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Measuring innovation South Asian Regional Workshop on Science, Technology and Innovation Statistics Kathmandu, Nepal 6-9 December 2010
Measuring Innovation Oslo Manual: Guidelines for collecting and interpreting innovation data UIS - Annex (OM, 2005): Innovation Surveys in Developing Countries
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.
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.
The innovation measurement framework
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.
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.
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. * Expenditures
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.
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).
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.
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.
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 *
Data collection The subject approach Innovative behaviour and activities of the firm as a whole Should R&D and innovations surveys be combined?
Example - pdt innov/degree of novelty
Example - innovation activities and expenditures for pdt and pcs innov
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.
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.
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.
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
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. (to be addressed)