Innovation System Performance – how and what to measure? Birgitte Gregersen Department of business and management Aalborg university bg@business.aau.dk Globelics Academy Tampere May 2017

Agenda What do we mean by the performance of a National Systems of Innovation? How and what to measure? Innovation Union Scoreboard as point of departure Why? Informing policy makers Informing managers (input to strategies) Informing theory of innovation Reflections for empirical studies Why? The idea of building and promoting IS is appealing to both high and income countries Bench-marking of different NSIs has been introduced by various national and international policy analysis institutions Olympic medal counting (Archibugi & Coco, 2005) different measurements have been constructed and they are widely used in these policy papers. UNCTAD ICI, ArCo Index, IUS, etc. we need some kind of performance measures but the ones we have are not satisfactory

Source: EIS 2016

Source: EIS 2016

Source: EIS 2016

Group work (10 minutes) Group 1: discuss indicators of “enablers” Group 2: discuss indicators of “firm activities” Group 3: discuss indicators of “outputs” What is measured and what is not?

Source: EIS 2016

Source: EIS 2016

Source: EIS 2016

2) What do we mean by the performance of a National Systems of Innovation? Why? The idea of building and promoting IS is appealing to both high and income countries Bench-marking of different NSIs has been introduced by various national and international policy analysis institutions Olympic medal counting (Archibugi & Coco, 2005) different measurements have been constructed and they are widely used in these policy papers. UNCTAD ICI, ArCo Index, IUS, etc. we need some kind of performance measures but the ones we have are not satisfactory

Narrow and broad performance of NSI Narrow Performance Broad performance Narrow NSI approach Patents Scientific publications New high-tech product Number of high-tech spin-off companies University-Industry collaboration Broad NSI approach New to the market innovations (incl. medium and low tech sectors) UNCTAD ICI ArCo index Organizational innovations Innovation in health care and education Environmental innovations European Innovation scoreboard, IUS (SII) What do we mean by the performance of a NSI? If we have been neocl.: growth (the whole process collapses into one variable, GDP per capita) The concept of IS was developed to emphasize the interdependency between technical, organizational and institutional change in the process of innovation Innovation is a too complicated process to be reflected in one indicator Narrow and broad NSI Narrow and broad performance - examples double-narrow, double-broad - examples Gregersen & Johnson (2005)

Discrete and embedded performance of (broadly defined) NSI Discrete performance Embedded performance (econ. performance) Socio-economic performance Narrow performance concept Scientific publications Citations Patents Productivity growth Employment Bal. of Payment Broad performance concept Formation of new firms System Linkages UNCTAD ICI ArCo index UNIDO IPI Investment Export market shares UNDP HDI Social capital Sustainable growth European Innovation scoreboard, IUS Embedded performance: the contribution of innovations processes to what is traditionally called economic performance (employment, growth, social security...) Gregersen & Johnson (2005)

Static and dynamic performance of NSI Discrete performance Embedded performance (econ. performance) Socio-economic performance Static performance concept Number of engineers and scientists per capita Patents Productivity growth UNIDO IPI UNDP HDI Social capital Dynamic performance concept Education and comp. building Labour mobility Knowledge sharing Social security Political freedom Transparency European Innovation scoreboard, IUS Static and dynamic measure A static view focus on for instance the number of innovations produced in a certain period A dynamic view focus on the creation of environments and competencies capable of sustaining and increasing learning and innovation in the future Gregersen & Johnson (2005)

What are the main take away from today? Group work What are the main take away from today?