Innovation Statistics in Russia: Methodology and Results

1. STATE UNIVERSITY – HIGHER SCHOOL OF ECONOMICS Institute for Statistical Studies and Economics of Knowledge Innovation Statistics in Russia: Methodology and Results Prof. Leonid Gokhberg

2. Outline • Policy demand for data on innovation • The measurement of inovation: international standards • Innovation statistics in Russia: methodology and organisation • Results from the Russian innovation survey • Conclusions and perspectives

3. Technology and innovation are key drivers of increased growth performance (OECD, 2000) • Correlation between expenditureon R&D / innovationandGDP growth 1% 0.05-0.15% • Increasing R&D intensity and innovation activities of all economy sectors • Technology & innovation cycles shortened • Stronger orientation of R&D to market demand • Networked economy • Nonlinear innovation model • Overcoming institutional barriers • Networks & linkages

4. Nations - leaders of the new economy Russia • Innovation • Companies / universities • Small firms • Private capital / ventures • R&D • Research Institutes • Large enterprises • Government financing

5. Oslo Manual (1992) Technological innovation • CIS1 (1993). Period 1990-92 Manufacturing • CIS2 (1997). Period 1996-96 Manufacturing + selected services Oslo Manual (1997) Technological innovation + Organizational innovation • CIS3 (2001). Period 1998-2000 Manufacturing + services • CIS4 (2005). Period 2002-2004 Manufacturing + services • Oslo Manual (2005) • A single broader definition of innovation The Oslo Manual and the Community Inovation Survey (CIS)

6. The Oslo Manual – 2005 An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations. Types of innovation: • product • process • marketing • organisational • (strategy) • (management) • (aesthetic)

7. Non-technological innovation • Strategy • implementation of new or significantly changed corporate strategies • Management • implementation of advanced management techniques • Organisation • implementation of new organisational structures • Marketing • changing significantly firm’s marketing concepts • Aesthetic • changing aesthetic appearance or design or other subjective changes in products

8. Issues addressed by the CIS • General information about the firm • Type of innovation (product, process) • Sources of information for innovation • Objectives of innovation • Factors hampering innovation • Cost of innovation • Impact of innovation • R&D • Cooperation in innovation

9. external: markets & competitiveness internal: employment, technology, organisation Key indicators from the innovation survey • Percentage of innovating firms • Innovation expenditure • Percentage of sales due to innovative products Implications • Public policies for innovation • Company strategies

10. Innovation Surveys in Russia • Since 1994 • Compatible with international standards (OECD / Eurostat Oslo Manual, EU CIS) • Key methodological principles: • Initial focus on technological innovations; now – organisational and marketing innovations also • Considering enterprises as statistical units • Classification of innovation activities • Distinguishing product and process innovations new for a surveyed enterprise • Annual mandatory survey

11. Identification of innovating enterprises = participation in innovative activities (during the period under review) • Research and development • Acquisition of embodied technology (machinery & equipment) for the implementation of innovations • Acquisition of disembodied technology – patents, licenses, industrial prototypes, utility models, know-how, engineering services • Acquisition of software for the implementation of innovations • Industrial design • Tooling up and industrial engineering • Training and retraining of personnel • Marketing of new or improved products

12. Revision (CIS-4)+ marketing innovation Revision (CIS-3)+ organisational innovation + small enterprises Annual innovation surveys in industry (extracting & manufacturing, large & medium enterprises) + services 1994 1998 1999 2000 2006 Russian Innovation Surveys in Progress

13. Major Issues • Innovative vs. non-innovative enterprises • Expenditure on technological innovation (by innovative activity, source of funds, type of innovation) • Intramural R&D units • Sales of innovative products & services (by novelty, e.g. exports) • Effects of innovation • Hampering factors • Sources of information for innovation • Innovation co-operation • Technology acquisition & transfer • IPR protection methods • Organisational innovations • Marketing innovations (since 2006) • Expenditure on organisational and marketing innovation (since 2006)

14. Statistical Surveying of Innovative Activity of Small Companies • Coverage – industry • Focus – technological innovation only • Frequency – biennially • Abridged questionnaire • Expenditure on technological innovation (by innovative activity & source of funds) • Sales of innovative products • R&D expenditure & personnel

15. Scope 2005: large & medium enterprises – 27.8 thousand e.g. industry – 25.8 services (telecom, IT, etc.) – 2.0 Small enterprises – 62.6 thousand

16. Innovation Activity in Industry

17. Innovation Activity in Russia and the EU

18. Innovating Enterprises in Industry by Economic Activity: 2005

19. Organisational Innovation by Economic Activity: 2005 Major innovations: Quality control Marketing ICT-based management systems

20. Percentage of Industrial Enterprises Implementing Organisational Innovation

21. Innovating Enterprises by Type of Innovation Activity

22. Expenditure on Technological Innovation 2005: 1.2% of total sales in industry

23. Expenditure on Technological Innovation by Type of Innovation Activity (per cent) 1995 2005

24. Percentage Distribution of Expenditure on Technological Innovation by Type of Innovation Activity

25. Sources of Information for Innovation by Rate of Importance: 2005

26. Ranking of Innovation Objectives (Effects): 2005

27. 2001 2002 2003 2004 2005 1 – Total 2 – High-tech and medium-high-tech 3 – Medium-high-tech 4 – Low-tech Innovative Products as a % of Sales in Industry by R&D Intensity

28. New for a market New for a company Percentage of New Products in Industry

29. Prerequisites for Growth Innovating vs. Non-innovating Enterprises: 2005 (per cent)

30. Services vs. Industry: 2005(per cent)

31. Innovative Activity of Small Enterprises in Industry

32. What is your attitude towards innovations at household? Source: Public Attitudes Toward S&T and Innovation Survey, HSE Institute for Statistical Studies and Economics of Knowledge Prerequisites for Growth Innovative Consumer Demand(per cent of respondents)

33. Major Publications • Innovation Indicators Ministry of Education & Science / Rosstat / HSE-ISEK (annual) • Innovation in Industry and Services.Analytical Report HSE-ISEK • Chapters on S&T and Innovation (contribution by HSE-ISEK) in: Russian Statistical Yearbook Regions of Russia

34. Perspectives • Innovation data: a gold mine & background for designing evidence-based innovation policies • New dimensions: organisational & marketing innovations • Improvement of date collection & analysis: integration with industrial statistics • More sophisticated economic analyses (use of micro-data) • International comparability • Pilot projects?

35. Thank you lgokhberg@hse.ru