Moscow January 21, 2015 An overview of STI statistics and indicators Giorgio Sirilli ISCrES - CNR

1. Moscow January 21, 2015 An overview of STI statistics and indicators Giorgio Sirilli ISCrES - CNR

2. Outline of the presentation STI indicators STI policy The actors Models of innovation Manuals Uses and abuses of indicators Concluding remarks

3. Science, technology and innovation Scienceis the reasoned investigation or study of phenomena, aimed at discovering enduring principles among elements of the phenomenal world by employing formal techniques such as the scientific method Technology is the collection of tools, including machinery, modifications, arrangements and procedures used by humans Innovationis the process practical application of knowledge translating an idea or invention into a good or service that creates value or for which customers will pay

4. Indicators Statistic: A numerical fact or datum, i.e. one computed from a sample. Statistical data: Data from a survey or administrative source used to produce statistics. Statistical indicator: A statistic, or combinations of statistics, providing information on some aspect of the state of a system or of its change over time. (For example, gross domestic product (GDP) provides information on the level of value added in the economy, and its change overtime is an indicator of the economic state of the nation.)

5. Indicators Indicators are a technology, a product, which - governs behaviour - is modified by users (outside of the producer community) - develops in response to user needs Data sources • Surveys, administrative data, private files, case studies • Data collection is informed by manuals Data populate statistics which can be indicators Decisions are taken on the basis of indicators

6. Science and technology indicators S&Tindicatorsare defined as “a series of data which measures and reflects the science and technology endeavor of a country, demonstrates its strengths and weaknesses and follows its changing character notably with the aim of providing early warning of events and trends which might impair its capability to meet the country’s needs”. Indicators can help “to shape lines of argument and policy reasoning. They can serve as checks, they are onlypart of what is needed”. (OECD, 1976)

7. Lord Kelvin “If you can not measure it, you can not improve it.” Lord Kelvin

8. Hariolf Grupp “If you can not measure it, don’t talk about it.” Ariolf Grupp

9. The first attempttomeasureS&T in 1957 Frascati Manual (1963) The Frascati manual “family” A continousprocessofbroadening and deepening: from macro to micro, from public to private The roleofinternationalorganisations The dialoguebetweenproducers and users The evolution of STI indicators

10. Science and technology policy A history which starts after WW2 1940s 2010s competitiveness social needs innovation science technology jobs

11. Science and technology policy Report “Science the Endless Frontier” 1945 (Vannevar Bush)

12. “Science the Endless Frontier” Concerns: Military security; Health Solution: Science policy “The Government is particularly fitted to perform certain functions, such as the coordination and support of broad programs on problems of great national importance” “Scientific progress on a broad front results from the play of free intellects, working on subjects of their own choice, in the manner dictated by their curiosity for exploration of the unknown. Freedom of inquiry must be preserved under any plan for Government support of science”

13. “Science the Endless Frontier” “Publicly and privately supported colleges and universities and the endowed research institutes must furnish both the new scientific knowledge and the trained research workers. It is chiefly in these institutions that scientists may work in an atmosphere which is relatively free from the adverse pressure of convention, prejudice, or commercial necessity. At their best they provide the scientific worker with a strong sense of solidarity and security, as well as a substantial degree of personal intellectual freedom.” “Industry is generally inhibited by preconceived goals, by its own clearly defined standards, and by the constant pressure of commercial necessity. Satisfactory progress in basic science seldom occurs under conditions prevailing in the normal industry laboratory.”

14. The triangle in STI policy making Policy makersdesign the future Analystsinterprettoday Data producersmeasure the past

15. Luigi EinaudiItalian President Policy makers “Conoscere per deliberare” Know first and then sanction

16. Policy makers Vannevar Bush Report “Science the Endless Frontier” 1945 President Roosevelt

17. Policy makers “Whyshoudwepay the researchersifwemake the best shoes in the world?” Silvio Berlusconi “Culture does not provide food” (Con la cultura non si mangia) Giulio Tremonti

18. The relationship between producers and users After WWII the main issue in STI policy was the social responsibility of science. Now the attention is placed on the social return of investment on STI and, in particular, on innovation and social objectives Weak innovation theories do not allow a straighforward interpretation of indicators A tension: the simplification of policy makers (e.g. the 3% R&D/GDP ratio) versus deepening of analysts The time dimension: demand of indicators and analyses (quick and dirty) but …. the construction of indicators is a “heavy ship” (more than 10 years to build)

19. Producersofindicators OECD Group of ‘National Experts on Science and Technology Indicators’ - NESTI

20. NESTI: Working Party of National Experts on Science and Technology Indicators (1962) Mission: Produce methodologies, statistics and analyses Co-ordinating body Clearing house NESTI

21. International organisationsactive in STI indicators OECD and member countries Eurostat and the relevant Commission DGs and member states of the EU UNESCO United Nations Institute of Statistics RICYT and member countries NEPAD is moving in this direction

22. The role of OECD in the development of S&T measurement in the 1960s In the 1960s few countries collected data on S&T The OECD offered a ready-made model for those who had not yet developed the necessary instruments Standardisation was proposed by an international organisation and not by a specific country The Frascati Manual was introduced with a petits pas strategy - the first edition was an internal document only (1962) - the Manual was tested (1963-1964) in many countries - it was revised in light of the experience gained from the surveys The Frascati Manual has never been an imperative document: countries are totally free to apply its conventions No harmonised questionnaire

