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4.3 Innovation Headline Indicator [RESTRICTED TO ERAC MEMBERS]

4.3 Innovation Headline Indicator [RESTRICTED TO ERAC MEMBERS]. Clara de la Torre, Pierre Vigier, DG Research and Innovation. ERAC, 6 September 2012. Headline Indicators. Innovation Union Scoreboard. Innovation Union Competitiveness report.

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4.3 Innovation Headline Indicator [RESTRICTED TO ERAC MEMBERS]

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  1. 4.3 Innovation Headline Indicator[RESTRICTED TO ERAC MEMBERS] Clara de la Torre, Pierre Vigier, DG Research and Innovation ERAC, 6 September 2012

  2. Headline Indicators Innovation Union Scoreboard Innovation Union Competitiveness report Where do we want to go?Where do we stand?How can we get there?Innovation Union Scoreboard: http://ec.europa.eu/enterprise/policies/innovation/files/ius-2011_en.pdfInnovation Union Competitiveness Report: http://ec.europa.eu/iuc2011 EU STI monitoring 2010-2020

  3. Innovation Headline Indicator: the origins • Europe 2020: develop an innovation headline indicatornext to the R&D intensitytarget • Innovation Union (October 2010): share of fast-growinginnovativecompaniesin the economy • European Council of 4 February 2011: "quicklydevelop a single, integrative innovation indicator" • DG RTD, DG ENTR, Eurostat, OECD started to work on developing the indicator in November 2010

  4. Objectiveof the indicator The Innovation Headline Indicator should inform on the capacity of an economy to create and maintain high quality jobs in economic sectors that are promising for the future in terms of innovation, growth and employment.

  5. 10 criteria for the indicator

  6. Two dimensions to be combined in the indicator • 1) High-growth of enterprises • 2) Innovation

  7. 1) High-growth enterprises • Builds on work by the EntrepreneurshipIndicators Programme (EIP), a joint OECD/Eurostat programme thatstartedin 2006 • Definition of High-growthenterprisesfor the innovation indicator: • averageannualgrowth (in terms of employment) greaterthan 10% over a 3-year period • 10 or more employeesat the beginning of the observation period • Definitioninternationallytested and developed by the EIP (with 20% instead of 10% for the growththreshold) • 10% waspreferred for the innovation indicator in order to account for a greatershare of the economy, in particular in times of economiccrisis. • Basedon business registers' data • Good international comparability of the data

  8. 2) Innovation • Sectoraldefinition of innovation, sothat the innovation indicator: • Takesintoaccount the economic structure of each country • Defines an "innovation frontier" for eacheconomicsector • Is based on reliable data • Innovation coefficients are assigned to economicactivities (NACE, 3-digit level) based on: • Community Innovation Survey (CIS) data • KnowledgeIntensity of EconomicActivities (KIA) data • Labour productivity (PROD) data • 3-digit level, a precise, fine-grainedeconomic breakdown: • Smart specialisation • Structural change within 2-digit sectors • Reliable data

  9. International comparisons • Non-European countries, incl. the US, have been associatedsince the start in November 2010 (through OECD/EIP) • Brazil, New-Zealand, China, Indiacommunicated data for testingdefinition and volatility of variables(autumn 2011) • Important difficultieslinked to the absence of business registers in Asian countries might impair the good international comparability

  10. Production of the indicator: current status • First data collection on employment in high-growthenterprisesled by Eurostat took place in 2011 • It provided data for one referenceyear (2009) • Second data collection on-going (deadline 10 September2012) • It willprovidetwoadditionalreferenceyears: 2008 and 2010 (and 2011 in some cases) • Support from National Statistical Offices is crucial

  11. Nextsteps (indicative) • End-September/EarlyOctober: • Calculationswiththe new data collectedwhichwillprovide the first short time series: 2008, 2009, 2010 (and 2011 for someMSs) • Second half of October: • Member States' seminar to discussmethodology and draftproposals • End of 2012/beginning of 2013: • Proposal to be made by the Commission

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