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Www.uis.unesco.org Measuring innovation CENTRAL ASIAN SUB-REGIONAL CONSULTATION MEETING ON SCIENCE, TECHNOLOGY AND INNOVATION (STI) STATISTICS AND INDICATORS.

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Presentation on theme: "Www.uis.unesco.org Measuring innovation CENTRAL ASIAN SUB-REGIONAL CONSULTATION MEETING ON SCIENCE, TECHNOLOGY AND INNOVATION (STI) STATISTICS AND INDICATORS."— Presentation transcript:

1 Measuring innovation CENTRAL ASIAN SUB-REGIONAL CONSULTATION MEETING ON SCIENCE, TECHNOLOGY AND INNOVATION (STI) STATISTICS AND INDICATORS Tashkent, Uzbekistan 4-5 November 2010

2 Measuring Innovation Oslo Manual: Guidelines for collecting and interpreting innovation data UIS - Annex (OM, 2005): Innovation Surveys in Developing Countries

3 What is innovation? Innovation and economic development; Innovation is more than R&D; Innovation is the implementation of: (Technological innovation) New or significantly improved product (good/service) or process; (Non-tech. innovation) New marketing or organisational method. Types of innovation: Product; Process; Marketing; Organisational.

4 Why measure innovation? Innovation policy should be evidence-based; Innovation data... to better understand innovation and its relation to economic growth; to provide indicators for benchmarking national performance.

5 The innovation measurement framework

6 Diffusion and degree of novelty Diffusion… How innovations spread; Economic impact; New to the Firm / Market / World; Disruptive innovations; Significant impact on a market; Impact of innovations (as opposed to their novelty); May become apparent only long after introduction.

7 Innovation activities Innovation activities: All scientific, technological, organisational, financial and commercial steps which (intended to) lead to the implementation of innovations; Some innovation activities are themselves innovative, others are not novel activities but are necessary; R&D that is not directly related to the development of a specific innovation.

8 Innovation activities For product and process innovations: Intramural (in-house) R&D; Acquisition of R&D (extramural R&D); Acquisition of other external knowledge; Acquisition of machinery, equipment and other capital goods; Other preparations for product and process innovations; Market preparations for product innovations; Training. Preparations for marketing innovations: Activities related to the development and implementation of new marketing methods. Preparations for organisational innovations: Activities undertaken for the planning and implementation of new organisation methods.

9 Expenditures Current innovation expenditures: Labour costs; Other current costs; Capital expenditures: Land and buildings; Instruments and equipment; Computer software.

10 Kinds of innovation activities Successful - in having resulted in the implementation of a new innovation (though not necessarily commercially successful); Ongoing - work in progress, which has not yet resulted in the implementation of an innovation; Abandoned - before the implementation of an innovation.

11 Classifying firms by degree of innovativeness Innovative firm: The innovations need not have been a commercial success; Innovation-active firm: Regardless of whether the activity resulted in the implementation of an innovation; Potentially innovative firm: Innovation efforts but no achieved results (period); Key element for innovation policy; (Annex).

12 Factors influencing innovation Objectives: Motives for innovating; Effects: Outcomes of innovations; Competition, demand and markets; Production and delivery; Workplace organisation; Other (Table 9) ; Hampering factors: Reasons for not starting innovation activities at all, or factors that slow innovation activity or have a negative effect on expected results; Cost, Knowledge, Market and Institutional factors + Reasons not to innovate (Table 10).

13 Linkages Linkages connections with other agents; Source, cost, level of interaction; Types of external linkages: Open information sources; Acquisition of knowledge and technology; Innovation co-operation.

14 Sources for transfers of knowledge and technology Open information sources Sources for purchases of knowledge & technology Co- operation partners Internal sources within the enterprise: R&D / Production / Marketing / Distribution Other enterprises within the enterprise group ****** External market and commercial sources: Competitors Other enterprises in the industry Clients or customers Consultants / consultancy firms Suppliers Commercial laboratories ********** ********** ************ Public sector sources: Universities and other higher education institutions Government / public research institutes Private non profit research institutes Specialised public innovation support services ******** ******** ******** General information sources: Patent disclosures / Professional conferences, meetings, literature and journals / Fairs and exhibitions / Professional associations, trade unions / Other local associations / Informal contacts or networks / Standards or standardisation agencies / Public regulations *

15 Data collection The subject approach Innovative behaviour and activities of the firm as a whole The object approach Collection of data about specific innovations Should R&D and innovations surveys be combined?

16 Combining innovation & R&D surveys Pro Reduce overall response burden Analysing relation between R&D and innovation at the unit level Increases the frequency of innovation surveys Against Length of questionnaire Confusion between the concepts of R&D and innovation Different survey frames Possibility of merging with other business surveys (e.g. ICT, knowledge management practices)

17 Developing countries Developing countries 3 rd OM standards, but adaptations; LA: the Bogotá Manual (RICYT, 2001); UIS: Annex to 3 rd OM… Innovation Surveys in Developing Countries.

18 Characteristics of innovation in developing countries Size and structure of markets and firms; Instability; Informality; Particular economic and innovation environments; Reduced innovation decision-making powers; Weak innovation systems; Elements of innovation.

19 Innovation measurement in developing countries Incorporation of the concept of potentially innovative firm; Measurement priorities - why / what / how: Innovation capabilities (HR, Linkages, Quality assurance systems, ICTs); Expenditure on innovation activities; Organisational innovation.

20 Adaptations ICTs in innovation surveys Strategic use of new technologies (Front office vs. Back office); Linkages Agents + Types + Location; Innovation Activities Hardware purchase and Software purchase (split); Industrial design and Engineering activities (split); Lease or rental of machinery, equipment and other capital goods; In-house software system development; Reverse engineering; Human resources and training Quality and environmental management

21 Methodological issues for developing country contexts Weakness of statistical systems; Questionnaire design; Survey application; Frequency; Publication; Difficulties… Lack of appreciation of the importance of innovation; Managers are secretive about finance; Lack of adequate legislative base.

22 Thinking ahead The role of entrepreneurs and their attitudes towards innovation. The intention to capture innovations driven by factors other than market forces, in particular public sector innovations. Innovation in the primary sector (particularly in agriculture). Better measuring minor or incremental changes, including innovative applications of existing products or processes, and the so-called 'backwards integration' of technological capability. The development of indicators reflecting sub-national (regional) innovation systems.

23 Issues arising in the follow-up to the Annex Innovation in informal sector? Innovation from traditional knowledge? Surveying innovation, rather than R&D, in business (and informal) sector?

24 Thank you!


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