3rd International Workshop on Innovation
                                     and Performance Management


     The Evalua...
Content
      Introduction
      Literature Reviews
      Evaluation Framework of Manufacturing
       Innovation Capac...
Introduction
      China wants to become an Innovation-Driven Nation by
       2020. Now China is the largest manufacturi...
Content
      Introduction
      Literature Reviews
      Evaluation Framework of Manufacturing
       Innovation Capac...
Literature Reviews
      European innovation scoreboard, 2009
          Summary innovation index includes enablers, firm...
Literature Reviews
      The Report on Innovation and Development in China,
       2009(the Center for Innovation and Dev...
Content
      Introduction
      Literature Reviews
      Evaluation Framework of Manufacturing
       Innovation Capac...
Evaluation Framework

      Definition of manufacturing
       innovation capacity
      Manufacturing innovation capaci...
Definition of Manufacturing
           Innovation Capacity
 Manufacturing innovation capacity is the capability of
  manu...
Manufacturing Innovation
                Capacity Index

           Innovation                  Innovation
            Str...
Index             Sub-index                            Indicator

                                        Personnel engage...
S&T personnel (% of workforce)
                                      Funding for S&T activities (% of turnover)

         ...
Evaluation Method
 A revised Min-Max Normalization is applied for
  computing the standardized value of the indicator, in...
Evaluation Method
 Firstly, the standardized value of indicator, ranging
  from 0 to 1 as follows:


            Positive...
Evaluation Method
 Secondly, the index is calculated according to the
  Weighted Arithmetic Average method. The index
  s...
Content
      Introduction
      Literature Reviews
      Evaluation Framework of Manufacturing
       Innovation Capac...
2007     2008   Top 10 industries
                                                      Rank
                             ...
The Average Annual Growth Rate of
                            MICI from 2001 to 2008

                                    ...
2007     2008   Top 10 industries

                                        CECOEE 1
                                      ...
2007    2008   Top 10 industries
                                         CECOEE
                                         ...
Conclusions
      The evaluation method is more reasonable for innovation
       capacity of CM, whose score is comparabl...
Conclusions
      To enhance creation, protection, utilization and management
       capabilities for IPRs.
      To str...
Thank You!
             Phone(O):0086-10-62540631
            E-mail: chenfang@casipm.ac.cn
       Address: No. 55, East Z...
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Paper 7: Innovation Capacity of Chinese Manufacturing (Chen)

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Paper 7: Innovation Capacity of Chinese Manufacturing (Chen)

