books All R&D data and publications can be downloaded in electronic from without charges, through the Eurostat homepage http://epp.eurostat.ec.europa.euhttp://epp.eurostat.ec.europa.eu

51. 2-3 October 2008 Belgrade SUMMARY RESULTS FROM CIS 3 AND CIS 4

52. 2-3 October 2008 Belgrade

54. INDUSTRY SERVICES

55. 2-3 October 2008 Belgrade