Measuring Innovation in Europe
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Measuring Innovation in Europe

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Measuring Innovation in Europe

Date: Tuesday, 18th September 2012 at 10h
National Agency for Regional Development
- Measuring Innovation that matters
Nesta Innovation Index: Measuring innovation in intangible assets.
What should be measured, why and how?

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  • Manufacturing accounts for more than three–quarters of total R&D investment, while it represents less than a quarter of total intangible investment (Figure 5). Investment in intangible investment is much more widely distributed across the different sectors of the economy. This is why looking at wider measures of innovation such as investment in intangibles can provide a better picture of innovation in services.
  • Relative strengths are in Human resources, Open, excellent and attractive research systems, Finance and support and Economic effects. Relative weaknesses are in Firm investments, Linkages & entrepreneurship, Intellectual assets and Innovators.
  • High growth is observed for R&D expenditure in the public sector, Public-private co-publications, and Community trademarks. A strong decline is observed for Non-EU doctorate students. Growth performance in Finance and support and Intellectual assets is well above average.
  • For Croatia, Serbia and Turkey growth in innovation performance has been between 4.1% and 5.3%, well above that of the EU27 in the same period. For the Former Yugoslav Republic of Macedonia growth performance is also above the EU27 average at 2.3%.

Measuring Innovation in Europe Measuring Innovation in Europe Presentation Transcript

  • This project is funded by the European UnionIntegrated Innovation Support Programme Measuring Innovation: The UK Innovation Index Dr Yannis Pierrakis, 18 Sep2012
  • A few firms create the majority of new jobs Job creation by existing UK businesses This project is funded by the European Union Firms New Firms New Firms New jobs jobs jobs 2002-05 2005-08 2007-10Source: Vital Growth (NESTA, 2011), based on the ONS Business Structure Database
  • This project is funded bythe European Union Definitions of innovation - "The successful exploitation of new ideas" (UK Department for Business, Regulatory Reform) - “Innovation activities are all scientific, technological, organisational, financial and commercial steps which actually, or are intended to, lead to the implementation of innovations.” (OECD)
  • This project is funded bythe European Union Linear model = linear measures Knowledge Knowledge Commercialised creation transfer Consumption product What: Basic science + What: Applied What: Product What: Use/ R&D research, development manufacture consumption Where: Where: Spinout Where: Industry Where: Individual Universities, industry companies, start-ups consumer R&D labs Patents Spin-out R&D produced companies investment created
  • This project is funded bythe European Union Linear measures = linear policies Knowledge Knowledge Commercialised creation transfer Consumption product What: Basic science + What: Applied What: Product What: Use/ R&D research, development manufacture consumption Where: Where: Spinout Where: Industry Where: Individual Universities, industry companies, start-ups consumer R&D labs Policy response: None Policy response: Policy response: None Policy response: R&D Lambert agreements, tax credit, science TTOs, KTPs, KTNs budget
  • The UK’s ‘poor performance’ inThis project is funded bythe European Union innovation •Policy has focused on improving the UK’s ‘poor performance’ •The UK lags behind its competitors on traditional indicators  Overall per capita expenditure on R&D  Business expenditure on R&D  Business levels of innovative activity  Extent of patenting activity
  • This project is funded bythe European Union The ‘UK paradox’ - A poor innovation performance but a strong economic growth - The structure of the UK economy has changed - The nature of innovation has changed - This might suggest that there is a gap between traditional indicators of innovation performance and how innovation really happens in the UK. - This gulf between practice and measurement reveals that there is an innovation gap. - Hidden innovation is the innovation that is not captured or recognised by traditional innovation indicators.
  • This project is funded bythe European Union Types of hidden innovation •Based on science and technology but excluded from traditional indicators •Innovation in processes, organisational forms or business models •Innovation from the novel combination of existing technologies and processes •Innovation that takes place ‘under the radar’ of many surveys
  • This project is funded bythe European Union User-centred innovation•Traditional, Manufacturer-Centred InnovationParadigm•Manufacturers identify user needs, developproducts at private expense, and profit by protectingand selling what they have developed•User-Centred Innovation Paradigm•‘Lead users’ innovate to solve their own needs atprivate expense and then freely reveal theirinnovations
  • New metrics innovationThis project is funded bythe European Union A gap has opened up between the practice, the theory, the measurement (and subsequently policies) of innovation. This innovation gap can produce a misleading view of national innovation performance. Nesta has developed expertise in measuring innovation, including a methodology called the innovation index that we are working with countries around the world to apply…. It breaks down what really drives innovation and productivity growth beyond investment in R&D.
  • This project is funded bythe European Union Audiences  Senior economic policymakers in Whitehall and the devolved administrations  Those responsible for the delivery of public services in Whitehall and the devolved administrations  Leaders of institutions who play a leading role in the UK’s ecology of innovation, notably university Vice- Chancellors, educators, business leaders, skills bodies, regulators and investors  Those responsible for regional economic development across the UK  Output must be credible with the private sector and the academic community
  • This project is funded bythe European Union Objectives 1. Contain clear insights for the main innovation actors in the UK 2. Account for ‘hidden innovation’, open innovation, user-led innovation, absorptive capacity and innovation in public services 3. As far as practicable, be comparable across similar sectors across different countries 4. Produce a series of outputs that are accessible to the media and policymakers 5. Form a framework for a systematic body of work on innovation measurement and recommendations for the improvement of underlying statistics
  • This project is funded bythe European Union Investment in innovation, ₤bn, 2008 The Index also provides historical innovation investment data going back R&D 16.0 to 1990 % of business output 16% Design 23.3 15% 14% 13% R&D 12% Organisational 11% Design 30.7 10% innovation 9% Org. Development 8% Training & 7% 27.1 6% Training skills development 5% 4% 3% Software Software 2% 21.6 Go to Market development 1% 0% Software “Go-to-market” 15.0 Other (copyright, 3.8 etc) 13.8% of Total 137.4 private sector output Source: Nesta Innovation Index
  • Investment in intangibles fell during the recession, but by less than tangible investmentThis project is funded bythe European Union
  • Manufacturing, finance and personal servicesThis project is funded bythe European Union are the most intangible–intensive industries
  • Manufacturing accounts for more thanThis project is funded bythe European Union three–quarters of total R&D investment
  • This project is funded bythe European Union
  • This project is funded bythe European Union
  • This project is funded bythe European Union
  • This project is funded bythe European Union Innovation Scoreboard