  1. 1. 3rd International Workshop on Innovation and Performance Management The Evaluation of Innovation Capacity of Chinese Manufacturing CHEN Fang, Professor MU Rongping Institute of Policy and Management, CAS 2010-7-2 1
  2. 2. Content  Introduction  Literature Reviews  Evaluation Framework of Manufacturing Innovation Capacity in China  Evaluation Results of Innovation Capacity of CM  Conclusions 2010-7-2 2
  3. 3. Introduction  China wants to become an Innovation-Driven Nation by 2020. Now China is the largest manufacturing country, but not the strongest one.  How to monitor the progress of manufacturing innovation capacity-building in China, to indentify the key factors affecting capacity-building, and to provide effective policies.  It is important and necessary to build up a systemic evaluation framework of innovation capacity for CM. 2010-7-2 3
  4. 4. Content  Introduction  Literature Reviews  Evaluation Framework of Manufacturing Innovation Capacity in China  Evaluation Results of Innovation Capacity of CM  Conclusions 2010-7-2 4
  5. 5. Literature Reviews  European innovation scoreboard, 2009  Summary innovation index includes enablers, firm activities, outputs.  WEF Report is concerned with innovation capacity index(ICI).  IMD Yearbook have S&T competitiveness.  World Bank puts out knowledge economic index(KEI).  Luis、Furmana、Porter、Stern、Mathews etc.  《Oslo Manual》(OECD)  Emphasizing the research on industrial innovation measuring, concerning innovation for product, process, institution, market, etc. 2010-7-2 5
  6. 6. Literature Reviews  The Report on Innovation and Development in China, 2009(the Center for Innovation and Development of CAS)  The Report on Innovation and Development Index in China, 2008(RUC)  The survey report on China’s industrial innovation capacity(Ministry of Science and Technology, P.R. China,2006) 2010-7-2 6
  7. 7. Content  Introduction  Literature Reviews  Evaluation Framework of Manufacturing Innovation Capacity in China  Evaluation Results of Innovation Capacity of CM  Conclusions 2010-7-2 7
  8. 8. Evaluation Framework  Definition of manufacturing innovation capacity  Manufacturing innovation capacity index  Evaluation method 2010-7-2 8
  9. 9. Definition of Manufacturing Innovation Capacity  Manufacturing innovation capacity is the capability of manufacturing to carry out technology development, diffusion, application and other innovation activities so as to achieve economic and social performance under certain conditions.  In broad sense, manufacturing innovation capacity is a wide range of the capability of manufacturing enterprises to integrate innovation resources so as to transform them into wealth. 2010-7-2 9
  10. 10. Manufacturing Innovation Capacity Index Innovation Innovation Strength Effectiveness innovation input innovation input innovation output innovation output innovation performance innovation performance S&T Finance Tax …… Input Indicator System of Manufacturing Innovation Capacity 2010-7-2 10
  11. 11. Index Sub-index Indicator Personnel engaged in S&T activities Funding for S&T activities Innovative Input Strength Index Expenditures for absorb and digest Projects for S&T activites Number of S&T institutions Innovation Strength Index Invention patents owned Innovative Output Invention patent applications Strength Index Utility model or design patent applications Gross industrial value added Innovative Performance Strength Index Revenue from the sale of new products 2010-7-2 11
  12. 12. S&T personnel (% of workforce) Funding for S&T activities (% of turnover) Innovative Input Expenditures for absorb and digest (% of expenditures for indraught of technology) Effectiveness Index Projects for R&D (% of projects for S&T activities) Enterprises having S&T institutions (% of total industrial enterprises) Invention patents owned per enterprise Invention patent applications per 10,000 S&T personnel Invention patent applications per 100 million funding for S&T Innovative Output activities Effectiveness Index Utility model or design patent applications per 10,000 S&T personnel Innovation Effectiveness Utility model or design patent applications per 100 million funding for Index S&T activities Labor productivity Revenue from the sale of new products (% of turnover) Gross industrial values added per energy consumption Gross industrial values added per industrial waste water discharge Innovative Performance Industrial solid wastes utilized (% of total wastes utilized, stocked, Effectiveness Index treated, and discharged) Volume of industrial waste gas emission (% of volume of waste gas emission and removed) Gross industrial values added per original value of productive equipment 2010-7-2 12
  13. 13. Evaluation Method  A revised Min-Max Normalization is applied for computing the standardized value of the indicator, in order to make the index comparable within several years.  the maximum value and the minimum number should be less the smallest one, and they are determined by experts with considerations of the pre-calculation by Trend Extrapolation Methods  the weight of each indicator is given according to its importance assigned by selected experts in China 2010-7-2 13
  14. 14. Evaluation Method  Firstly, the standardized value of indicator, ranging from 0 to 1 as follows: Positive Xj X s _ min Ij  j indicator X s _ max j X s _ min j Negative Xj X s _ min indicator I j  1 j X s _ max j X s _ min j 2010-7-2 14
  15. 15. Evaluation Method  Secondly, the index is calculated according to the Weighted Arithmetic Average method. The index score of the indicator l at the level k , is given by: mi I ( k ,l )  w ( i , j ) 1 I (i , j ) (i , j ) 2010-7-2 15
  16. 16. Content  Introduction  Literature Reviews  Evaluation Framework of Manufacturing Innovation Capacity in China  Evaluation Results of Innovation Capacity of CM  Conclusions 2010-7-2 16