23. United Nations Fundamental Principles of Official Statistics Official statistics provide an indispensable element in the information system of a democratic society. They need to be compiled and made available on an impartial basis by official agencies. To retain trust in official statistics, the statistical agencies need to decide according to strictly professional considerations on methods and procedures. To facilitate a correct interpretation of the data, the statistical agencies are to present information according to scientific standards on the sources, methods and procedures of the statistics. Source: UN Statistical commission

24. United Nations Fundamental Principles of Official Statistics Data for statistical purposes may be drawn from all types of sources, be they statistical surveys or administrative records. Individual data collected by statistical agencies are to be strictly confidential and used exclusively for statistical purposes. The laws, regulations and measures under which the statistical systems operate are to be made public. Coordination among statistical agencies is essential. Source: UN Statistical commission

25. The “dangerous” business of statisticians What matters is not how one fashions things, but what one does with them; not the weapon, but the battle (…). The making and the using of the tool are different things. O. Spenger, Man and Technics: A Contribution to a Philosophy of Life, 1932

26. Indicators community The membersof the indicators community haveto play the difficult game offinding a properbalancebetween data collection, analysis and policy making – preservingtheirintellectualintegrity

27. Models of innovation Indicators make sense in the context of models Linear Chain-linked Triple helix Open innovation

28. The Linear model of innovation Research Production Development Design Engineering • Based on research • Sequential • Technocratic

29. The Chain-linked model of innovation Research • Ricerca Knowledge Invention/ analytical project Detailed project & test Re-design & production Distribution & market Potential market • Invenzione/ • progettazione • analitica • Progettazione • dettagliata e • test • Distribuzione • e mercato • Mercato • potenziale Based on design Interactive Researchisnot a pre-requisiteforinnovation

30. The Triple-helix model of innovation

31. The Triple-helix model of innovation Government Government-sponsored Research Institutes Research for public purposes Applied research Universities Supply scientists & engineers Curiosity-driven Basic research Firms Commercialisation Produce innovation Development (R&D))

32. Open innovation

33. Open innovation

34. Open innovation OECD Science, Technology and Industry Scoreboard, 2013

35. Open innovation OECD Science, Technology and Industry Scoreboard, 2013

36. Open innovation OECD Science, Technology and Industry Scoreboard, 2013

37. Relationship between research, develoment and innovation Overlapping area Commercialisation Basic research Intellectual property rights INNOVATION Experimentaldevelopment R&D Technical assistance Distribution Applied research Industralisation Production

38. Whatis a Manual? Manuals are codified knowledge They are guidelines for the collection and interpretation of data and for international comparisons of data, statistics and indicators. They are supported by an international infrastructure (ISIC, ISCED and ISCO) Manuals provide a language of discourse and they behave like a technology (our guiding assumption)

39. The OECD “Frascati Manual family” • The Measurement of Scientific and Technical Activities: Proposed Standard Practice for Surveys of Research and Development. Frascati Manual (2002) • Proposed Guidelines for Collecting and Interpreting Technological Innovation Data Oslo Manual (2005) • PatentStatisticsManual(1994) • Manual on the Measurement of Human Resources in Science and Technology Canberra Manual (1995) • Proposed Standard Practice for the Collection and Interpretation of Data on the Technological Balance of Payments (1992) _______________________________________________ Bibliometrics Manual

40. The OECD “Frascati manual family”

41. Other related manuals and classifications System of National Accounts – SNA (CEC et al., 1994) International Standard Industrial Classification – ISIC Rev. 3.1 (UN, 2002) Statistical Classification of Economic Activities in the European Community – NACE Rev. 1.1 – series 2E. Nomenclature for the analysis and comparison of scientific programmes and budgets (NABS 2007)

42. The Frascati Manual

43. Freeman: the first edition of the Frascati Manual (1962) Freeman proposed standardised definitions, concepts, methodologies for conducting R&D surveys and measuring inputs, namely money devoted to R&D and S&T personnel. Four topics: - definition of research (basic, applied, development) - demarcation with other S&T activities (teaching, production, etc.), - economic sectors (university, government, industry, pnp) - surveying methodology The underlying model: linear

44. The R&D data People Money • Expenditure (GERD) • Budget appropriations (GBAORD)

45. Frascati Manual: The definition of R&D Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of knowledge to devise new applications Basic research Applied research Experimental development

46. Frascati Manual: the definition of R&D personnel R&D personnelAll persons employed directly on R&D should be counted, as well as those providing direct services such as R&D managers, administrators, and clerical staff Researchers Technicians and equivalent staff Other supporting staff

47. Oslo Manual Harmonised questionnaire

48. Types of innovation Product innovation (goods and services) Process innovation Marketing innovation Organisational innovation

49. Types of innovation A product innovation is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includessignificantimprovements in technicalspecifications, components and materials, incorporated software, user friendliness or other functional characteristics. A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software A marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. An organisational innovation is the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations.

50. Types of innovation