Innovation surveys and measurement of innovation activities

1. Innovation surveys and measurement of innovation activities Micheline Goedhuys UNU-INTECH,Maastricht, the Netherlands Goedhuys@intech.unu.edu University of Antwerp, Belgium Micheline.Goedhuys@skynet.be

2. Relevanceof innovation surveys • Scarcity of data in general, on innovation in particular • Stimulate research on innovative behaviour of firms • monitoring and evaluation of policies • Systemic nature of innovation calls for firm level information Globelics Academy 2005, Lisbon

3. Overview of session • Measuring innovation: conceptual background • Overview of innovation surveys worldwide • Use of innovation surveys • Designing a survey for Africa: choices made • Survey instrument and its use Globelics Academy 2005, Lisbon

4. Conceptualbackground • linear view that science, research and discovery underlie innovation • innovation measured by science indicators: • R&D • engineers • patenting • bibliometrics, publications, citation indices • surveys (USA, 1960s) collecting R&D, patent data; Globelics Academy 2005, Lisbon

5. Conceptual background End 1980s, 1990s ‘activity approach’: • investigating the ‘black box’ • innovation results from interaction firm-market, learning, feedback (chain-link model of Kline and Rosenberg 1986) • need for indicators capturing non-R&D activities and incremental change Globelics Academy 2005, Lisbon

6. Conceptual background • Harmonisation of survey efforts in the ‘Oslo Manual’, 1992, 1997, … • basis for Community Innovation Surveys • Measurement: innovation is measured as an activity (R&D, design, acquisition of machinery, technology, training) and an output (introduction of product or process innovations) Globelics Academy 2005, Lisbon

7. Conceptual background Characteristics of innovation in developing countries: • Importance of incremental innovation; Organisational and marketing innovation; • Importance of innovation embodied in machinery and equipment (dissemination) • Importance of agriculture; increased knowledge intensity in resource based sectors Globelics Academy 2005, Lisbon

8. Conceptual background Characteristics of innovation in developing countries: • Less private and more informal RD • Fragmented flows of information • Market structure : Small firm size and informality, foreign and state ownership • Barriers to innovation:Uncertainty, infrastructure, lack of awareness, lack of government support instruments Globelics Academy 2005, Lisbon

9. Conceptual background Towards an ‘innovation system approach’: • innovation takes place in firm and system • role of governments • inclusion of services and resource based sectors • broader concept of innovation Ongoing work for NEPAD; Expertise in Asia, Africa and Latin America, resulting in Annex to the Oslo Manual and TPB Globelics Academy 2005, Lisbon

10. CIS • First regional effort to collect innovation data: CIS-1; 13 European countries, 1990-2 • CIS-2; 1994-1996; +4 countries, services • CIS-3; 1998-2000; more firms, more questions • CIS-4: 2002-04 Globelics Academy 2005, Lisbon

11. IS in Latin America • Chile (4), Brazil (2), Mexico (2), Panama (1), Peru (1), Venezuela (1) • Argentina (2), Colombia (3), Uruguay (2) • Paraguay (1), Cuba (1), Ecuador (1) • Bogotà Manual 2000 Globelics Academy 2005, Lisbon

12. Innovation surveys In Southeast Asia: • Malaysia (3), Taiwan (1), Singapore (1) Thailand (2) In Africa: • South Africa (2) Globelics Academy 2005, Lisbon

13. Questionnaire Content (Oslo) • Basic information on the firm: turnover, employment, activity, linkage with foreign firms • Did your firm introduce any new or improved products/processes (and sales from them) • Innovation activities (expenditures): R&D intramural, R&D extramural, acq. machinery, acq. External technology, industrial design, training, market intro • R&D personnel, patent application • Objectives, goals or reasons for innovating Globelics Academy 2005, Lisbon

14. Questionnaire content (2) • Sources of information for innovation • Cooperation or collaboration for innovation (with competitors, customers, universities, government) • Impact of innovations on firm performance • Obstacles to innovation • Government policy or incentives affecting innovation Globelics Academy 2005, Lisbon

15. Comparison of surveys • Organisation: national statistics agency, MOST, universities, consultants • Reference period: 2 or 3 years (mostly 3) • Participation: voluntary, mandatory (in Latin America) Globelics Academy 2005, Lisbon

16. Comparison of surveys (2) • Survey modalities: postal, PTEF follow up, personal interview, telephone interview, online questionnaire, CATI • Sectoral coverage • Firm size: cutoff points: 5, 10, 20 or 50 workers Globelics Academy 2005, Lisbon

17. Use of innovation surveys • by academics and researchers • Identify determinants to innovate • Identify constraints • Innovation and firm performance • Innovation strategies • Regional and country studies • Sector studies • Innovation patterns over time • Developing innovation indicators: measurement issues Globelics Academy 2005, Lisbon

18. Use of innovation surveys • for policy making: • Indicators for benchmarking • Mapping innovation ; innovation in new sectors • Assessing trends • Monitoring specific policy instruments Globelics Academy 2005, Lisbon

19. Example European innovation scoreboard : uses 20 indicators Cross-country comparisons, sectoral comparisons changes over time consensus in policy action uses CIS based indicators % SMEs with in-house innovative activities % SMEs that collaborate on innovation total innovation expenditures as % sales % new-to-market products/sales % new-to-firm products/sales Globelics Academy 2005, Lisbon

20. A policy-relevant survey for Africa • An innovation system oriented survey - focus on the firm • use of aggregate S&T indicators to complement firm-level innovation data • use of panel data: trends, adaptive policy making • length of questionnaire • scope • stratified random sample • questions easy to understand, respond and code Globelics Academy 2005, Lisbon

21. Proposed questionnaire General information questions: name, year started, address, education and global exposure of owner, # scientists engineers employed, ownership, sector, evolution of size and exports Globelics Academy 2005, Lisbon

22. Proposed questionnaire Innovation questions: • Licensing; licence contract, year obtained, from a local or foreign firm or research institute • Linkages (subcontracting & outsourcing); • New machinery and equipment, expend.; Globelics Academy 2005, Lisbon

23. Introduced new/ improved existing product/process; new waste management procedures, maintenance routines, quality controls, training programs; new ways of organizing production and marketing Globelics Academy 2005, Lisbon

24. Reasons • Sources of information • Collaboration • Impact • Obstacles Globelics Academy 2005, Lisbon

25. Proposed questionnaire • S&T indicators: # R&D employees and expenditures, patents granted, use internet • Policy impact Globelics Academy 2005, Lisbon

26. Suggested reading or sources for further consultation • Smith, Keith, 2004, Measuring innovation, in: Oxford handbook of innovation, chapter 6, p.149-175 • UNU-INTECH, Designing a policy relevant innovation survey for NEPAD, forthcoming • The OSLO Manual, downloadable from the internet • The Bogota Manual, downloadable from the internet Globelics Academy 2005, Lisbon

27. Globelics Academy 2005, Lisbon