  17. 17. 2007 2008 Top 10 industries Rank 1 Score 39.00 in terms of MICI CECOEE Transport Equipment 2 32.42 are as following: Electrical M achinery and Equipment 3 28.26 Smelting and Pressing of Ferrous M etals 4 23.96 General Purpose M achinery 5 22.88 1. CECOEE (Communication M edicines 6 22.35 Equipment, Computers and Tobacco 7 20.18 Other Electronic Equipment) Raw Chemical M aterials and Chemical Products 8 19.55 Special Purpose M achinery 9 18.43 2. Transport Equipment M IM CAOW 10 16.78 3. Electrical Machinery & Smelting and Pressing of Non-ferrous M etals 11 15.62 Equipment Chemical Fibers 12 13.25 M etal Products 13 12.73 4. Smelting & Processing Rubber 14 12.56 of Ferrous Metals Non-metallic M ineral Products 15 12.40 5. General Purpose Machinery Textile 16 12.36 PPCPNF 17 11.71 6. Medicines Beverages 18 11.62 7. Tobacco Plastics 19 11.09 8. Raw Chemical Material Furniture 20 11.07 Foods 21 10.66 & Chemical Products Processing of Food from Agricultural Products 22 10.45 9. Special Purpose Machinery Articles For Culture, Education and Sport Activities 23 10.32 10. MIMCAOW (Measuring Artwork and Other M anufacturing 24 10.28 Paper and Paper Products Instruments and Machinery for 25 10.03 PTWBRPSP Cultural Activity and Office 26 8.95 Printing, Reproduction of Recording M edia 27 8.18 Work) Textile Wearing Apparel, Footware and Caps 28 8.06 Leather, Fur, Feather and Related Products 29 7.67 2010-7-2 17
  18. 18. The Average Annual Growth Rate of MICI from 2001 to 2008 T obacco PPCPNF 12% Smelting and Pressing of Ferrous Metals Articles For Culture, Education and Sport Activities CECOEE Plastics T ransport Equipment 9% PT WBRPSP Metal Products Printing, Reproduction of Recording Media 6% Smelting and Pressing of Non-ferrous Metals Artwork and Other Manufacturing Processing of Food from Agricultural Products 3% Chemical Fibers General Purpose Machinery 0% Foods Raw Chemical Materials and Chemical Products Leather, Fur, Feather and Related Products Medicines Special Purpose Machinery Furniture Rubber Electrical Machinery and Equipment MIMCAOW T extile Paper and Paper Products Non-metallic Mineral Products Beverages T extile Wearing Apparel, Footware and Caps 2010-7-2 18
  19. 19. 2007 2008 Top 10 industries CECOEE 1 Rank Score in terms of innovation 38.90 Transport Equipment 2 32.53 strength index of CM Smelting and Pressing of Ferrous M etals 3 25.82 Electrical M achinery and Equipment 4 24.06 are as following: Raw Chemical M aterials and Chemical Products 5 15.67 1. CECOEE (Communication General Purpose M achinery 6 14.93 Special Purpose M achinery Equipment, Computers & 7 11.79 Smelting and Pressing of Non-ferrous M etals 8 8.98 Other Electronic Equipment ) Textile 9 8.36 2. Transport Equipment M edicines 10 8.13 Non-metallic M ineral Products 11 6.58 3. Smelting & Processing of PPCPNF 12 5.31 Ferrous Metals M etal Products 13 4.94 4. Electrical Machinery & Processing of Food from Agricultural Products 14 4.48 M IM CAOW 15 4.48 Equipment Tobacco 16 4.28 5. Raw Chemical Material & Beverages 17 3.74 Chemical Products Foods 18 3.07 Paper and Paper Products 19 2.77 6. General Purpose Machinery Plastics 20 2.65 7. Special Purpose Machinery Rubber 21 2.57 Textile Wearing Apparel, Footware and Caps 22 2.38 8. Smelting & Processing of Chemical Fibers 23 2.07 Non-Ferrous Metals Leather, Fur, Feather and Related Products 24 1.68 9. Textile Artwork and Other M anufacturing 25 1.35 Articles For Culture,Education and Sport Activities 26 1.23 10. Medicines Furniture 27 0.95 PTWBRPSP 28 0.83 Printing, Reproduction of Recording M edia 29 0.79 2010-7-2 19
  20. 20. 2007 2008 Top 10 industries CECOEE Rank Score in terms of innovation 1 39.10 M edicines 2 36.57 effectiveness index of Tobacco 3 36.07 Electrical M achinery and Equipment 4 32.45 CM are as following: Transport Equipment 5 32.32 1. CECOEE (Communication General Purpose M achinery 6 30.82 Equipment, Computers & M IM CAOW 7 29.07 Special Purpose M achinery 8 25.06 Other Electronic Equipment ) Chemical Fibers 9 24.43 2. Medicines Raw Chemical M aterials and Chemical Products 10 23.44 Rubber 3. Tobacco 11 22.56 Smelting and Pressing of Non-ferrous M etals 12 22.27 4. Electrical Machinery & Smelting and Pressing of Ferrous M etals 13 22.10 Equipment Furniture 14 21.18 M etal Products 15 20.53 5. Transport Equipment Plastics 16 19.53 6. General Purpose Machinery Beverages 17 19.50 Articles For Culture, Education and Sport Activities 7. MIMCAOW (Measuring 18 19.41 Artwork and Other M anufacturing 19 19.22 Instruments & Machinery for Foods 20 18.24 Cultural Activity & Office Work) Non-metallic M ineral Products 21 18.22 8. Special Purpose Machinery PPCPNF 22 18.11 Paper and Paper Products 23 17.30 9. Chemical Fibers PTWBRPSP 24 17.07 10. Raw Chemical Material & Processing of Food from Agricultural Products 25 16.42 Textile Chemical Products 26 16.36 Printing, Reproduction of Recording M edia 27 15.58 Textile Wearing Apparel, Footware and Caps 28 13.74 Leather, Fur, Feather and Related Products 29 13.65 2010-7-2 20
  21. 21. Conclusions  The evaluation method is more reasonable for innovation capacity of CM, whose score is comparable not only among industries, but also in the several years.  Chinese government enhances innovation policies’ support for technological development and industrialized activities, The innovation capacity of CM has continuously been strengthened in general.  Many industries of CM quickly expand their scales of innovative activities, obviously reinforcing their innovation strength. However, the innovation effectiveness makes a little progress that has been the important factor to hinder promoting the innovation capacity rapidly. 2010-7-2 21
  22. 22. Conclusions  To enhance creation, protection, utilization and management capabilities for IPRs.  To strengthen manufacturing design, system integration and manufacturing capacity.  To build innovation infrastructure and industrial R&D system so as to speed up the restructuring and upgrading of industrial structural.  To boost the upgrading, extension and development towards the service sector.  To accelerate the development of the strategic emerging industries. 2010-7-2 22
  23. 23. Thank You! Phone(O):0086-10-62540631 E-mail: chenfang@casipm.ac.cn Address: No. 55, East Zhongguancun Road, Haidian District, Beijing City 2010-7-2 23

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